Cryptocurrencies are not the only way to use the blockchain: its immutability is an asset for tracking supply chains, too! In our VeChainThor guide, we will take a deeper look at the project that focuses on this use case.
- VeChainThor is a blockchain that serves as a foundation for VeChain ecosystem and its main cryptocurrency is VET;
- The main use case for VeChain is supply chain management, and the project intends to solve the problems of transparency and reliability of tracking;
- VeChain is best known for a large number of partnerships with enterprises across the world, spanning across healthcare, retail and luxury goods, agriculture and more.
What is VeChainThor?
VeChain is a supply-chain platform that is powered by blockchain. Its main applications are in supply chain management, as well as in the Internet of Things.
The blockchain that supports the VeChain platform is called Thor, so VeChainThor is the blockchain level of the whole ecosystem. Apart from it, there are several layers to the VeChain ecosystem.
The unique consensus mechanism that VeChainThor uses is called Proof-of-Authority (PoA), which is a spin on Proof-of-Stake. The chain is secured by masternodes which passed “know-your-customer\business” authorization.
PoA takes precedence over usual rules for PoS: authorization removes the need to compete for resources or concentration of value.
Authority Masternodes are responsible for maintaining the blockchain and producing blocks. Any user can run an Economic Node for voting rights and occasional rewards from the VeChain foundation.
This layer of the system includes all the firmware: RFID chips, identity devices VeKeys and so on.
This layer includes all protocols and infrastructure built on top of VeChainThor. It can be used by both VeChain developers and independent parties.
Finally, using the tools from the infrastructure layer, developers and users can build applications for various purposes: dApps, tokens, research tools.
VeChain History and Team
The project was started in 2015 by Sunny Lu and Jay Zhang, who had worked for Louis Vuitton China and Deloitte respectively. Both of them were not strangers to the pains of supply chain management, particularly, lack of transparency.
VeChain received $1.5 billion in backing from prominent investors like BMW and Groupe Renault. They also conducted an ICO in 2017, selling 86,716,263,400 VEN Ethereum tokens.
The genesis block of the mainnet was mined in 2018, and VEN were converted into VET in 1:100 ratio.
The project’s team now includes dozens of contributors, mainly operating from Singapore.
What is VET Cryptocurrency?
VeChain is different from other supply chain blockchain platforms in that it uses cryptocurrencies for operating. What is VeChainThor native currency and how to use it?
Instead of one coin, VeChain Thor uses two different native tokens, VET and VTHO.
VET is used mainly for value transfer. Becoming a node will also require a stake in VET.
Holding VET generates VTHO, a gas token which is used for paying the transaction fees.
Separating main and gas tokens helps to keep transaction fees resistant to volatility (remember skyrocketing ETH fees when the coin was rallying?).
At the very beginning, VEN holders were required to exchange their ICO tokens for VET coins. This has caused the VET price to sink to $0.07889 and then pump to $0.1818 in September 2018.
VeChain launched well into the “crypto winter” and has been trading below $0.01 until summer 2020. It was subject to a lot of short-term volatility caused by frequent partnership announcements, but did not perform spectacularly until then.
In the second half of 2020, it started growing to $0.02 and went on a parabolic rally in spring 2021. VET’s all-time high price was reached on Apr 17, 2021 when it was trading for $0.2782.
At the moment of writing, the VET price is $0.1105 and it ranks 21st according to CoinMarketCap.
VeChain Use cases
As we previously mentioned in this VeChainThor guide, this blockchain can serve as home to a variety of applications. They can be monetized with the help of VET tokens.
To track supply chains, VeChain is used by Walmart China and Bayer. Consumers can scan codes to get data on the source and authenticity of the product.
What else is VeChainThor supporting? For example, Jur Platform uses VeChain blockchain in arbitrage and issues JUR tokens with the help of VET. SafeHaven’s app Inheriti is pretty much the same but for inheritance.
Games and entertainment can be found in the ecosystem, too. There are Crypto Punks-like marketplace Vpunks and simple blockchain games like 2048x.
What is VeChainThor’s Competition?
Of course, VeChain is not a unique project to take on supply chains. There is also Waltonchain which itself is an Ethereum token, so on that platform the transactions and actual tracking are separate.
