What Is Vechain?
VeChain is a decentralized, open-source blockchain platform that was founded in 2015 with a focus on supply chain management and the Internet of Things (IoT). It is designed to enable businesses to improve the efficiency, transparency, and security of their supply chain operations through the use of smart contracts and distributed ledger technology.
One of the key features of VeChain is its ability to track and verify the authenticity and provenance of goods throughout the supply chain. This is achieved through the use of VeChain’s proprietary technology, which includes smart chips and sensors that can be attached to physical products and connected to the VeChain blockchain. These chips and sensors enable the real-time tracking and monitoring of the movement and status of goods, as well as the automatic execution of smart contracts based on predetermined conditions.
How Does Vechain Work?
The VeChain platform uses smart contracts to automate supply chain processes and enable the creation of decentralized applications (DApps). Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They allow for the automation of a wide range of processes, including the tracking of goods and the handling of financial transactions.
What Partnerships Does Vechain Have?
Vechain has some of the most impressive partnerships in the entire industry. Here are some notable examples, along with some info on how their partners are using the blockchain..
- PwC: PwC, one of the world’s largest professional services firms, has partnered with Vechain to develop and implement blockchain-based solutions for supply chain management and other applications.
- DNV GL: DNV GL, a global quality assurance and risk management company, has partnered with Vechain to develop a blockchain-based platform for supply chain traceability and sustainability.
- BMW: BMW has partnered with Vechain to develop a blockchain-based platform for supply chain traceability and to explore the use of blockchain technology in the automotive industry.
- Haier: Haier, a global appliance manufacturer, has partnered with Vechain to develop a blockchain-based platform for supply chain traceability and to explore the use of blockchain technology in the appliance industry.
- China Unicom: China Unicom, one of China’s largest telecommunications companies, has partnered with Vechain to develop a blockchain-based platform for supply chain traceability and to explore the use of blockchain technology in the telecommunications industry.
Vechain’s partners are using the platform to develop and implement blockchain-based solutions for supply chain management, traceability, and sustainability, as well as to explore the use of blockchain technology in various industries.
They also have a partnership with the Ultimate Fighting Championship (UFC), although that arrangement appears to be a paid promotional relationship rather than UFC actually using the platform for anything.
VET and VTHO Token Use Case
The Vechain ecosystem has a dual token system. The first being VET, and second being VTHO. They serve different functions.
What is the VET token used for?: The main purpose of the VET token is to facilitate transactions. VET can be used to pay for goods and services, transfer value between users and to enable smart contracts.
In addition to its transactional functions, the VET token also serves as a means of governance. VET holders can participate in the decision-making process by voting on proposals and participating in governance meetings. This gives VET holders a say in the direction and development of the Vechain platform.
The VET token is also used to reward users who contribute to the security and stability of the Vechain network, through a process called “Proof of Authority” (PoA). PoA is essentially staking. In this process, users who hold a certain number of VET tokens can act as “authorities” on the Vechain network and earn rewards for their contributions.
There are different categories of “nodes” based on the amount of VET tokens held. The amount of rewards you get is based on which node class you fall into. The more VET tokens you hold and commit, the higher rewards you’ll receive. The rewards are paid out in a secondary token called VTHO – and yes, you’ll receive VTHO even if you only hold a small amount of VET in your wallet. You’ll just receive them at a slower rate than holders who have committed larger amounts.
What is VTHO used for?: VTHO, which somehow stands for “Vechain Thor Energy” is a utility token that is used to pay for the cost of using the Vechain platform. VTHO is generated through the “Proof of Authority” process (discussed above), in which VET holders earn rewards for their contributions to the security and stability of the Vechain network. VTHO can be used to pay for the gas required to execute smart contracts and other transactions on the Vechain platform.
Overall Thoughts
My view on Vechain is both positive and negative. I feel as though it will stand the test of time due to their strong partnerships and use cases, however, if you care about the liberation of the world, then Vechain doesn’t seem to be a platform that values such an ideology. This is to be expected I suppose given their ties to communist China.
One of their projects is called VeCarbon, which is created to track “carbon footprints” and “carbon credits”. This is the direction the banker-controlled UN and WEF wants to go. It’s essentially mass tracking and enslavement of the world under the guise that we need to save the planet from “man-made climate change”. Absolute nonsense if you ask me.
Anyway, Vechain has seen new highs in both the last bull markets. Will it happen again? I’ve personally placed a small bet that it does (not investment advice).
