What Is Vechain (VET) How It Works & Where To Buy It?

VeChain (VET) is an innovative blockchain that positions itself as a supply-chain optimizer. The VeChain network is powered by its two token system – VET and VTHO.

VeChain aims to enhance supply chain management through its efficient, secure, and ultra-affordable blockchain technology.

VeChain has gained a significant amount of attention in the crypto space and VET is currently the 38th largest cryptocurrency by market capitalization.

 

How VeChain (VET) Works

VeChain uses distributed ledger technology to streamline intensive business processes, essentially simplifying complex supply chains through its unique blockchain technology.

The VeChain whitepaper, available here, clearly illustrates the functionality of the blockchain and how it is perfectly adept at servicing the needs of enterprises. VeChain uses a proof of authority (POA) mechanism which is a novel consensus mechanism in the crypto space.

VET tokens are used for the transference of value across the blockchain and the VeThor token (VTHO) is used to power smart contract transactions – essentially acting as the gas for transaction costs.

VeChain primes itself as an intermediary of the Internet of things (IoT) – allowing the tracking and possession of merchandise to be streamlined. The system involves every item having a unique ID, making assets trackable and further securing the supply chain.

 

What Is VeChain (VET) Used For?

Supply chains are extremely data-intensive and VeChain addresses these issues and aims to provide solutions for real-world economic problems that companies face.

The first solution that VeChain provides, is the simplified collection and storage of businesses’ data – allowing the data to be more manageable and secure by using blockchain technology.

These processes are optimized through a secure and efficient network that provides businesses with enhanced control and management.

The second solution VeChain provides is transparent information flow and tracking of all merchandise items. There exists a major counterfeiting issue in the world, with the counterfeit industry expected to exceed $3 trillion in 2022.

VeChain provides every item throughout the supply chain with a unique ID – ensuring its credibility and accurate management throughout the process. This positions VeChain incredibly well for enterprise adoption.

Additionally, the VeChain ecosystem has decentralized applications that cater to the needs of businesses and users. Individuals can easily trade cryptocurrencies built on the VeChain blockchain and explore an array of other useful applications.

Individuals can also store VeChain tokens or VeThor tokens in their VeChainThor wallet. Users can earn VTHO tokens by simply storing VET tokens in their VeChainThor wallet.

 

Where To Buy VeChain (VET)

VeChain (VET) is among the most well-known cryptocurrencies on the market. The VeChain project has achieved some incredible feats in recent years, and its community is extremely confident in the project’s future success.

VET tokens are commonly available and frequently traded on most centralized crypto exchanges. Before you’re able to purchase VET, you’ll need to deposit fiat money onto an exchange, and sequentially VET tokens will be credited to your VET digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store VET tokens.

1. Gate.io
2. HTX
3. KuCoin
4. HTX
5. Crypto.com

VET token holders can transfer their VET tokens or VeThor tokens to VeChainThor Wallet – users can earn generous yields on their tokens by using the native wallet.

 

About VeChain (VET)

How long has VeChain (VET) existed?

Sunny Lu, who is a former CIO of Louis Vuitton China, founded VeChain in 2015. The original ticker for the VeChain token was VEX, which was later changed to VET in August 2018.

It achieved its highest market cap in April 2020 – where it was ranked as one of the top 20 largest cryptocurrencies in the world by market capitalization.

What’s controversial about VeChain (VET)?

Some would say that the crypto market is over-saturated, and many projects fail to reach success because of the rapid rate of new projects entering the crypto space. Therefore, it’s essential to do diligent research into crypto projects, and gain as many insights into the project, its history, tokenomics, team, and partnerships.

Let’s take a look at the top two controversies surrounding VeChain (VET):

• Total supply is very high – Many individuals choose to invest in cryptocurrencies as a store of value. Bitcoin is seen as a store of value because of its relatively low supply and credible track record. However, VeChain, even though its seen as a credible project has a total supply of more than 86 billion.

