As more blockchain ecosystems come to market, it is pertinent to figure out what makes each of them unique. In the case of VeChain, there is a lot to look forward to. As a blockchain platform, it is perhaps one of most commonly used products on the market today.
The VeChain Vision
Judging by the project’s whitepaper, there are a lot of aspects that deserve to be highlighted. Whereas many people see this ecosystem as an alternative cryptocurrency, it is designed as a blockchain platform first and foremost. Core points of focus include streamlining supply chains, product lifecycle management, and IoT transactions. All of these use cases are valid, and will make an impact on the real world over time.
To build such a trustless and distributed business ecosystem, a different approach to blockchain technology is required. After all, the current implementation of blockchains has certain limitations that need to be addressed. VeChain focuses on transparent information flow, efficient collaboration, and fast transfers. More importantly, its native blockchain can accommodate a very high throughput of data per second.
What makes this project so appealing is how ownership of data is returned to the original owner. This is completely different from the data harvesting techniques large corporations rely on today. While certain details can still be shared with the public, Necessary information can be linked to products and business processes. This allows for greater transparency, something that is in high demand as of late.
Founded initially in 2015, VeChain has seen its fair share of success over the years. Thanks to a growing customer base and appealing technology, the project appears to be on the right track. Ever since introducing its own blockchain in 2018, growth and adoption of this technology has accelerated even further
Dual VeChain Tokens for Different Purposes
As is common in the blockchain world, every ecosystem has its own native token. Things are slightly different where VeChain is concerned. It has two different tokens: VET and VTHO. VeT is the native CeChain token used to carry value from one smart contract to the next. It is also the “crypto asset” of this ecosystem, and one that seems to be subject to ample price speculation these days.
VTHO, on the other hand, is the VeChainThor Energy, or VeThor Energy. It powers all transactions on Vechain’s blockchain and can be compared to how gas works on Etheruem’s blockchain. All decentralized applications built on this blockchain make use of VTHO as a way to cover network fees.
Achieving Governance and Consensus
There is a secondary purpose to owning VET as a token. It can be used to vote on the future governance of the ecosystem. Votes on proposals and suggestions are divided between VET holders with KYC and those without KYC. All parties have a say in these matters, assuming they own at least 1 million VET in their wallet.
Combined with the masternodes validating transactions and data streams, consensus can be reached on VeChain’s blockchain. All nodes are public by default, as disclosing their real-world identity is mandatory. This is another key difference compared to most other blockchain projects on the market today.
Partnerships Pave the way
Having a powerful blockchain capable of addressing key industry issues is one thing. Ensuring someone uses it in the real world, is a different matter. For VeChain, there are a lot of partnerships in place already, with more being added around the clock. Dozens of companies are already exploring the potential of this technology, including the likes of PwC, Walmart, and others.
Disrupting the supply chain industry is only the first step along the way. Through dApps and its own native Internet of Things platform, things are bound to get rather interesting for VeChain’s ecosystem in the next few years.