VeChain is a blockchain platform that aims to improve supply chain and commercial processes. Its purpose is to leverage distributed ledger technology to streamline these operations and information flow for complicated supply chains (DLT).
VeChain Token (VET) and VeChainThor Energy (VTHO) are two different tokens on the Vechain network. The former is used to move currency over the VeChain network, while the latter is used to power smart contract transactions as energy or “gas.”
How VeChain Can Be Used
The platform can track the quality, authenticity, storage temperature, transit medium, and the final delivery of a medicine pack or an alcohol bottle from the manufacturing site to the end customer. VeChain employs smart chips, RFID tags, and sensors that broadcast important information onto the blockchain network, viewed in real-time by authorized stakeholders.
Sensors allow all product parameters to be continuously monitored and any problems conveyed to the appropriate stakeholders. Manufacturers and customers are notified if a medication packet is stored outside of a defined temperature range, allowing for better service and quality control.
Another example of the VeChain platform can allow car owners to control their data and use it better to negotiate terms and policies with their insurance carriers.
History of VeChain
Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China, established VeChain in 2015. It began as a subsidiary of Bitse, one of China’s prominent blockchain startups, and is one of the few blockchains with many established companies as customers.
The VEN coin ran on the Ethereum network at first. In 2018, VeChain renamed itself and moved to its blockchain. The VEN blockchain was renamed VeChainThor (VET) as part of the rebranding.
VeChain has formed strategic alliances with several companies throughout the years to achieve this goal. One of these is a deal with PricewaterhouseCoopers (PwC) to leverage VeChain’s blockchain-powered solutions to improve product verification and traceability for the accountancy firm’s clients.
VeChain’s Blockchain Platform
The VeChainThor blockchain platform is a public blockchain designed for “mass adoption by businesses.” VET and VTHO are the two tokens available. The VeChain token, or VET, stores value or “smart money” in smart contracts. In other words, VET will be used in decentralized application transactions on VeChain’s blockchain. It is open to the entire public to invest in.
The VTHO cryptocurrency is also known as VeThor Energy and stands for VeChainThor Energy. It is used to fuel VeChain transactions and is the same as the cost of completing transactions on the VeChain blockchain.
Developers must budget for a particular amount of underlying tokens (which are not visible to the public) to conduct transactions for their decentralized applications, comparable to Ethereum’s ether and NEO’s “gas.” The two-token system was designed for effective governance and a predictable economic model for decentralized application developers, according to VeChain’s white paper.
Because the price of ether, Ethereum’s native gas token, is variable, it currently lacks such a model. As a result, developers must estimate how much ether is needed for a transaction. If their estimate is inaccurate, the transaction will fail.
Should I Invest In VeChain In 2022?
Despite its lows in mid-March, VeChain showed potential as new improvements to the protocol emerged.
Draper University and VeChain announced their relationship on March 23, creating a Fellowship and Web3 accelerator programme. After a slow start to the year, the crypto market began to show signs of life at the end of March. As a result, VeChain’s price increased, and by March 31, 2022, the coin was trading at the peak of $0.08906.
The recovery, however, was just temporary. Worse was to come in May when a market-wide meltdown put most cryptocurrencies into freefall: VeChain’s value plummeted to $0.02412, its lowest in over a year.
VeChain, on the other hand, is showing a lot of potentials as the crypto markets recover. The project announced a collaboration with Amazon Web Services to develop the VeCarbon emission management software-as-a-service (SaaS) solution, which will aid China in meeting its 2060 carbon neutrality objective.
Furthermore, on May 10, 2022, the Foundation released a new report stating that its treasury was in good shape, with over $1.2 billion in stablecoins, ETH, BTC, and VeChain’s native currency.
VeChain is also an excellent investment because it is pretty affordable. The price has dropped more than 80% from it’s all-time high and is now at its lowest level since February 28th. As a result of the drop, the coin now trades at a considerable discount. Bear markets, historically, do not persist indefinitely. As a result, there is a chance that its price will recover.
Finally, despite the token price faltering, VeChain price is still rising. VeChain, for example, has forged alliances with some of the world’s most powerful corporations. For example, it has cooperated with companies including Direct Import Goods, PriceWaterhouseCoopers, and Renault. These collaborations are anticipated to grow.