In the IoT sphere, VeChain faces serious competition from IOTA. The latter is more focused on the IoT use case so its structure is not of a blockchain but a decentralized network.
What is VeChainThor Criticized For?
In December 2020, the buyback address of VeChain Foundation was hacked to a loss of 1.1 billion VET ($6.5 million at the time). While the consequences were more or less mitigated, it certainly cast a serious doubt on the degree of decentralization of the platform.
VeChain Partnerships and Future Plans
As briefly touched upon in this VeChainThor guide, VeChain is known for its massive roster of partners utilizing the blockchain. Just a few of them are:
- Vape manufacturer PuffBar, to combat counterfeit and distribution to minors;
- China Animal Health and Food Safety Alliance (CAFA), as a blockchain service provider to more than 130 members;
- Mediterranean Hospital of Cyprus, to track COVID-19 vaccination of health workers;
- Bayer China, to track drug distribution and certify authenticity;
- Walmart China, to improve food safety and quality.
Like in other open-source (and partially open-source) blockchain platforms, developers submit improvement proposals for review and implementation. So what is VeChainThor’s future?
According to the official VeChain news blog, the biggest item in the pipeline is PoA 2.0. It is intended to improve the finality of transactions and security.
1) Business Channels like PWC, DNVGL, Grant Thornton are the Whales here
2) Govts like China, France, Italy, Cyprus, Norway, San Marino will be on their Smart Contracts
3) Gigantic Enterprises like Walmart, BMW, Haier uses #Vechain
— ProfessorSD ® (@capitalist_sd) August 5, 2021
Twitter user ProfessorSD is giving their insight into the prospects and future of VeChain. There is too much for a single tweet, so they wrote a comprehensive thread!
Technology is constantly evolving for the better. It takes time to adopt but once it does, the world changes forever. #VechainThor has that potential and I for one am god damn exited to see it! 🦍 #Vechain $VET #VeFam pic.twitter.com/soFHdY94R7
— APE Crypto (@APECryptoYT) August 11, 2021
As for the present, we already have a very illustrative example of how VeChain in particular has changed, in this case, healthcare.
#Vechain #Vet #Crypto #Macro $Vet Not that different from $Ocean; we’re now in a comfortable Situation; had a nice run from breakout, price hovering above 200M; so still facing 0.16 as first target; if things turning got a nice clean exit here! Ride and enjoy! 🏄♂️✅ pic.twitter.com/zSlkAfvIUY
— THE FLASH (@THE_FLASH_G) August 12, 2021
Trader THE FLASH confirms that in the nearest future, the movement of price will not disappoint.
Which Wallet to Choose for VET?
And now, some practical advice in our VeChainThor guide if you have the eyes for holding VET.
VET can be stored in most popular multi-coin wallets. There is an official wallet readily available at the project’s website, too.
If you want to store and stake VET, pick the Exodus wallet! It has the option to swap coins and tokens right in the application, powered by ChangeHero.
For safer storage, you can choose Ledger hardware wallet but remember, swaps and staking can only be done in a hot wallet.
How to exchange VET?
Where to buy VeChain? For your convenience, VeChainThor coins can be swapped on ChangeHero in five easy steps:
- Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
- Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
- And now, relax! We are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
- As soon as the exchange has been processed, your VET are on the way to your wallet. Your feedback is always welcome!
The VeChain ecosystem is constantly growing and shows no signs of slowing down. The use case which helps both consumers and businesses basically make the platform future-proof and reliably viable.
Frequently Asked Questions
Is VeChain and VeChainThor the same?
VeChain is the name of the platform that includes VeChainThor and applications built on it, as well as firmware that comes with the apps.
What is VeChain used for?
The main use case for VeChain is transparent supply chain management and tracking. It is employed in retail and luxury goods production to help consumers and businesses verify safety and authenticity of products.
Is VeChain VET or VEN?
VeChain has been supporting only VET since 2018. VEN is a now defunct ERC-20 token that was converted to VET upon mainnet launch.
What companies use VeChain?
Some of the companies using VeChain are Walmart China, PuffBar, Bayer, PWC and BMW.
What is the difference between VET and VTHO?
VET is the main token in the pair, used in value transfer and staking. VTHO is the gas token, which gets spent for transaction fees.