What Is VeChain (VET)?

TL;DR

VeChain provides blockchain solutions for businesses around the globe.

With plenty of existing industry blockchain applications from supply chain management to anti-counterfeiting and carbon credits, their systems have been proven in the real world. VET is the coin that underpins VeChain, where VTHO is the gas token that’s used for transactions on the VeChainThor blockchain (like Ethereum’s gas).

Introduction

VeChain is a company established in 2015 that provides blockchain-based solutions for businesses by leveraging the power of its VeChainThor blockchain. The company has deep ties to the Chinese industry and government and seeks to strengthen these bonds further. 

What is VeChain (VET)?

Introduced in 2015 as part of Shanghai-based Blockchain-as-a-Service (BaaS) company, BitSE, VeChain is a distributed business ecosystem leveraging blockchain technology. It’s specifically designed to be used by both small and big businesses. VeChain’s public blockchain is called VeChainThor.

The Vechain Foundation is founded in Singapore and oversees the development, governance, and advancement of the VeChain ecosystem.

VeChain is considered a mature company by some, with many real-world business applications already existing on the VeChainThor blockchain. As the VeChain Whitepaper 2.0 states, “these solutions are not just theoretical, they are solutions tested and discussed with over 700 enterprises and implemented for over 100+ fortune level enterprises.”

VeChain’s parent body has been given a 5-star rated Blockchain Service Certificate from TÜV Saarland, a European certification body.

How VeChain (VET) works

The VeChainThor blockchain works similarly to other business-use blockchain platforms. Businesses use VeChain’s fully functional Blockchain-as-a-Service (BaaS) product called ToolChain to build their blockchain-based solutions. VeChainThor also supports smart contracts.

Single transactions on the VeChainThor blockchain can carry out multiple tasks. In addition, VeChain app users don’t need to hold any crypto to perform transactions. This can be done instead by the app owners, which can make the user experience more convenient for the average user.

The VeChainThor blockchain uses Proof of Authority (PoA) consensus, which delegates power to certain nodes in the VeChainThor blockchain for confirming transactions. This means that it only passes transactional blocks through Authority Masternodes that need to hold at least 25,000,000 VET.

What are VET and VTHO?

VeChain has two separate tokens: VET and VTHO. 

VET (VeChain Token) is used for financial transactions on the VeChainThor blockchain and market speculation.

VTHO (VeThor Token) is the “energy token” that’s used to conduct transactions on VeChainThor. VET owners can generate VTHO for use on the VeChainThor blockchain.

Why VeChain (VET) is important

VeChain is notable for its deep ties to China – a critical blockchain market that is difficult to enter for non-Chinese companies. The company is headquartered in Singapore, while it has an office in Shanghai, investment from Chinese VC firm FutureCap, and a Chinese CEO, Sunny Lu. The project also has partnerships with several Chinese government bodies, including the China Animal Health And Food Safety Alliance.

The organization also has many business partners with solutions that already exist in the real world, on the VeChainThor blockchain. Partners that already have VeChain solutions include PriceWaterhouseCoopers (PwC), Walmart China, Renault, and Shanghai Waigaoqiao Direct Imported Goods.

VeChain (VET) use cases

Let’s go through some of the most significant use cases of VeChain’s technology. This isn’t an extensive list, however. You can check out the VechainWorld library of Dapps for more.

Food safety

Blockchain-based solutions could lead to a more transparent food economy around the world.

VeChain-enabled Internet of Things (IoT) devices can be deployed across the supply chain, including on products, vehicles, and warehouses. Then, environmental and location-based data from these devices can be uploaded, verified, and stored in a tamper-proof, decentralized manner on the VeChainThor blockchain. Solutions like this are already in effect for several companies, including Shenzhen Yuhongtai Foods.

Anti-counterfeiting

Counterfeiting in the luxury goods market is a serious problem. By attaching an encrypted chip and then using the chip to log and trace logistics, warehousing, maintenance, and resale, owners can be assured of authenticity. This has been used for luxury wine tracing for Shanghai Waigaoqiao Direct Imported Goods, and in testing for Renault luxury vehicle components.

Health records

Healthcare records systems are notoriously archaic. Instead of using inefficient and insecure record systems for lab results, this valuable data can be stored on the blockchain, with only patients and other authorized parties having access. A VeChain-based E-HCert App will be rolled out to patients of both the Mediterranean Hospital of Cyprus and Aretaeio Hospital in 2021.

Tracking carbon emissions

By driving carbon reduction by tracking carbon-emitting activities, this solution allows consumers to be involved in a carbon-saving scheme. 

When smart devices, such as cars or appliances show that a consumer is generating less carbon, they can then receive credits to be used on energy services. BYD, a Chinese electric car brand, already uses a Vechain solution.

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How to store VeChain (VET)

You can store VET and VTHO, as well as several other crypto assets in the VeChainThor official light wallet on iOS or Android. The official desktop wallet is VeChain Sync, which can also be used with the Ledger for cold wallet storage.

Third-party wallets that can store VET and VTHO include Trust Wallet, Cobo Wallet, Atomic Wallet, Arkane Wallet, MySafeWallet, Guarda Wallet, Ellipal, and Exodus.

Closing thoughts

VeChain is ambitious and already has a strong presence in the Chinese market. 

With proven projects from large name enterprises already running on the VeChainThor blockchain, the company has shown that it can help businesses create useful blockchain applications.