VeChain

What is VeChain?

VeChain is a cryptocurrency and smart contracts platform focused on supply chain management. It allows manufacturers to add sensors, such as RFID tags, to their products that can then record data onto the VeChain blockchain. It aims on creating an ecosystem that can be used by enterprises for products and information. The ecosystem enables transparency and symmetrical information.

The Vechain platform contains two distinct tokens namely VeChain Token (VET) and VeChainThor Energy (VTHO). VET is used to transfer value across VeChain’s network, and VTHO is used as energy to power smart contract transactions. The unique two-token system (VET+VTHO) significantly helps separate the cost of using blockchain from market speculation.

How VeChain works?

According to Kraken, VeChain is trying to disrupt traditional supply chain models, an industry which before blockchain had remained little changed over the decades. VeChain’s goal is to enable better digital collaboration between businesses by giving them new tools for efficient data transfer and supply-chain management.

To regulate the process in which transactions between users are verified and added to VeChain’s public ledger, VeChain Thor uses a consensus mechanism known as proof of authority (PoA). The public blockchain of VeChain is known as VeChain Thor. 

Users who verify and add transactions to the blockchain are known as Authority Masternodes, and, to become one, users must stake a minimum of 25 million VET and submit identifying information to the VeChain Foundation. VeChain is working to improve its PoA to ensure a more randomized and distributed block creating mechanism.

History of VeChain

VeChain was founded back in 2015  and was launched in 2016 by Sunny Lu. Sunny Lu used to work as a Chief Information Officer (CIO) of Louis Vuitton China. Initially VeChain functioned on the Ethereum blockchain. Then in 2018 with the launch of mainnet, VeChain transitioned onto its own blockchain namely VeChain Thor. VeChain has mostly software developers as their employees. 

Having launched in June 2016, VeChain is one of the oldest dedicated blockchain supply chain platforms on the market. As the VeChain Whitepaper 2.0 states VeChain's supply chain solutions are not just theoretical, they are solutions tested and discussed with over 700 enterprises and implemented for over 100+ fortune level enterprises.

VeChain supply and market cap 

The main token of VeChain platform is VET. Currently VET has a circulating supply of 64,315,576,989 VET coins and it has a maximum supply of 86,712,634,466 VET coins. At the time of writing VET is ranked at number 22 based on it's current market cap of $5,677,800,662 USD by CoinMarketCap. 

Investing in VeChain

VeChain is available to trade in many major exchanges over the world. The top exchanges for VeChain based on volumes are Binance, KuCoin, Bitmart, Huobi Global, etc.  

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. I believe VeChain has a good future. 

Investing in any type of cryptocurrency is a subject to high market risk and high volatility. If you are ready to take the risk of cryptocurrencies then you can invest in VeChain also.