The VeChain network is popular due to its focus on the supply chain industry, where emerging technologies such as the network can transform the trillion-dollar industry. It also has a range of uses other than supply chain solutions, including the automotive industry and digital carbon ecosystems. The PoA consensus mechanism facilitates these utilities with high throughput and increased scalability for the VeChain network. The VeChain network also has a dual token economic model of its primary token, VET, and the VTHO token to avoid increases in transaction costs when the token’s value rises. This mitigates against potential volatility that makes the network suitable for large enterprises. The VeChain Explorer mainnet was released in 2018 and has gained significant traction by partnering with reputable companies such as BMW, DHL, Renault, and BYD.
Briefly about VeChain
The CEO, Sunny Lu, started a blockchain called VeChain to disrupt the supply chain industry by providing transparent and actionable data. It digitises people, products, and events by linking them with an API to the system application layer connecting the blockchain with real-time information. The VeChainThor primarily focuses on supply chain management but also has real-world use cases in various industries including the automotive industry. It also enables companies and developers to build and run decentralised applications(Dapps) for ascertaining the quality and authenticity of their products. Companies utilise Vechain's ToolChain, to build their blockchain solutions while the platform also supports smart contracts.
Vechain is a blockchain focusing on enhancing the tracking of products and processes.CryptoLists.com
The VeChain network is among the pioneer blockchains catering to enterprise-level clientele by improving the supply chain and product lifecycle management through distributed ledger technology (DLT). The VeChain network utilises several technologies in streamlining the supply chain, including Ethereum to enhance its security. Its integration with the Internet of Things (IoT) ensures easy data monitoring during consensus while the Radio Frequency Identification (RFID) tags and monitors data tracking on shipments and a real-time update on information on blockchains. The Proof of Authority (PoA) consensus ensures that nodes form a pool of authorised nodes to control publishing blocks and rewards hence all nodes have an equal opportunity for approvals and rewards. The VeChain network also utilises a dual token economy for public investment and smart contract execution for effective governance and a predictable economic model.
Utility of VeChain?
The VeChainThor serves as a public blockchain for mass business adoption by making processes and flow of information efficient for multifaceted supply chains via Distributed Ledger Technology (DLT). Its Radio Frequency Identification (RFID) tags and sensors assist in tracking data during shipments in real time and monitor complex supply chains promptly. It integrates with the Internet of Things (IoT) to track a large set of data through consensus. Companies also utilise their blockchain-as-a-service to build blockchain solutions and perform smart contracts. Users of VeChain also earn staking rewards through passive income earned from staking VET.
VeChain
Release Date: August 12, 2018
Advantages at VeChain
+ The VeChain has strong partnerships with reputable and popular corporations.+ It provides solutions that apply to various industries.
+ It already hosts several projects from various companies.
+ The Proof-of-Authority Consensus ensures less energy waste.
Disadvantages
- Vechain requires a high amount of deposit to run nodes- It faces significant competition from large and well-established technology companies.
- It has a relatively high withdrawal fee to exchanges.
- It is relatively more centralised by the VeChain foundation.
Costs
▪ Rated at 9/10VeChain's dual token economic model ensures no increased transaction costs whenever the value of a token rises. The VeThor(VTHO) token is used in facilitating the network's transactions, including smart contracts. The standard transaction fee is 21 VTHO but users can increase this transaction fee to ensure the network prioritises their transaction. The network also charges a withdrawal fee of 100 VET.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 9/10
VeChain has established itself in the cryptocurrency industry through active partnerships with reputable corporations such as BMW and Renault. It has significantly streamlined the supply chain management with transparency while it has also evolved beyond the logistics supply chain to a fully-fledged dApps platform. Enthusiasts praise its good governance and unique dual token economic model to accommodate large organisations and enterprise-level clientele. The Proof of Authority consensus mechanism has enabled it to have an efficient bandwidth with fast transaction speeds while having less energy consumption.
The VeChain community is still coming to terms with the 2019 hack that caused uncertainty. There are also concerns over the significant competition the Vechain network faces from the large traditional technology companies such as IBM and SAP. More optimistic members look forward to the launch of PoA 2.0 which attracts more high-profile clients and sustain the momentum to keep the network ahead n the supply chain industry.
FAQ
Who created the VeChain Blockchain?
Sunny Lu created the VeChainThor and launched its mainnet in 2018.
Is VeChain Blockchain proof of stake?
No, it utilises a Proof of Authority consensus mechanism that also addresses concerns on inefficient upgrades and waste of energy.
Will VeChain Blockchain overtake Ethereum?
Sunny Lu once claimed that the VeChain can overtake Ethereum. Despite the significant progress and partnerships, there is no guarantee of fulfilling this.
Where can you buy VeChain's primary token, VET?
The top cryptocurrency exchanges to buy VET include:
Binance
Crypto.com
Kucoin
What will VeChain PoA 2.0 offer?
The VeChain Foundation is strategising on PoA 2.0 to address particular challenges on VeChain. This will enhance support for a growing number of business use cases on-chain. It will offer a safety guarantee on blocks and transactions
VeChain 2.0 will significantly reduce disruptions on the network with more stability
It offers faster transaction confirmation for applications.
Screenshots from VeChain
Native crypto coin for this blockchain? Learn more about VeChain (VET)
VET is the native coin for VeChain. It is therefore also worth reading more about that on the link below.›› Read our full VeChain review here
