VeChain was founded in 2015 by Sunny Lu, the former Chief Information Officer (CIO) of Louis Vuitton China. It started as a subsidiary of Bitse, one of China’s largest blockchain companies, and is among the few blockchains that already have a substantial customer base among established companies.
VeChain was created by VeChain Tech a software company based in China. VeChain Tech is coordinated by VeChain Foundation a nonprofit organization based in Singapore.
VeChain Blockchain is called VeChain Thor and it's actually a modified Ethereum blockchain that has been optimized for supply chain solutions.
VeChain used a consensus algorithm called proof of authority whose creation is credited to Ethereum co-founder and Polkadot founder Gavin Wood. Proof of authority chooses which network participant produces a block based on reputation.
The VeChainThor blockchain uses Proof-of-Authority (PoA) consensus, in which there will be 101 Authority Masternodes at the launch of the platform. All Authority Masternode owners need to be vetted to ensure that they have a legitimate identity,
Authority nodes must stake a minimum 25Million VET (after 1:100 token split when the main net launches) collaterals and a server that guarantees a certain minimum level of performance and availability. More importantly, Authority Masternode owners need to prove that they can make a significant contribution to the VeChain ecosystem in their fields. Also, Authority Nodes are entitled to the highest weight per vote in the community voting based on the VeChain Governance Model.
Authority Masternodes are rewarded by the network for maintaining the VeChainThor blockchain and participating in the platform governance. In addition to the VeThor that is automatically generated from the holding of VET, 30% of the VeThor consumed by transactions in a block will be paid out to Authority Masternodes equally, while the other 70% will be burned. In VeChainThor Authority Masternodes do not compete for the block producer, as the block producer is selected on a random basis by the program.
VET is the token used when transactions on decentralized applications happen on VeChain’s blockchain. It can be used to store and transfer value and is available to the public for investment. VET can be bought on different crypto exchanges.
VeThor token (VTHO) or energy token powers transactions on VeChain where it is used as gas. When data is added to the blockchain through data or financial transactions, it needs units of computational power. The VTHO token covers the computational gas costs for all transactions in the blockchain. However, the cost will not be the same all the time as it depends on the size of the transaction being processed.
The major difference between VET and VTHO is the way both tokens are used. Even though they are used on the same platforms, they differ in their usage. The more VET a user has, the higher priority he gets. On the contrary, the VTHO token is the gas cost that confirms decentralized applications. In a way, the more VET tokens a person has, the more VTHO tokens he gets. As in cryptocurrencies like Bitcoin, VET is used to store and transfer value, while VTHO is considered energy tokens.
VeChain is a platform built to provide a holistic solution to businesses looking to improve their efficiency and develop new ways to do business and manage their operations. To help it accomplish this, VeChain has built a wide range of tools and features that make it an attractive option for businesses. These include:
Fee Delegation Protocol (VIP 191)
VeChain’s unique fee delegation protocol allows a company to have the gas fees required to use the network handled by a smart contract and designated gas account. This means a company can pay to use VeChain’s one-stop-shop service platform, ToolChain, and utilize the network as they would use any other digital service and pay for the data they use/produce. This drastically enhances the attractiveness of the network as a company no longer has to manage the crypto aspect itself but still benefits from its public blockchain as a service.
Building new blockchain-backed solutions can be a challenging endeavour, which could require firms to hire blockchain engineers, smart contract developers, security specialists, and more.
But with VeChain, firms can easily leverage a range of turnkey software and hardware solutions that can be rapidly deployed with almost no experience. This helps businesses get up and running with their projects as fast as possible and at a minimal cost.
Unlike many smart contract-capable blockchains, the VeChainThor platform is incredibly efficient and uses just a fraction of the energy that competing platforms use due to its master node-based consensus system. It achieves this while maintaining a similar level of security.
According to VeChain, the VeChainThor blockchain’s annual energy usage is equal to just 2.4% of the energy expense of producing a single bitcoin.
This efficiency also translates to the cost of operating on the blockchain, which is several-fold lower than on Ethereum, helping to maximize the cost-efficiency of running blockchain-enabled applications.
VeChain has established strategic partnerships and business relations with a huge number of prominent firms — many of which are using its technology to improve their business efficiency. Just some of the many names on its list of partners include BMW, Grant Thornton, Trusted Food, Walmart, and Copper Dog.
Furthermore, VeChain’s channel partners DNV and PwC use white-labelled versions of VeChain’s technology, repackage it and utilize it for their own client networks. Solutions such as DNV’s MyStory and PwC’s AirTrace use VeChain’s underlying infrastructure while packaging their respective platforms as their own service offerings.
Currently Attwood Import Export, recognized as the largest premium alcoholic beverage importer and distributor in Cambodia, recently announced the implementation of an entirely new kind of security sticker built using the VeChainThor blockchain, the NFC-enabled ‘Attwood Blockchain Sticker’ (ABS). Attwood Import Export is a leading company that has exclusively imported and distributed luxury brands for almost 30 years, notably, Johnnie Walker, Hennessy, Champagne, Moet & Chandon, Terrazas, Chandon Sparkling, Budweiser beer, Corona beer, and Coronita beer.
By applying ABS to each bottle of product, Attwood enhances its liquor distribution capabilities, drastically improves transparency, and guarantees product authenticity to partners and consumers. With key data hashed on the blockchain, salient product information becomes immutable and trustworthy, allowing clients and customers to verify the origin and authenticity of products with a simple scan of a smartphone, preventing fraud and protecting consumers.
Currently, VET tokens can be purchased at those big exchanges:
1. Binance Exchange - you can purchase VET using your mobile phone or desktop. You only need to follow the step as instructed. You can also receive a 25% discount on trading fees using Binance Coin (BNB). Use the link above for a bonus 10% discount.
2. Crypto.com MCO/CRO-- this is a favourite for many reasons, as you can earn interest on a wide variety of coins, as well as apply for a crypto debit card. This operates similarly to a pre-paid Visa card, where you top up before use, however, you can choose to top up with cash or crypto. For example, you can transfer cryptocurrency to the card and spend it like cash, or let it sit in the account and earn interest. Rates of interest again vary from 2% up to 10% or more. New investors may receive up to $50 when using the above link to create a new account.
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For the Aussies: Coinstash is an Australian crypto exchange based in Brisbane. New users can get $10 free on signup using this link
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