Imagine you want to buy a bottle of French wine and need to be sure it’s original and was really made in 2012. How to get proof of authenticity? Here’s when VeChain blockchain comes in handy! Addressing the issue of product safety and counterfeit goods, VeChain crypto project is designed to simplify an improve the process of production, logistics, delivery, and quality control. Let’s observe their project and VET coin in details.
What is VeChain cryptocurrency about?
What is VeChain? It’s a global blockchain-based information platform launched in 2015 in Singapore. It digitizes real people, products or events, associating the API with the application layer of the system, connecting the blockchain with real information. The project puts the primary focus on supply chain management and addresses the problem of counterfeit luxury goods. According to CNN, this issue costs companies about $ 461 bln a year.
VeChain foundation uses Smart Contracts focused on real industrial operations. It provides collaboration and value transfer between different use cases. VeChain is creating a completely new business model that provides “trusted services” to all customers and companies.
Initially, VeChain was conceived as a platform for tracking luxury goods, since the founder Sunny Lew has extensive experience working in Fortune Global 500 companies. However, then the team revised this point and decided to expand its “spheres of influence” and focus on the business segment in general, as well as end-users. At the end of autumn 2016, the third version appeared, into the code of which the “templates” for supporting smart contracts were integrated.
How does it work?
A product on the VeChain platform is assigned a unique identifier that is stored simultaneously in the blockchain and is placed on the product with an NFC chip, RFID tag or QR code. At any point of the product’s life cycle, you can interact with a chip, tag or code, whether it is a distributor or a retail partner that determines party membership, or a consumer who learns more about the origin of the product. The company provides a wide range of applications, including brand protection, counterfeit protection, and food safety.
VeChain platform proves to be useful for both companies and individual users. Here’s the list of functions it performs:
|How companies can use VeChain?||How consumers can use VeChain?|
|1. Attach labels to production.|
2. Transport and store products in safe conditions. Whenever the information about the batch is required, the company can scan the label and get real-time data about the product, storage, etc.
3. Implement a system of notifications about the freshness of goods.
VeChain platform might generate a strategy for using products that are about to expire, and so on.
It results in less waste and lower expenses.
|1. Get information about product freshness.|
2. Check whether products were stored in proper conditions.
3. Scan labels.
4. Be sure about the authenticity and freshness of goods.
Today, VeChain is being used in such spheres as luxury goods, foods, medications, governmental organizations, logistics, and farming.
VeChain (VET) Value
What’s the role of VeChain coin in VeChain platform? The cryptocurrency can be used for paying for goods or services. Users can earn VeChain when delivering goods, as well. Thus, the purpose of VET is to fuel the processes taking place on the platform.
41% of emitted tokens were distributed during VeChain ICO (was organized in 2017): the funds are used to cover operational expenses of the project (the team managed to reach 200,000 ETH hard cap). Today, 1 VET is worth $0,004656.
Find out what VeChain platform is created for:
The potential of VeChain project cannot be overestimated: it’s not just about tracking foods. VeChain makes all stages of production and distribution safer and more secure. Both producers and end customers benefit from the transparency of data. VeChain creates a new business model with zero trust – it’s available for customers regardless of the sphere they focus on.
- VET price: $0,004656
- Market cap: $258 218 035
- Circulating supply: 55 454 734 800 VET
- All–time low: $0,003282
- All-time high: $0,019775
The VeChain Thor network actually has two coins: VET and THOR. While VET cryptocurrency is used to complete transactions and to participate in the confirmation of transactions as a validator, THOR is a second-tier coin that is used to pay commission on launching smart contracts or Dapps on the VeChain Thor network (similar to GAS in Ethereum).
Learn more about VeChain VET on BitcoinWiki.org.
VeChain (VET) blockchain review
Until June 2018, the VeChain cryptocurrency existed as a project on the Etehreum blockchain, and its functionality was limited. However, with the move to its own platform, new opportunities opened up. VeChain cryptocurrency has its own specific features that significantly distinguish it from other blockchains.
According to VeChain whitepaper, the mainnet uses the Proof-of-Authority (PoA) consensus mechanism: it’s an adapted Proof-of-Stake algorithm that provides the right to verify transactions to a limited and verified group of nodes.
In the VeChain Thor network, the PoA protocol is not used to confirm the presence of coins on the user’s wallet, as is the case on the blockchain of most coins, but to verify the product. As a rule, a small group of nodes (up to 25 pieces) serves as validators – in most cases, node operators are representatives of a company that uses VeChain Thor for its business.
The VeChain Identity technology offered by developers is unique. It allows you to scan, record and track unique digital identifiers on the VeChain Thor blockchain. When a registered network user (producer) labels a product, it is assigned a unique VID, which is written to the system as a SHA256 hash. This hash can be fixed on a specific product in the form of an RFID code, NFC code or a regular QR code that can be scanned.
You can find VeChain open-source code on GitHub.
Is VeChain available for mining? Yes, VET coin can be mined. Even though VET was created to be ASIC-resistant, there’s a number of ASICs for the Scrypt algorithm entering the market. Thus, you can get VET coins using GPUs and ASIC miners.
What differs VeChain from many other similar projects is that the team strictly follows their roadmap and shows stable development. Their recent achieved goals include:
- Q2 2018. Version 3.0 of VeChain network, massive introduction of the VET token, the internal GAS market, audit of the system, launch of the official VeChain Thor wallet, and more.
- Q4 2018. Version 4.0 introduced into the commercial ecological ecosystem, integration with Internet things (IoT), etc.
2019 future projections are dedicated to the expansion of VeChain Thor ecosystem:
VeChain Latest News
VeChain keeps improving the underlying technologies and expanding the ecosystem. Among the latest news, you can find the announcement about Wine Traceability Platform and NFC tags:
VeChain (VET) Wallets
How to store VET coin? There are three main cryptocurrency wallet options:
- VeChainThor Wallet For Android and iOS
- Ledger Nano S – hardware
Where to trade VeChain (VET)?
VeChain can be bought and sold on a number of exchanges. Currently, the daily trading volume is around $26 593 674. So, which platforms support VET trading?
Aside from that, VeChain is traded on Latoken, Hotbit, BitAsset, BigONE, Lbank, HitBTC, and a few other platforms.
Buy VeChain (VET) at Changelly
If you want to buy VET coin quickly and with minimal fees, try Changelly fast exchange platform. Here, you can buy VET cryptocurrency with a banking card in a matter of a few seconds. It’s easy, safe, and fast.
Despite all the advantages and prospects in the sphere of product identification, the VeChain project should not forget about competitors who also want to occupy the niche using digital tags. In particular, the Waltonchain (WTC) project offers a similar solution, however, it can be used only by B2B customers.
Another competitor in this area is the Modum project (MOD). It offers a solution to the problem of improper transportation and storage of products that require special conditions, such as food and medicines. Modum uses technology similar to VeChain in the form of special digital sensors and identifiers. Thus, the future of VeChain project is defined how hard developers are working on it.
Is VeChain coin a good investment? In fact, the coin lost about 62% of its value since the ICO. No one can guarantee that it can reach the previous heights again. Thus, you should invest in VET only if you are going to use their platform – from a trading point of view, it’s far not the most profitable option.
Disclaimer: This article about VeChain (VET) should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.