History of VeChain

VeChain was founded in 2015 by Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China. When it first started, its parent company was Bitse. It is one of the largest blockchain companies in China. Among well-known companies, it is one of the few blockchains with a substantial customer base.

The VEN coin first functioned on the Ethereum blockchain. VeChain adopted its blockchain and relaunched itself in 2018. After a rebranding, the VEN blockchain is now known as VeChainThor (VET). The goals of the VeChain blockchain platform are outlined in its white paper. Its initial objective was to enable transparent and useful information, revolutionizing the supply chain industry. As an intermediary for the Internet of Things (IoT), it also aims to set the standard for decentralized apps (dApps) and VeChain-powered initial coin offers (ICOs).

Over the years, VeChain has established strategic collaborations with some companies to help achieve this goal. One of these is a collaboration with PricewaterhouseCoopers (PwC) that will allow PwC’s clients to benefit from VeChain’s blockchain-based products to improve product traceability and verification.

Gui’an, an industrial development zone under the Central Chinese government, has VeChain as its technology partner. Additionally, it collaborated with Microsoft and Viseo to develop an unhackable digital car maintenance book with Renault.

What is VeChain?

This is a blockchain platform launched in 2015 by Jay Zhang and Sunny Lu, Louis Vuitton China’s former CIO. Its objective is to use distributed ledger technology (DIT) to enhance supply chain management. They first used an Ethereum network token crowd sale to raise $20 million for the cryptocurrency VEN. Afterward, VET replaced VEN at a 1:1000 ratio when VeChain debuted the VeChainThor blockchain.

VeChain’s primary objective is to solve supply chain issues and streamline information management for businesses by using smart chips to monitor every point related to a supply chain movement. These smart chips connect to a distributed ledger to offer the best security, reliability, and transparency levels. For example, VeChain and Renault worked together to create an impenetrable digital auto repair manual that safeguards potentially sensitive repair data.     

VeChain’s secondary goals are to set the standard for decentralized applications (DApps), initial coin offerings (ICOs), and Internet of Things (IoT) intermediaries.VTHO and VET are the two currencies used. “Smart money” is provided via the VeChain currency, or VET, which settles smart contracts via the VeChain network. Everyone has an opportunity to invest in VET. The VeChainThor Energy token, or VTHO, is used to conduct transactions on the VeChain network.

How does this work? 

 VeChain is among the most well-known uses of the Proof of Authority (PoA) consensus mechanism. In Proof of Authority (PoA), identity is used as a stake to validate transactions and the creation of new blocks. Since their reputation helped them get their job, validators have the motivation to maintain the transaction process to maintain their good standing. VET holders must divulge their identification when applying to be validators; being anonymous is not an option. Unlike consensus algorithms like Proof of Work (PoW), PoA does not require a minimum number of validators to reach consensus, which leads to comparatively fast transaction speeds.

How to buy?

VeChain can purchased on cryptocurrency exchanges like Bitpanda using fiat currencies, such as euros or US dollars. It’s a good idea to educate yourself before on the history of VET pricing as well as the current exchange rate. Once purchased, your VeChain investment is visible and accessible via a digital wallet that resembles a banking app. You then have the option of keeping or selling your VET back to the exchange.

Is VeChain (VET) a good investment?

VeChain seeks to speed up the widespread adoption of blockchain technology by addressing issues such as the excessive expense of running an Ethereum-based DApp. Even with VeChain’s applications in supply chain management and other industries, investment decisions are based on risk tolerance and financial objectives.

That being said, investing in cryptocurrencies can be risky if you don’t feel confident enough and fear losing your hard-earned money. Therefore, when making decisions on how to divide up your assets, consider the anticipated returns on your investment.

The future of VeChain

VeChain is a layer-1 smart contract platform where developers can create unique DApps and smart contracts. Its application in supply chain management, logistics, and other sectors can help businesses run more efficiently. However, before contributing money to a portfolio, one should constantly weigh the benefits and drawbacks of investing.

this is as unpredictable as the future; it is hard to forecast if this will take the place of Ethereum. Either way, it will be interesting to see how VeChain takes on its rivals and offers distinctive solutions to obtain an edge.