What is VeChain?
VeChain is a blockchain platform designed to enhance supply chain management and business processes. The goal is to streamline these processes for complex supply chains through the use of distributed ledger technology, in this case blockchain. The VeChain platform has two tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). The first is used to transfer value across VeChain’s network, and the last is used as gas to process transactions.
The white paper reads as follows, VeChain is “to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers”.
Data from businesses processes in a supply chain is often compartmentalized in silos. The challenge is to create a 360-degree view of the data for all the stakeholders to optimize the flow of information.
How can I use VeChain?
VeChain can be used just like any other currency. You can pay for goods and services (online) and use VeChain (VET) for trading. Or invest (hodl) and hold for an extended period, in this case, make sure you save your VeChain (VET) safe, preferably on an offline wallet.
Who founded VeChain?
Sunny Lu, former CIO of Louis Vuitton in China, founded VeChain in 2015. A CIO is acting as a bridge between the technology and the business. In short, match (new) technology with business needs.
Being part of Louis Vuitton China made Sunny understand what large enterprises need in terms of verification, authenticity & traceability. All characters of the blockchain technology.
VeChain vs. other cryptocurrencies
Ethereum has shown a state-of-the-art public blockchain since 2014. Some of Ethereum’s most important innovations included the introduction of an account model that can save data other than balance information. The concept of a smart contract that enables blockchain to describe more complicated objects and activities in the real world.
Despite being a major technological milestone, Ethereum has proven to be unsuitable for hosting large-scale commercial decentralized applications (dApps). One of the main reasons for this is that there hasn’t been an effective governance structure set up from Ethereum’s very beginning that would allow efficient and transparent transitions (upgrades) of the protocol to adapt to new challenges or innovations. Secondly, Ethereum lacks a suitable economic model to allow enterprises to run their dApps with a controllable and predictable cost. Considering the level of volatility of the ether price, it is almost impossible for companies to predict the future price of Ether or the cost of running a dApp based on Ethereum for a given period of time.
The VeChainThor Blockchain is designed to tackle the above problems. It is not built from scratch; it expands upon some of the essential building blocks of Ethereum (e.g., the account model, the EVM, the modified Patricia tree, and the RLP encoding method) and provides innovative technical solutions that are powered by our novel governance and economic models, which, we believe, will push forward broader blockchain adoption and the creation of new business ecosystems with more efficiency and trust. VeChainThor is packed with technical features that are tailormade for the actual needs of enterprises, individuals, and developers.
Can I earn money with VeChain?
Yes, you can earn money by trading & staking VeChain (VET). Buy low, sell high. VeChain can be used to trade against other cryptocurrencies. In past years, VeChain's value has increased enormously, but also had some huge losses. Late 2018, the VET rate peaked at almost € 0,017. Be aware that VeChain has proven to be volatile, so losses can follow profits. Always trade responsible.