  This is a major concern for many potential investors who fear that the supply is simply too large. In comparison, Bitcoin has a total supply of 21,000,000.

• China has banned cryptocurrencies – China FUD (fear, uncertainty, and doubt) has been known to negatively affect the crypto market. VeChain is a Chinese-based project that is in partnership with the Chinese government.

  Although it partnered with the Chinese government, many individuals are concerned about the success of the project due to China’s ever-changing stance on cryptocurrencies and blockchain.

How many VeChain (VET) tokens are there?

At the time of writing, VET has a circulating supply of 64.32B VET (74% of the total supply).

The total supply of VeChain (VET) is 86,712,634,466.

Can VET be mined?

VeChain (VET) is not a mineable cryptocurrency. VET, unlike Bitcoin, can’t be mined. VeChain uses a proof of authority consensus algorithm, unlike most mineable coins that use a proof of work algorithm.

However, many individuals earn yields through depositing their VET tokens into the VeChainThor wallet, where they accrue VTHO daily for simply storing VET tokens in the wallet.

Some centralized exchanges like Binance also offer staking rewards for VET holders that lock up their tokens for a certain duration.

What is the market cap of VeChain (VET)?

The market cap of VeChain (VET) is:

VeChain (VET) market cap = total amount of coins in circulation x current market price of VET.

VeChain (VET) Market Cap = 64.32B VET x $0,0566 = $3,64 billion (38th largest market cap)

VeChain recently announced how its novel technology can be used for vaccine passports, and the endeavor has seen success in San Marino.

It is currently one of the top 50 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more investment, bolsters utility, and increases user adoption.

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of VeChain (VET)

VeChain like Ripple and Stellar uses distributed ledger technology to achieve optimized enterprise operations.

However, the smart contract execution offered by VeChain makes it especially appealing under current market conditions. The VeChainThor blockchain platform has brought about the creation of innovative decentralized finance applications and other notable decentralized applications that have been deployed on the VeChain Blockchain.

Even though the project has made significant advancements in the crypto space, it still has a host of competitors who aim to provide similar solutions.

Some of VeChain’s biggest competitors are:

• Chainlink
• Tron
• Ethereum

 

What are the future plans for VeChain and VET token

VeChain has announced that it intends to continue solving more complex real-world problems with its blockchain technology.

Among the most prominent future plans for VeChain includes the reduction of VTHO gas fees and the expansion of its ecosystem.

There are a significant amount of blockchain applications being deployed on VeChain, ranging from blockchain games such as Mad Viking Games to decentralized exchanges like Vexchange.

The expansion of the VeChain ecosystem is necessary if the project expects to see continued growth and user adoption.

 

Pros And Cons Of VeChain And VET

Pros:

• Huge partnerships – VeChain has partnered with some of the most influential organizations and brands in the world including Louis Vuitton China, the Chinese government, and PWC.
• Cheaper than ETH and BTC – Processing transactions on VeChain’s blockchain is significantly cheaper than the Ethereum or Bitcoin networks. Sending VET from exchanges is slightly more expensive but sending directly from the VeChainThor wallet costs less than $0.01.
• Caters to real-world needs – VeChain provides solutions to real-world enterprise and supply chain problems. Many projects position themselves as solution providers but in fact, the solutions they provide are for problems that don’t affect many. VeChain truly offers necessary solutions to real-world problems.
• Credible project that has been around for years – VeChain is comprised of a very successful and talented team including employees that have had influential roles at major global companies. The project has been around since 2015, which makes it one of the more credible projects in the crypto space.

Cons:

• Chinese Government links – Many individuals see VeChain’s partnership with the Chinese government as a double-edged sword. The partnership highlights the credibility of the project and the potential of its blockchain technology.

  However, the Chinese government has been known to alter its stance on cryptocurrencies and blockchain quite often. Theoretically, if China decided to end its partnership with VeChain, it would likely have a dramatically negative effect on the future of VeChain – mainly because it is a Chinese-based blockchain project.