Blockchain technology’s fundamental characteristics, such as decentralization and immutability, transparency, automation, and automation have been proven to be able to serve many purposes for different businesses. It can be costly and difficult for businesses to fully reap the benefits of blockchain technology due to the high costs involved in creating and maintaining them.
Many projects have made efforts to lower entry barriers since the widespread adoption of distributed ledgers. VeChain, a blockchain platform that aims to increase widespread adoption of blockchain technology, is one example. Blockchain aims to solve the greatest problem facing supply chain organizations: lack of transparency. It allows businesses to transact directly without any intermediary. It allows data sharing among stakeholders and facilitates greater integration of logistical and financial services.
This article will cover VeChain’s public blockchain, its unique features and how VeChain (VET), works, VeChain buying, and VeChain staking.
What is VeChain, (VET)?
VeChainThor is a public blockchain that allows companies of any size to make use of blockchain technology. This blockchain acts as a building block for an extensible and resilient enterprise blockchain ecosystem.
VeChain claims that Ethereum is not suitable for large-scale, commercially decentralized applications (DApps). However, it remains a major technological milestone. This is due to the fact that Ethereum lacks a strong governance framework that allows for transparent and quick protocol changes to address new issues or breakthroughs.
The Ethereum blockchain lacks an appropriate economic model, which restricts businesses from operating DApps at a predictable and controllable cost. Companies may also not be able to predict future Ether prices and the costs of maintaining an Ethereum decentralized application. What makes VeChain so unique?
VeChainThor hopes to address the above problems using meta-transactions features, a Proof-of-Authority (PoA), an On-Chain Governance Mechanism, and a unique Two-Token System.
Meta-transactions features
For enterprise adoption, VeChain’s meta-transaction features, as discussed below, help make the development user-friendly:
- Multi-party payment: A decentralized application’s freemium model is enabled by flexible transaction fee delegation schemes to onboard users smoothly. With VeChain’s innovative fee delegation protocol, an enterprise can have a smart contract and designated gas account to manage the gas fees necessary to use the network.
- Transaction lifecycle control: Users can specify when a transaction will be executed or terminated if it isn’t included in a block by using the BlockRef transaction fields.
- Multi-task transaction: Developers have the ability to batch pay, include multiple calls to different contract functions in one transaction, and control the order using multi-functionatomic transactions.
- Transaction dependency: Users can create dependencies to prevent transactions being executed from the time the relevant transaction has been processed. This will ensure that the execution order meets the business’s requirements.
POA consensus mechanism
PoA addresses the many issues that businesses have with inefficient upgrades and energy waste. VeChain’s proof-of-authority is efficient because:
- Hard forks can be avoided if Authority Masternodes don’t update, thanks to the built-in smart contract.
- For network security and consensus integrity to be achieved, it is necessary that the computation power required for this task is low.
- All Authority Masternodes Operators are rigorously verified by the Foundation.
Governance
The VeChain Steering Committee, elected by the community, takes decisions and ensures that these are implemented with the support of the onchain governance mechanism. It covers stages like proposing, approval, and execution. A role-based voting system also helps to reduce organizational and technical uncertainty.
Dual token economy
VeChain Token, (VET), and VeChainThor Energy, (VTHO) are the two tokens that make up the VeChain Token ecosystem. VET is the first token. This token can be used to create VTHO (the second token) and to make payments to VeChain users. With the VTHO token, transaction fees are settled, and the platform’s gas and smart contract development costs are covered.
What is VeChain (VET), and how does it work?
PoA consensus algorithms are used to secure transactions on the blockchain network. The platform employs 101 Authority Masternode operator network that uses a PoA consensus algorithm. They perform smart contract operations and uphold the VeChainThor governance rules.
Under the direction of the steering committee, users must complete rigorous Know Your Customer (KYC) checks and be able to contribute to the network’s growth, whether as a business, developer or other entity. A unique two-token system, as discussed above, protects firms from excessive market volatility and market speculation. It also allows them to be more confident about their operating costs.
VeChain ToolChain (VeChainThor) is the main product that the VeChainThor platform offers. It allows businesses of all sizes to collaborate in the development of new products and services. VeChain ToolChain provides platform-as-a-service (PaaS), software-as-a-service (SaaS), and blockchain-as-a-service (BaaS) to create new strategies for generating value for various stakeholders, promote transparency and offer insights into product life cycles.
