Did you know that VeChain blockchain has been adopted by numerous enterprise clients and partners, including the Ultimate Fighting Championship (UFC)? Did you also know that the total number of addresses seen on the VeChain blockchain is over 2 million (2,046,551 at the time of writing)? Why have many investors, businesses, and organizations shown great interest in VeChain blockchain and its ecosystem tokens?
This article answers that question. It gives you the history and operating principles of VeChain. The article equally explores VeChain’s ecosystem tokens and the many use cases and benefits associated with using the low-carbon blockchain protocol. Then, you will understand why VeChain prides itself as the leader in real-world blockchain applications. For a technology that has only been around since 2015, you won’t be wrong to say that these statistics are stunning feats for VeChain.
What is VeChain Blockchain?
The VeChain blockchain or VeChainThor is a specific type of blockchain designed to support smart contracts and facilitate the tracking and management of supply chains, identities, and assets. It is primarily aimed at enterprise use cases but it can also benefit individuals.
In other words, VeChainThor, founded by Sunny Lu, is the world’s leading enterprise-grade Layer 1 blockchain providing the sustainability revolution using Internet of Things (IoT) technologies, with a highly scalable and low-carbon smart contract-enabled platform.
The VeChain blockchain has the potential to revolutionize a variety of industries and offer tremendous value to its users. It has been used in many areas including supply chain management, asset tracking, and identity verification. As more companies and individuals start using the VeChainThor public blockchain, it becomes more and more important to understand how they work.
The VeChain blockchain uses an uncommon consensus algorithm dubbed Proof of Authority (PoA). PoA, which demands nodes to be authorized to participate in blockchain consensus, addresses enterprises’ common concerns of inefficient upgrades and waste of energy.
With the PoA concept, node validators do not need to spend vast amounts of resources to compete. Nodes are given equal chances to publish new blocks and gain rewards on VeChainThor once authorized. In terms of network bandwidth, PoA is highly efficient.
With this PoA consensus algorithm, deciding on block producers on the VeChain network takes very little time. This results in high throughput on the blockchain network. This entails the processing of numerous transactions per second (TPS). In addition, the PoA consensus adopts the block finality mechanism which grants qualified blocks an absolute safety guarantee.
VeChain Blockchain Native Tokens
It bears mentioning that there are 3 native currencies in the VeChain ecosystem, namely VET, VTHO, and VeUSD.
VET is the primary and native token of the VeChain blockchain created in 2018. It is a digital asset used to facilitate transactions and store value on the VeChain platform. VET is traded on various cryptocurrency exchanges and can be bought and sold like other cryptocurrencies. VET has its total and maximum supply to be 85,985,041,177 and 86,712,634,466 respectively.
At the time of writing, VET is the 36th-largest cryptocurrency according to Coinmarketcap, with a market capitalization of approximately 1.18 billion dollars. VET, which is changing hands at $0.0163 at press time, attained its all-time high of $0.2782 in April 2021. Notably, VET generates VeThor (VTHO) tokens.
VeThor, represented by VTHO, is the secondary token in the VeChain blockchain ecosystem created in 2018. VTHO, consumed when making transactions or uploading data to the blockchain, has a total supply of 57,742,835,855. At press time, VTHO is trading for $0.0009 per coin, with a market cap of $53.7 million.
The third VeChain-related native currency is VeUSD. VeUSD is the first stablecoin of the VeChainThor Blockchain created in 2022. VeUSD has a total supply of 5,581,846. Every token is backed by a physical reserve of fiat money, making it redeemable at any time. Holders of the stablecoin are 2,973, at the time of writing.
Read also: What is Cardano (ADA)?
History of VET and VeChain
It all started in 2015 when VeChain was founded as a supply chain management platform. Back then, the company focused on helping companies track and manage their products as they made their way through the supply chain. They use a combination of RFID technology and a proprietary blockchain to do this.
As the company grew, it became clear that there was still a lot of untapped potential in the blockchain space. In 2017, VeChain rebranded as a Blockchain-as-a-Service (BaaS) platform and launched its mainnet. This allows companies to build and deploy their decentralized applications (DApps) on the VeChain blockchain.
The mainnet launch was an important milestone for VeChain as it sparked massive interest in the project from investors. Consequently, the value of VET, the native token of the VeChain blockchain, started to increase while more companies started using the platform.
As the years went by, VeChain grew more and more. They scored partnerships with major corporations in various industries including luxury goods, agriculture, medicine, energy, and even governments. They also launched many successful DApps and continue to improve the scalability and security of their blockchain.
Today, VeChain is widely regarded as one of the most successful and influential blockchain projects in the world. Their mainnet is used by a variety of companies and organizations, and VET has a strong following among cryptocurrency enthusiasts. As the adoption of blockchain technology continues to increase, it is believed that VeChain will continue to play a leading role in shaping the future of the industry.
Use Cases of VET Token and VeChain
One interesting thing about VeChain is its wide range of use cases and applications. The main use case of VET and VeChain is in supply chain management. The VeChain blockchain was designed to make it easier to track and manage products as they make their way through the supply chain.
This can help companies increase efficiency, reduce costs, and ensure the authenticity and quality of their products. For example, a luxury-goods company could use the VeChain blockchain to track the production and distribution of its high-end handbags to ensure they are not counterfeited or tampered with.
Another important use case for VET and VeChain is identity verification. The VeChain blockchain can be used to securely store and verify the identity of individuals or organizations. This is particularly useful in industries where authentication is critical, such as the banking and healthcare sector.
Asset tracking is another important use case for VET and VeChain. The VeChain blockchain can be used to track the ownership and movement of various physical and digital assets. This can help businesses and individuals track their assets and prevent fraud or error. For example, a shipping company could use the VeChain blockchain to track the movement of cargo containers and ensure they are not lost or stolen.
These are just a few examples of the many use cases for VET and VeChain. The potential applications of the VeChain blockchain are enormous, and as the adoption of blockchain technology continues to increase, we are likely to see more innovative applications of VET and VeChain in the future.
Read also: What is Litecoin?
Now you know why the VeChain blockchain and its ecosystem tokens have grown so fast. The VeChain team led by Sunny Lu, recognizes that blockchain technology is one of the major foundations for the next generation of information technology and other emerging technologies including Artificial Intelligence (AI), Internet of Things (IoT), 5G, and more.
Hence, the immutable and tamper-proof VeChain blockchain is focused on lowering the barrier and enabling established businesses with blockchain technology to create value and solve real-world economic problems.
Over the years, myriad industries have adopted the VeChainThor technology due to its ground-breaking features and applications to better position their businesses. Owing to this, one can say that VeChain and its native tokens are worth keeping tabs on.
Read also: A Deep Dive into ChainLiink
Credit: Ndianabasi Tom
A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).