VeChain (VET) is one of the first blockchains specifically designed to meet corporate customers’ needs. The developers of this project are trying to improve the management of the supply chain and the product life cycle through the use of DLT (Distributed Ledger Technology). Notably, the platform brings a variety of new features to users, making it an ideal choice for companies looking to improve supply chain agreements and business processes.
The History of VeChain
VeChain became a reality in 2015. The aim is to disrupt the supply chain industry by making data doable and transparent. The creator of the project, Sunny Lu, is famous for his leadership work in Louis Vuitton China before starting his own company. You must imagine that addressing all of the supply chain problems a clothing manufacturer faces will inspire them to develop this unique system.
VeChain began on the Ethereum blockchain. This method is a common strategy out there as developers can showcase their concepts and raise funds to develop their blockchains. In the end, that’s exactly what VeChain does. Today, VET works in the native VeChain ecosystem. In this way, developers can provide functions that are directly suitable for business customers.
How VeChain works
VeChain uses a variety of technologies to achieve its goals of simplifying the supply chain department. For example, VeChain uses different types of radio frequency identification (RFID) tags and sensors to monitor critical data during transit. This information is transmitted in real-time throughout the blockchain.
This strategy allows any stakeholder or market participant to monitor the item to check its condition and authenticity. Above all, this method is very suitable for large and complex supply chains. VeChain can monitor these huge networks and keep companies informed of the latest developments.
Internet of Things (IoT)
VeChain is a pioneer in the integration of IoT and DLT technology. VeChain was designed from the ground up with IoT integration in mind. The Internet of Things refers to a network of billions of smart devices currently in use around the world. All of these devices are intelligent because they have some kind of sensor and can communicate data online. These days, these devices contain an incredible variety of things, from televisions to doorbells to the phone you are holding in your hand.
The integration of IoT and blockchain technology makes a lot of sense. Blockchain technology offers an inexpensive way to monitor such a large amount of data in real-time through consensus. Therefore, VeChain is not the only project exploring the merger of the two companies.
To deliver on all of its promises, VeChain must provide companies with timely and secure consensus. To this end, the platform introduced a proprietary consensus mechanism, namely Proof of Authority (PoA). This agreement provides an effective way to maintain system continuity.
The PoA consensus mechanism was set up to address the shortcomings in the Proof of Work (PoW), Proof of Stake (PoS) and Designated Proof of Stake (DPoS) mechanisms. It is crucial that PoA uses less energy. Unlike Bitcoin, which requires nodes to communicate and verify transactions, communication between nodes is not required to reach consensus on the VeChain blockchain.
VeChain relies on 101 master nodes to reach consensus. This strategy cuts trading time significantly. Surprisingly, there are no anonymous nodes on this network. You need to complete the KYC and AML ID verification before you can verify the block in this system. Developers believe this approach is essential to their balanced marketing strategy.
Interestingly, VeChain also uses major economic nodes. These nodes can vote on issues related to the VeChain ecosystem. For every 10,000 vocational training held by the main economic hub, they receive one vote.
VeChain Token (VET)
VET is the cryptocurrency that you invest in the exchange. It is shown as an increase in value on the VeChain blockchain. The token can transfer value across the entire blockchain and trigger smart contracts. This is also how users pay for transactions with Dapps that run on the VeChain blockchain.
There are currently 55,454,734,800 VET in circulation. VeChain’s system will deliver a total of 86,712,634,466 VET. By market cap, VET is among the top 30 cryptocurrencies in the world.
VET. Source: CoinMarketCap
VeChain borrowed one thing from Ethereum, which is a dual token strategy. In this type of blockchain ecosystem, one token is used for public investment and/or digital money and the other token is used for smart contract execution and programming. Examples of backend tokens in this style are Ethereum’s Ether and NEO’s GAS.
This strategy has two main advantages. The first benefit is that the system offers effective governance. Blockchain must have a governance model that includes the community. Otherwise, dissatisfied community members may end up doing hard work. The second reason to use a dual token strategy is because it offers a predictable economic model for your blockchain.
VeChainThor Energy (VTHO)
The second token used in the VeChain system is VeChainThor Energy. The token is a driving force in promoting smart contract transactions. These tokens are not publicly available. Only developers can use these tokens to pay for their contract execution costs.
Crucially, most blockchains have to be paid for by developers in order to place contracts on the blockchain. This strategy ensures that only publicly available codes get into the blockchain and can reduce spam post.
VeChain users can also put their professional education into betting for residual income. For staking, you need to keep the VET in an online wallet that stays online for a set period. The longer you invest in VET, the more you can get.
In line with VeChain’s goal of balancing centralization and decentralization, votes are given based on the number of vocational training held by individuals. People with more than a million VET should be responsible for 20% of the vote. Users who have verified their identity and have a million professional education get 30% of the vote. The rest is distributed among the communities.
Real life application
The logistics industry today suffers from information asymmetry. Although the system collects a lot of data on-site, it is not communicated optimally. In most cases, strong segregation means that the entire supply chain relies on centralized data sources. The lack of uniformity leads to a lack of transparency and delayed data transmission.
With VeChain, companies can track large amounts of data. These indicators can include elements such as quality, authenticity, storage temperature and transport status. What is impressive is that VeChain offers all of these functions through a trustworthy distributed business environment. In this way, VeChain reduces the overhead and increases the sense of responsibility.
Where to Buy VeChain (VET)
VeChain can be used on different platforms. One of the easiest ways to get a VET is with Binance. Binance is the world’s largest cryptocurrency exchange. The platform is easy to use and offers an amazing range of coins.
You can complete the registration process in less than ten minutes. If you’re new to the platform, you’ll need to link a payment method to top up your account. This can be a debit card or a credit card. You can even use your bank account details directly.
After your account is linked, you can buy bitcoins. You have to buy USDT first after you have USDT, you can enter the VET/USDT trade pair and select the amount of VET you want to trade with. Your VET will arrive in a few seconds.
How to Store VeChain
You can store VeChain in many different ways. If you’re trading your VET or just want a quick return, consider storing your cryptocurrency in the VeChainThor mobile wallet. This easy-to-use wallet gives you all the features you need. Most importantly, you can download Android and Apple devices for free.
If you are planning to make a major investment in VET or HODLing this crypto for an extended period, a hardware wallet is your best bet. The hardware wallet stores your cryptocurrency offline in the “cold storage”. This strategy prevents online threats from accessing your assets. The Ledger Nano S or the more advanced Ledger Nano X both support VeChain (VET).
VeChain (VET) Price Prediction for 2021 to 2025
Vechain (VET) Price Prediction for 2021 ($2)
As of the time of writing this article – April 15, 2021, Vechain (VET) is exchanging hands at ($0.183). VeChain is currently on a bull run and has gained 840% since January. During this period VET has also attained an all-time high of $0.19. We expect that VET will most likely hit the $2 by the end of the year.
That’s a return of 1115% if you buy the coin at the current price.
VeChain (VET) Price Prediction for 2025 ($20)
The long-term growth of VeChain is even more encouraging. The project continues to secure partnerships with companies in different industries. Also, the recent upgrade on the VeChain ecosystem is expected to reduce the high transaction fees that have plagued in recent years.
Over 74% of the total market supply of 64 billion VET coins is in circulation, and the coming years could witness a shortage of supply. This could lead to a ripple effect, and the price of $20 per token is realistic in the next 5 years.
For VeChain to reach this milestone, it will have to appreciate by over 11,091. In my opinion, the target is conservative given what lies in store for the project in the ever-growing cryptocurrency market.