VeChain (VET) is one of the largest and most well-known cryptocurrency projects focused on business applications and solutions for the corporate sector. Unlike most cryptocurrencies that focus on financial markets or decentralized applications, VeChain is aimed at improving supply chains and logistics by providing innovative solutions using blockchain technology. In this review, we will take a closer look at the VeChain token, its features, potential, and current market position.
What is VeChain?
VeChain was founded in 2015 in Singapore and has since become one of the leading platforms for creating blockchain-based solutions for businesses. The main goal of the project is to improve and automate supply chains, which can significantly increase efficiency and reduce risks for companies. VeChain uses blockchain to track goods, manage supply chain data, and prevent counterfeiting.
The project actively collaborates with major companies in various industries such as logistics, pharmaceuticals, food industry, manufacturing, and others. One of the key aspects is the use of smart tags (e.g., NFC and RFID) that allow real-time tracking of the movement of goods and products through the supply chain, providing information about each stage of the journey from the manufacturer to the end consumer.
Key Components of VeChain
1. VeChainThor Blockchain: This is the public blockchain platform on which the VeChain ecosystem is built. It uses the Proof-of-Authority (PoA) consensus algorithm, which makes it more scalable and suitable for business applications. Unlike Proof-of-Work (PoW) or Proof-of-Stake (PoS), PoA allows network participants to have the right to create new blocks based on their reputation and trust, which also reduces energy consumption.
2. VET and VTHO Tokens: Two types of tokens are used in the VeChain ecosystem — VET (VeChain Token) and VTHO (VeChainThor Energy).
– VET is the main token of the network, used for storing value and participating in network governance.
– VTHO is used to pay for transactions and computational operations within the network, similar to gas in Ethereum.
3. VeChain ToolChain: This is a set of tools that enables companies and developers to create decentralized applications (dApps) and implement solutions based on VeChain. It is a tool for simplifying the adoption of blockchain technology in corporate processes.
How VeChain Solves Business Problems
VeChain addresses several key challenges faced by companies in different industries:
– Counterfeiting and Fraud: Blockchain creates an immutable record for each product, making counterfeiting impossible. This is especially important for industries like pharmaceuticals, where counterfeit drugs can have serious health consequences.
– Transparency: Blockchain technology allows companies to gain complete transparency about the origin of goods, their quality, and shipping conditions. This also helps improve customer relationships and increase trust.
– Supply Chain Management: VeChain improves the efficiency of supply chain management, reducing risks and speeding up transactions.
– Automation: Smart contracts automate processes such as verifying product authenticity, payments, and much more.
Partnerships and Use Cases of VeChain
One of the factors that makes VeChain unique and attractive to investors is its real-world application across various industries. Some of the major partners of the project include:
– DHL: The logistics company uses VeChain for tracking shipments and improving the delivery process.
– BMW: The automaker uses VeChain technologies to improve product quality and supplier relationships.
– Walmart China: In partnership with VeChain, Walmart uses blockchain to track food products in real-time, enhancing safety and transparency.
These partnerships show that VeChain’s technology is being used by major global companies and has potential for scaling in various industries.
VeChain Token Economics (VET)
VET tokens are used for network governance and value storage. This means that VET holders can participate in voting and making important decisions about the ecosystem’s development. However, VET is not directly used for transactions on the network; for this purpose, VTHO is used. This separation helps reduce transaction costs as VTHO is generated automatically through holding VET.
Maximum Supply: 86.71 billion coins
Circulating Supply: 80.99 billion coins
Market Cap: $4.09 billion
Price at the time of writing: Around $0.05 per coin
The token’s ATH was around $0.28 in 2021, followed by a prolonged downturn, where after finding a bottom at $0.01, the price rose by about 500% and is currently testing $0.05 as support. The trend is upward, and at current prices, there is a chance for further growth during the altcoin season, making this a promising project.
Conclusion
VeChain is one of the most innovative and promising platforms for solving real business problems using blockchain technology. Existing partnerships and use cases in real-world industries highlight the importance and potential of this cryptocurrency. However, the project also faces challenges related to competition and regulation, which will define its future. For those looking for promising projects in the cryptocurrency space with real-world applications, VeChain can be an interesting choice.