For instance, VeChain’s low-code deployment PaaS allows customers to design process templates and use the in-built tools to avoid creating their own blockchain applications from scratch. In addition, its Food Safety Track & Trace SaaS offers the food and beverage industry a range of easily deployable traceability features, such as quality certificates, to communicate and reliably increase brand recognition.
VeChain provides a restful API that allows you to use standard smart contract services through BaaS. Two computers use the restful API (an application programming interface) to safely exchange information over the Internet.
VeChain tokenomics claims that 70% of transaction fees are burned to reduce the circulating supply, while masternode operators get 30%. VeChainThor is a sustainable reward system for node owners.
History of VeChain: Who are the VeChain people?
Sunny Lu, a former chief information officer at Louis Vuitton China (Chinese-Canadian founder Binance), founded VeChain as a subsidiary to Bitse in 2015. Bitse is a company that offers blockchain-powered solutions. While the VEN token was once available on the Ethereum platform at one time, VeChain switched over to its own blockchain in 2018 and became the VeChainThor blockchain (VET).
VeChain hopes that data transparency will allow them to disrupt the supply chain. To enhance their business operations, the business has partnered with many companies including Microsoft, PWC and BMW.
Related: How blockchain technology is used to manage supply chains
How to purchase VeChain
Depending on your country, you can choose a cryptocurrency exchange that supports VeChain or VET cryptocurrency and purchase a wallet to store your tokens. You can also keep your tokens in an exchange wallet.
VeChain also created the Thor wallet for its own cryptocurrency. It is compatible with iOS and Android. VeChain tokens can’t be used in MetaMask wallets because they don’t use the Ethereum blockchain. You can purchase VET tokens in the amount that you wish and then transfer them into the wallet of choice for safekeeping.
These are the steps to purchase VeChain (VET), on Binance.
You can also make passive income with VeChain by buying VET. In order to make passive income with VeChain, you will need to first buy Bitcoin (BTC), then trade your BTC for VET. Once you have located a wallet or exchange that supports VeChain stakestaking, There aren’t any staking pools where one can combine VET investments to earn more VTHO, unlike other cryptocurrencies.
Related: How to make passive crypto income using Bitcoin
Are there NFTs available at VeChain?
Along with VeChain’s use cases in the supply chain, its nonfungible token (NFT) ecosystem is also thriving. VeSea is a decentralized NFT marketplace that allows you to trade and create VIP-181 tokens. These tokens are kept on VeChain’s blockchain. The VeChain Foundation has introduced the VIP-181 Standard. This standard allows tokens to be used in smart contracts and provides fundamental functionality.
To sell, buy, or store NFTs on VeSea users will need a VeChain compatible wallet. This wallet is compatible with VeChain Sync2 (VeChainThor Wallet) and VeChainThor Wallet. VeSea does not require gas because of its effectiveness. Users will need to pay a 2.5% transaction fee.
VeChain has two NFT collections, VeKings and Paper Project. VeKings NFT series contains 8,147 pieces of art. They include the Valkyries and Vikings, which are symbols of the legendary VeChain Empire. Emmet Ahlstrom, a Southern California-based artist, has created the interactive NFT Paper Project. It contains 11,880 unique NFTs.
VeSea offers a discount up to 100% for assets from these two NFT collection collections. World of V, another VeChain NFT market place compatible with the Sync2 wallet is also available. It is completely free to use. Additionally, the platform offers complete minting support. This allows new NFT projects to be accepted through the launchpad. Nonfungible token owners can also stake their NFTs into the creator ecosystem.
Is VeChain a wise investment?
VeChain aims at accelerating the mass adoption blockchain technology. It addresses issues such as high costs associated with maintaining an Ethereum-based DApp. Despite VeChain’s use cases in supply chain management and other industries, investment choice depends upon one’s financial objectives and risk-return profile.
It is important to remember that investing in a cryptocurrency you do not feel confident in can be dangerous and could result in you losing your hard-earned capital. Your expectations of returns should guide your asset allocation decisions.
Is the VeChain network safe? VeChain partners with several security companies including Secureware, SlowMist and Hosho to identify potential vulnerabilities and prevent cyber threats.
VeChain’s future
VeChain, a layer-1 smart-contract platform, allows developers to create custom smart contracts and DApps. Its applications are used in logistics, supply chain management, and other industries to help businesses improve their operations. But, when deciding on portfolio allocations, it is important to weigh the pros and the cons.
VeChain is no different. The future is uncertain. However, VeChain’s future is uncertain. However, whatever the outcome, it will still be exciting to see VeChain competing with its rivals and offering unique solutions to get a competitive edge.