What is VeChain? – A Detailed Review
VeChain is a cryptocurrency that you might not be familiar with. After all, there are so many altcoins these days that it is nearly impossible to keep up with them unless you’re a loyal supporter or enthusiast.
VeChain is an interesting technology. However, ‘interesting’ is not necessarily a good motivation to invest in stock or cryptocurrency without having enough information.
Therefore, we will give you a detailed review of VeChain and its tokens.
What Is VeChain (VET)?
VeChain is a software program that aims to incentivize a network of computers to operate a platform that allows enterprises to create and run decentralized applications (DApps). VeChain aims to improve digital cooperation between organizations by providing new solutions for effective data sharing and supply-chain management.
VeChain, in a nutshell, integrates blockchain technology with the ‘Internet of Things (IoT)’ to enhance the supply chain process for businesses. Initially designed as a supply chain system operating on the Ethereum blockchain, VeChain released its blockchain – VeChainThor in 2018.
This open-source network offers innovative features, including allowing ecosystem members to develop DApps that solve real-world problems to promote real-world adoption.
Partnerships
VeChain has several partnerships with a lot of well-known companies. Below we will show only a few of them and their importance.
Walmart
- Walmart is a worldwide retail company that owns and operates a network of hypermarkets. As a result, in 2019, it formed a partnership with VeChain. Consumers in China can track food delivery via an app thanks to a cooperation between VeChain and Walmart. As a result, product information and traceability data such as storage conditions, delivery time, pick-up time, and other details are provided.
BMW
- According to the BMW-VeChain ecosystem, growth comes from the formation of links that provide grouped value. One example is when the platform announced a partnership with BMW. By employing a distributed ledger mechanism to maintain information about the product, such as past repairs, mileage, and other additional services, the agreement aims to secure BMW’s products against counterfeiting.
The Chinese Government
- Under the strict Gui’an restrictions, the Chinese government has also announced a partnership with VeChain. This partnership intends to integrate blockchain technology into the Chinese agriculture industry in order to help meet the country’s large demand for olive oil. A rise in extra virgin olive oil consumption is fueling a huge demand for the product, driven by a rising tide of light meals and healthier nutritional alternatives for China’s increasing middle class.
How Does VeChain Work?
We are going to explain how VeChain works in three parts.
Real-world Tech
VeChain works by linking physical products with a unique identity, often by RFID (radio frequency identification), QR Codes, or NFC (near-field communication). Sensors collect data at every level of the supply chain, which is then stored and connected to the product’s identification. These are sensors designed by VeChain that are manufactured by companies such as Bosch and Qualcomm.
Because it uses blockchain technology, the data that has been recorded cannot be altered. This enables an accurate record of what circumstances were like across the supply chain. If something goes wrong, such as items being transported to the wrong location, the blockchain record will reveal precisely where the mistake occurred.
The Cryptocurrency
Before launching its own network in 2018, VeChain issued coins (known as VEN) on Ethereum. With the launch of this new platform, VeChainThor was renamed (known as VET). The VeChain system accepts VET as a form of payment. When it comes to accessing the blockchain’s resources, the more VET a person or company has, the greater priority it has.
VET can also be used to create VeThor or Thor Power (VTHO), the second type of token that can be used to access supply chain technologies. In order to upload more information to the blockchain, a firm that wants to use VeChain’s tracking for its supply chain must pay VTHO.
The Platform
A mainnet that is used to perform all of this may also be used by other blockchain projects to launch their own coins on VeChain’s infrastructure (similar to Ethereum). This platform has helped VeChain’s transition from supply chain to DApps.
Features Of VeChain
VeChain provides a variety of services to businesses all around the world. It was one of the first blockchain startups to strike a balance between dependability and efficiency. VeChainThor has incorporated several technologies, including KYC, to guarantee smart contracts support it in order to provide transparency.
Let’s have a look at some of its important features:
Inherent Governance Tools
VeChain mixes decentralization with centralization to achieve a balance in service delivery. Decentralization, which is at the heart of blockchain technology, has been shown to have scalability concerns in several blockchain networks, including Bitcoin and Ethereum. VeChain balances this by developing VeChainThor, which intends to provide a governance system with continuous integrations and constant development.
The governance architecture and principles are intended to be clear, inclusive, transparent, scalable, and efficient. They improve the ecosystem’s overall performance and advancement.
Proof-of-Authority (PoA)
In contrast to traditional protocols such as Proof-of-Work (PoW), Proof-of-Stake (PoS), and Proof-of-History, the VeChainThor blockchain uses the Proof-of-Authority (PoA) consensus mechanism.
PoA improves governance framework transparency by enabling valid identity verification of the 101 validators (Authority Masternodes) approved by the ecosystem. Each authority master node goes through a KYC procedure in accordance with the network’s rules.
