VeChain VET Coin
VeChain Software aims to encourage the network to run the platform by encouraging companies to use decentralized applications, which allow companies to create and manage decentralized applications.
VeChain’s mission is to foster better digital collaboration between organizations by providing new tools that enable efficient data transmission and supply chain management.
VeChain was originally a supply chain management solution. In 2018, the VeChain protocol was renamed VeChainThor, expanding dapps to provide more data solutions.
In 2017, counterfeit luxury goods caused $30 billion in losses to the luxury goods industry. Even in the crowded crypto market, VeChain’s anti-fraud technology is becoming more and more popular. It can help consumers verify that the goods they buy are authentic, and enable companies to gain greater transparency in the manufacturing and delivery process.
What Is VeChain?
VeChain is a blockchain platform designed to improve supply chain management and business chain processes. The platform aims to improve supply chain management and information flow through the use of distributed ledger technology (DLT).
VeChainToken (VET) and VeChainThor Energy (VTHO) are two different tokens on the Vechain platform. The first is used to transfer the value of VeChain, while the second is used as energy to power smart contract transactions.
VeChain is an open-source blockchain that helps simplify supply chain management. It was created to prevent fraud and stop counterfeiting. Big companies are already using it to track everything, including wine production and car manufacturing.
The process is simple: give each product a unique identification, then use the sensors to track what’s happening at each stage of the supply chain. Businesses can ensure that products are handled properly, and consumers can verify that their purchases are legal.
How Does VeChain Work?
VeChain aims to allow any company to create new types of dapps. The VeChain team has created a component called VeChain ToolChain to make it easier to create dapps. VeChainThor uses a consensus mechanism called Proof of Authority (PoA) to organize the way transactions between users are verified and added to the VeChain public ledger.
The trusted master node is the user who adds and verifies transactions to the blockchain. In order to become one of them, you must have at least 25 million professional training and identification information for the VeChain Foundation.
The PoA mechanism can be used to quickly process a large number of transactions. However, its drawback is that it requires a central agency to inspect and authorize those who are authorized to engage in transaction processing. VeChain’s PoA platform is optimized to provide a more randomized and distributed block generation mechanism.
VeChain has two native tokens that allow its software to work: VET and VTHO. They are used to store, transfer and execute values. This design isolates the volatility of VET coins from the computational cost on VeChain, allowing VeChain applications (because the VTHOR offering can be adjusted to keep the transaction price-stable) to charge a flat fee.
Similar to the Ethereum blockchain using ETH and gas, calculations made by miners on the network will be paid for by VTHO. More complex procedures require more VTHO. Finally, nodes holding VETs are eligible to vote for network upgrades and receive a VTHO per block.
Why Should I Use VeChain?
VeChain may appeal to users because it allows companies to create applications for supply chain management and anti-counterfeiting measures.
VeChain’s dual token design means that businesses can also benefit from fixed transaction fees. If investors believe that enterprise blockchain will eventually prevail, they may consider adding VET tokens to their portfolio.
What are you able to do with VeChain?
VeChain has developed a sensor chip that can be used to connect physical products to its blockchain platform. This system is only intended for enterprise-wide adoption. The system’s real-world technology has been in operation since 2015 when an NFC tracking chip was developed for use in the handbags of luxury French brands.
VeChain later used this technology to trace the history of Renault Motors cars in 2016. The system keeps track of everything that happened since the car was on the road. Car buyers who wish to have a full vehicle account can access it. This will help them avoid fraud and odometer errors. VeChain has announced the establishment of partnerships with BMW and other companies in Europe and Asia. VeChain also mentioned that the technology is applicable to other industries and suggests another important collaboration.