VeChain

VeChain is a blockchain platform designed to enhance supply chain management and business processes. It provides enterprises with the tools they need to streamline operations, increase transparency, and verify product authenticity.

The VeChain network operates on a decentralized system where stakeholders can securely track their products in real-time, reducing inefficiencies and combating fraud.

The platform seeks to revolutionize industries like supply chain management by utilizing blockchain technology and a dual-token system.

How does VeChain work?

VeChain's blockchain is based on a proof of authority (PoA) consensus mechanism, which enables faster transactions with relatively low computing power.

The VeChain ecosystem uses a dual-token system: VET and VTHO. VET is the primary token, while VTHO is generated by holding VET.

VeChain also employs smart contracts and distributed ledger technology. To facilitate processes it records data trails, providing an immutable record of transactions for enterprise clients.

VeChain’s structure and operations

The VeChain system consists of VET and VTHO, each serving a unique function.

• VET is the native Cryptocurrency of the VeChain blockchain and represents the transfer medium of value within the network.

• VTHO (VeThor) is used to pay transaction fees, ensuring that the network’s operation is efficient and affordable.

The separation of value transfer from fee payments helps enterprises avoid the impact of fees fluctuations, which is a significant advantage for businesses operating on blockchain technology.

The platform is designed to support large-scale enterprises, making it highly scalable with its focus on efficiency and cost control.

Who is the founder of VeChain?

Sunny Lu, a former IT executive at Louis Vuitton China, founded VeChain in 2015. His expertise in luxury brands and blockchain technology enabled him to identify the potential for improving supply chain transparency and product authentication.

This vision led to the creation of VeChain’s blockchain platform, which focuses on real-world applications in industries like luxury goods and agriculture. Under Lu’s leadership, VeChain has expanded its enterprise clients and partnerships with major players like PwC and DNV GL.

By integrating blockchain tech and IoT, Lu has positioned VeChain to disrupt traditional business models, particularly in the supply chain industry, while enhancing market transparency and efficiency.

What is VeChain (VET) used for?

VeChain aims to enhance the efficiency and transparency of supply chains. It allows businesses to track products from manufacturing to end customers using VeChain's blockchain and Internet of Things (IoT) technology. The blockchain records writing data, ensuring the authenticity and quality of products.

Additionally, the VeChain platform is used for risk management, increasing transparency, and streamlining business processes. Enterprise developers leverage VeChain's platform to build proprietary solutions tailored to specific needs, including international logistics and supply chain management.

Additional use cases of VET

Beyond the management of the supply chain, VeChain’s technology has extended into multiple industries, showcasing its versatility.

For instance, it is being used in the health sector to track medical devices and ensure the safe handling of pharmaceuticals, reducing risks associated with counterfeit goods.

VeChain is also employed in the food industry, where blockchain tech helps monitor food safety by providing transparent records of food handling and transportation.

Furthermore, VeChain aids in carbon footprint tracking, enabling companies to document their carbon emissions transparently, contributing to global sustainability efforts. These wide-ranging use cases highlight VET’s potential across different sectors.

The history of VeChain: Key events and milestones

Vechain foundation and early partnerships

VeChain began operating as a private consortium chain in 2015. One of the key early milestones was the launch of VeChainThor, the platform’s proprietary blockchain, later in 2018.

Early partnerships with PwC and DNV GL helped establish VeChain as a prominent player in enterprise blockchain, focused on increasing market transparency and product authenticity.

The VeChainThor Mainnet and expansion

VeChain launched the VeChainThor Mainnet in 2018, moving away from Ethereum to offer a more tailored blockchain solution. With its Proof of Authority (PoA) consensus, the platform enabled fast, secure transactions with low computing power.

From 2019 to 2021, VeChain software expanded its use cases and secured partnerships with companies like Walmart China, significantly boosting its credibility and contributing to the rising value of VET as its ecosystem grew.

Recent developments and future outlook

Between 2022 and 2024, VeChain diversified its partnerships into new industries, such as healthcare and sustainability. Blockchain solutions for tracking pharmaceuticals and verifying medical devices further demonstrated VeChain’s real-world applications, driving up VET’s price.

The VeChain Foundation continues to improve the platform by reducing network congestion and enhancing security, ensuring it remains a leader in blockchain for enterprises.

Understanding the factors influencing VET's price

Market adoption

The adoption of VeChain by enterprises is a key factor that affects the VeChain price. As more companies from various sectors - such as agriculture, automotive, and healthcare - integrate its blockchain solutions, the demand for VET rises.

This growing utility strengthens VET’s position in the market, contributing to price appreciation. With wider adoption, trading volume increases, boosting market interest and further supporting VET coin price.

Supply chain partnerships

VeChain’s partnerships with major companies like Walmart China and DNV GL significantly impact VET’s value. These partnerships validate VeChain’s real-world applications, particularly in supply chain transparency and efficiency.

As these collaborations expand, investor confidence in VeChain grows, driving up the demand for VET tokens. Such partnerships serve as proof of VeChain’s effectiveness, helping to sustain long-term value growth.

Vechain blockchain development

Upgrades in VeChain’s network security, its PoA consensus, and efforts to reduce network congestion also influence VET’s market performance. By enhancing network efficiency and scalability, VeChain remains attractive to enterprise developers.

These ongoing improvements ensure that the platform remains competitive, helping to support VET’s price as the network continues to evolve and meet business needs.

Why trade VeChain (VET)?

Unique structure

VeChain today is an attractive option for traders due to its strong presence in the supply chain industry and its unique token system. Traders appreciate this network because VET generates VTHO, which is used to pay transaction fees, allowing users to avoid fee fluctuations.

Enterprise partnerships

Additionally, VeChain’s partnerships with enterprises across various industries demonstrate its potential for long-term growth, ensuring that the platform continues to develop solutions that address real-world problems in the supply chain industry.

Efficiency & performance

Beyond supply chains, VeChain is gaining interest from traders because of its low price and high trading volume. VET is also a key player in making international trade more efficient by offering solutions that increase transparency and streamline operations.

Traders who want to earn on a technology that goes beyond just financial applications will find VeChain a valuable addition to their portfolios.