14.7 C
Tuesday, October 4, 2022

What is VeChain? (VET Crypto)

Hey everybody, I’m Kris with Exodus and we’re going to power up the grid to take a deep dive into VeChain 2020. So, what is Vechain? The VeChain ecosystem is built on top of the VeChain Thor blockchain. – a unique dual-token system made up of the VeChain Token, or VET, and the VeThor power token, VTHO. It’s a proof of stake economy that rewards VeChain holders with VeThor tokens. This means if you hold VeChain tokens, you’re entitled to VeThor tokens based on the amount of VET tokens you hold. We’ll dive more into the details of staking VeChain a bit later.

We’re going to look into what makes the VeChain Thor network unique, it’s utility and its tokens, but first, a bit of history and VeChain news VeChain was created in 2015 and is one of the older projects in blockchain, originally running as an ERC20 token on the Ethereum network named VEN. VEN’s all-time high of $9.45 happened on Jan 22nd of 2018. While an ERC20 token with active smart contract projects in the agriculture, winery, and luxury good spaces, VeChain saw the limitations of running on a network where they had less control in designing governance and development than if VEN was run on its own native network. In late 2017, the hottest VeChain news was that the VeChain team jumped into the ICO ocean and raised approximately $20 million in ETH to fund the VeThor mainnet launch. The upgrade from VeChain to VeChain Thor occurred in June 2018 with the token migration from the Ethereum network to the VeChain Thor mainnet.

What do you think will happen to VET’s price this year? Let us know your vet price prediction 2020 in the comments. Keep in mind though, that price isn’t everything, so let’s take deeper look at what makes VET tick, could it bet the VeThor token? So what is VeChain Thor? In its humble beginnings, the idea was to link products to consumers using blockchain technology, this is a fancy way of saying supply chain management, but in the last couple of years this has evolved into an Internet of Things token layer, tracking assets on the blockchain, coupled with a smart contract layer to track who owns these assets and the code to create decentralized applications, or Dapps, to use the data. The VeChain (VET) token is the store of value and the currency in the VeChain ecosystem. The VTHO (VeThor) token acts as the energy or, power, to make transactions on the VeChain network.

Some examples are to pay for executing smart contracts or simply transferring VET tokens. If you’re familiar with or NEO, this is not much different than NEO GAS. By holding VET, you automatically get paid VTHO. This is called Proof of Stake and the more VET you hold the more VTHO you earn. Your VET will generate VTHO at a rate of 0.000432 VTHO per day per VET. If you want to learn more about how simple it is to begin earning passive income with VeChain on your mobile phone, laptop, or desktop computer– click the link above or wait until the end of this video. Why does Vechain Thor use this two token system? Simply to help keep the value of the VET token and transaction fees stable. The VeChain Foundation (which is part of the governance model) can raise or lower transaction costs based on network demand and because the token used to pay for the transaction is separated from the actual Store of Value, doing so has little effect on the Value of the main token.

Consensus on the VeChain Thor network is accomplished through Masternodes. These are holders who apply for the right to maintain the network and are made up of various players including Academic partners, Developers, Enterprise users, Business partners, and community contributors. There are a couple of different types of master node operators, Authority nodes, and economic nodes, but sticking to the basics, these nodes are aligned with the ecosystem development and help maintain the security of the VeChain Thor network. Another aspect of VeChain Governance is the proposal system. This is similar to other masternode systems such as DASH where community members create proposals for the network, this helps with continual and rapid innovation. A community elected starring committee is responsible for the approval and execution of proposals via smart contracts. Vechain is designed to scale up to 10 thousand transactions per second, This can be done because of the distributed nature of the 101 authority nodes on the network helping validate transactions. What is the result of all this? We’ll as a general consumer, I doubt you would need the capacity or scalability of the VeChain Thor network in your day to day.

But think about all the things you do use every day. Things like your food, your dishwasher, your toothpaste, even the computer or phone you’re watching this video on right now. Each goes through many steps from creation to landing in your lap. The businesses who are responsible for making sure you get the freshest produce, the best clothes, heck even the electricity gas and water you use could greatly benefit from this type of smart contract-based supply train tracking. Companies like Microsoft, Babyghost, PwC, Xiamen inner information tech, Renault, Hyperledger, Healthcare co, and many more are already using VeChain in their operations.

As more businesses adopt VeChain to improve their supply chain tracking, the demand for VET will increase. What could this mean for the value of VeChain tokens? Are you a VET holder? If not, an easy way to get some VeChain and start earning VeThor tokens is in Exodus. Deposit another crypto like Bitcoin or Ethereum into the Exodus app on desktop or mobile, and instantly exchange for VET with one-tap straight from your wallet. What do you think the futureVeChain looks like?, is it a Gem in the blockchain or is there another token that does something similar that will make VeChain Thor obsolete? Leave a comment below with your thoughts and if you liked this video, give it a thumbs up.

Remember to subscribe to the Exodus channel for more crypto videos. Until next time, HODL on..

Read More: Bridges 2 Ethereum

Related Articles

Stay Connected

- Advertisement -

Latest Articles