A Complete Beginners Guide to VeChain (VET)
A brief introduction to the IoT blockchain that uses Proof of Authority as its consensus mechanism.
By Wendy's Whitepaper Contributor: Dragonwolftech
In this article, we will look at VeChain (VET). VeChain was launched in 2015 by Sunny Lu to create an Internet of Things (IoT) application for managing supply chains.
How does VeChain work?
VeChain works by providing real-world products with a digital identity unique to that product. This digital identity can take the form of QR Codes or other scannable sensors. In addition, businesses wanting to take advantage of VeChain’s Blockchain-as-a-Service (Baas) protocol do so with VeChain’s ToolChain.
VeChain says that any business, no matter the size, can use blockchain technology through ToolChain. According to VeChain, ToolChain offers product lifecycle management, supply chain process control, data deposit and certification, and process certification.
What is VeChainThor?
VeChainThor, launched June 30th, 2018, is a public blockchain that VeChain has designed to be used by businesses of all sizes to drive the adoption of blockchain technology. VeChain designed VeChainThor to be a blockchain ecosystem that is both sustainable and scalable.
VeChain has two tokens: VeChain (VET) and VeThor (VTHO). VeChain designed the dual-token system to avoid the fluctuation of fees and congestion on the network. The VET token is for transactions, and VTHO is for fee payments and functions similar to Ethereum “gas.” Currently, the largest trading volume of VTHO/USD is on Binance.com, with a volume of just over 1 million USD.
Proof of Authority
Blockchains use various consensus mechanisms, such as Proof of Work (POW) and Proof of Stake (POS). VeChain uses a Proof of Authority (POA) consensus mechanism. According to the VeChain whitepaper, Proof of Authority is “a consensus algorithm that demands nodes to be authorized in order to participate in the blockchain consensus.”
Proof of Authority, unlike Proof of Work that requires processing power and Proof of Stake that requires holding a certain amount of coins, Proof of Authority is about the identity and reputation of trustworthy nodes that make up the network. Both public can use proof of Authority, and private blockchains can use Proof of Authority consensus.
The current market for VeChain (VET)
The current market cap for VeChain (VET) is $5,331,235,214.25 according to data from CoinMarketCap.com. At the time this article was, the current trading price of VET is $0.08 (see CoinMarketCap.com for current market information).
VeChain (VET) is trading on numerous exchanges, including Binance, Binance.us, KuCoin, Huobi Global, Bittrex, Bitfinex, Crypto.com, and more. Wallets that support VeChain (VET) include Ledger, Trezor, Math Wallet, Trust Wallet, Exodus, and Safepal.
Wendy's Whitepaper Disclaimer: Please be advised that I own a diverse portfolio of cryptocurrency assets, and anything written or discussed in connection to cryptocurrencies– regardless of the subject matter's content– may represent a potential conflict of interest. I wish to remain transparent and impartial to the cryptocurrency community at all times, and therefore, the content of my media is intended FOR GENERAL INFORMATION PURPOSES ONLY. Nothing that I write or discuss should be construed, or relied upon, as an investment, financial, legal, regulatory, accounting, tax, or similar advice. Nothing should be interpreted as a solicitation to invest in any cryptocurrency, and nothing herein should be construed as a recommendation to engage in any investment strategy or transaction. Please be advised that is in your own best interests to consult with investment, legal, tax, or similar professionals regarding any specific situations and any prospective transaction decisions.