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Tuesday, October 4, 2022

VeChain (VET) & VeThor (VTHO) Explained

Today we look at what v-chain or v-e-t is and how it interacts with v-thor, also known as v-t-h-o. So what is a v-chain well like many altcoins v-chain is a blockchain platform that, in this case, uses a two-token design. One coin is called a v-chain and the other is the energy or gas of the platform, and this is called v thor or VTHO now in a minute I’ll get into the relationship between vet and VTHO and which one you should buy.

But first, let’s look at what this blockchain platform actually does. So the purpose of the vegan platform is to enhance complex supply, chain management and product traceability because if you send the product from the company a to company b, you want to make sure that, for instance, one the product has not been altered during transport and two, the Product is actually in original, coming from a legit factory to ensure this feature, uses small chips and RFID tags to monitor and transmit all-important product data to a distributed ledger, making any changes to the product visible to everyone in the network.

This makes it near impossible to corrupt the data by a single entity and it establishes a transparent information flow between companies. Some real-world examples of this are implemented by major international corporations like BMW, for instance, which uses a v-chain to prevent people from changing the odometer on a car, and this allows you to know the true number of miles that were driven by that car.

Another major company using v-chain is Walmart, which uses v-chain to ensure that your food is actually from the place it claims to be, and this type of product verification usage is exactly what PricewaterhouseCoopers is currently offering to its clients so to govern and use the platform. You need to use vet and VTHO coins. The vet is used for storing and transferring monetary value, making it similar to most other cryptocurrencies in the fact that it can go way up in value and has a limited supply of 86.

billion coins. In addition to this, holding and staking vt gives users the ability to vote on any changes to the platform. If you want to know more on how to make money, staking vet then checks out the how-to stake feed chain. The video linked up here now VTHO, on the other hand, is the so-called gas or energy of the v chain platform. You use VTHO coins to pay for transactions and thus the ability to read or write data to the ledger, and the amount depends on the amount of data and the complexity of the application.

Both vet and VTHO can be bought on the open market. However, the beauty of the system is that holding VET will generate you VTHO and the more vet. You hold the more VTHO you generate before you continue, please like and subscribe to, the channel for more finance and banking information. So this means more and more people are using the VeChain network. The need for VTHO will go up and so will the price of VET.

However, you should be aware that the price of ETH is meant to be kept reasonably stable. Remember that holding and staking large amounts of VET gives you voting power, and this allows you to vote on the amount of VTHO generated since VTHO is used to pay for all the transactions on the platform.

It is in everyone’s interest if VTHO remains relatively cheap, you don’t want to get a bitcoin or Ethereum situation where transaction costs keep increasing to ridiculous amounts, making the network unusable in large-scale real-world applications, and this is exactly what the two-token design of v-chain prevents from occurring.

So putting all of this together, it’s clear that if you want to invest in v-chain and see your investment increase in value considerably, you should buy vet and not VTHO, because, in the short term, VTHO will still increase in value, but eventually, it will be slowed down And at some point might be actively devalued, while vet can actually keep increasing in value depending on how much demand there is for the v chain platform. The current v chain network uses a consensus model to validate all blockchain transactions, and this model is called proof of authority, which is a slight modification to the proof of stake model.

Now there will only ever be 101 of these authority nodes, also known as throttheim, so they are the only ones that have actual hardware invested in a platform being an authority. Node gives you tons of benefits, however, to become one. You must first have at least 25 million vet coins. Afterward, you must be handpicked by the VeChain foundation to become part of the network. The major benefit of operating the v10 platform in this way is that you get much higher processing speeds for all the blockchain transactions.

The downside, however, is that you create a more centralized authority in assigning users who are allowed to process the transaction, so this sort of goes against the essence. If you will of cryptocurrencies and causes some division in the world of crypto now the VeChain foundation has acknowledged this flaw and is currently working on a more randomized way of assigning authority nodes. This was the VeChain explanation please like and subscribe to the channel for more finance and banking information.

Read More: The Vechain DEX of Crypto

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