The following are some of the characteristics of the VeChainThor’s PoA mechanism:
- Low energy cost
- Block validation speed has been increased
- The network is not completely reliant on authoritative master nodes
- The side-chain capability has been enhanced
- The platform has 101 nodes, which is less than Ethereum and Bitcoin, opening the door for enhanced network speed and dependability
- IoT solutions are supported
- VeChain merged IoT on the blockchain, opening up a world of possibilities
Is VeChain (VET) A Good Investment?
The fact that so many high-profile VeChain blockchain customers have witnessed significant business benefits implies a vast amount of value. As a result, VET, VeChain’s native token, should potentially rise in value in proportion to the network’s use and demand.
VeChain, like many other cryptocurrencies, has a market cap of 86.7 billion. Every token has already been minted. As a result, VeChain investors are betting that capital inflows into VeChain through further partnerships and increasing usage would push up the price of VET.
Overall, VeChain is a cryptocurrency that powers a network with revolutionary potential. Of course, because they are extremely volatile, there are dangers associated with any cryptocurrency investment.
VeChain, on the other hand, is a fascinating coin to consider purchasing.
Does VeChain Have A Future?
The future of VeChain is fuzzy compared to the crystal clear potential of major crypto assets such as Bitcoin, Ethereum, EOS, Ripple, and Litecoin.
It has enormous disruptive potential as an enterprise solution for business processes and supply chains. However, investing in it might be dangerous because no organization will ever use the technology. It would include equipping all systems with VeChain RFID tags, a large investment in VeChain innovation and development, and leveraging the blockchain platform for all parts of a firm. This is a significant risk for huge corporations with numerous moving pieces.
How High Can VeChain Go?
VET, the currency of the China-based distributed ledger network, VeChain, has declined in value by 91% since the beginning of April and is currently trading for $0.024.
Throughout March, the currency showed indications of gathering some upward momentum and a move in the larger crypto market toward a more bullish sentiment. However, the coin has been on a negative trend since last November. According to CoinMarketCap, the current price gives it a market value of $1.78 billion, putting it in the 31st position on the list of the largest by market capitalization. Last year it was in the top 20.
VeChain has a lot of capacity to grow in the future, and we estimate it might reach a maximum price of $3.70 in the short term (next five years). After doing some research on the coin and also on the market, we can see how much support VET has. That might be one of the factors that will contribute to the growth of VET in the future. We predict that by the end of this decade, VeChain will exceed $200.
Where To Buy VeChain (VET)?
We are going to show the best exchange platforms you can buy VeChain.
Binance
Binance is considered one of the world’s largest cryptocurrency exchanges. The advantages of buying VeChain (VET) in Binance that distinguish it from other exchanges are reduced costs and improved liquidity, allowing you to purchase and sell rapidly to capitalize on market-moving news.
KuCoin
KuCoin is a popular name in the market, and it’s also one of the most cost-effective in terms of fees and trading prices. Since its foundation, its only usage has been for crypto-to-crypto trading. It currently provides various services, including Peer-to-Peer (P2P) exchange and credit/debit card purchases. KuCoin offers VeChain (VET) trading along with over 300 other popular coins.
Huobi Global
Huobi Global, which was created in 2013, has grown to become of the world’s largest platforms. Houbi currently has over 5 million users from over 130 countries, making it one of the most popular VeChain (VET) trading exchanges.
Uphold
A top US exchange, Uphold is an experienced and incredibly inventive trading platform that should be able to suit your demands for trading across a variety of cryptocurrencies, including VeChain (VET). Aside from the trading platform’s simplicity of use and unique features, what distinguishes the firm is its industry credibility.
How To Buy VeChain (VET)?
We are going to show you three steps on how to buy the VET coin.
Step 1: Open an Exchange Account
The first step is to open an exchange account. We suggest doing so in Coinbase or Binance. They both have similar steps, but we are going to show you how to do it in Binance. After you choose the platform and open the account, you must verify it using a photo of your ID.
Step 2: Deposit Funds
After opening the account and verifying it, the next step is to deposit funds. There are three deposit alternatives accessible on Binance:
- Bank Card
- Advcash Account Balance
- P2P Bank Transfer
Choose your preferred option and deposit your funds.
Step 3: Buy VeChain
You may now purchase the VET coin after funding your account. To do so, click the “Trade” button and select “VET/USDT” if you wish to trade in USD. Then enter the number of VET coins you want to exchange and click “BUY.”
Takeaways
- VeChain is a software program that aims to incentivize a network of computers to operate a platform that allows enterprises to create and run DApps.
- It has a number of partnerships, including Walmart, BMW, and The Chinese Government.
- VeChain works in three parts: Real-world Tech, Cryptocurrency, and The Platform.
- VeChain’s most important features are Inherent Governance Tools and Proof-of-Authority (PoA).
- The VET coin can go as high as exceeding $200 by the end of this decade.
- Binance, KuCoin, Huobi Global, and Uphold are the most popular exchange platforms to buy VET.
