What is VET, VeChain, VeThor Token?
VeChain or VechainThor is a smart contract capable blockchain that is focused on enterprise adoption, designed to enhance supply chain management and business processes. You can think of it as a Blockchain-as-a-Service platform, with the aim to interact with all sectors of the market: B2B (business-to-business) and B2C (business-to-consumer). This allows for the development of Dapps that will interact with the IoT (Internet of Things) devices, for example:
- Anti-counterfeit for brands - Vechain Toolchain can create anti-counterfeit tags that are powered by smart chips and smart contracts.
- Automobile - Vehicle data and records being stored on chain would be tamper proof.
- Carbon emissions - Tracking carbon contributions of a particular company on chain with the aim to reduce emissions.
- Logistics - Using smart IoT sensors that automatically report crucial data to manufacturers during production.
One of the main ideas behind Vechain is to provide an accessible and simple way for manufacturers to share data with vendors and consumers during the lifecycle of a product.
Key Details of VeChain
- Ticker: VET
- Consensus: PoA (proof of authority)
- Block time: 10 seconds
- VechainThor (VET): used for economic staking and value transfer on the platform. VET holders always generate VTHO (which powers transactions on the network) directly to their wallet, VET can also be staked in various economic nodes which will increase the amount of VTHO generated.
- VeThor Token (VTHO): this is the gas required to pay for network transactions such as transferring VET or interacting with smart contracts. VTHO is consumed and destroyed every time a transaction is made.
- Public blockchain: anyone can interact with the platform, develop and deploy Dapps or smart contracts onto VeChainThor.
- Native Fee Delegation: the blockchain supports natively the feature of fee delegation, which means developers can design Dapps where the gas costs required to perform a transaction are already sponsored enabling people to use them without holding any VET or VTHO.
Vechain, much like TRON, is another project that started as a token sale on Ethereum and later migrated into a chain of its own. Also like TRON, Vechain's blockchain, called VeChain Thor, is based on the original Ethereum codebase that makes it compatible with most of the dApp tooling and solidity smart contracts.
Vechain positions itself in the market as a scalable solution for the supply chain industry. They are yet to be a big and noticeable player in the supply chain market, so we cannot really comment on that aspect of the VeChain brand. What we can do, however, is look at their blockchain's tech.
And the tech is nice
Away with faux decentralization of DPoS, VeChain simply states upfront that they have selected 101 authority nodes (very similar to masternodes, or to Facebook's Libra design) that will run proof of authority consensus that is commonly used by Ethereum testnets. The choice logically makes perfect sense - a secure proof of stake algorithm for Ethereum has not been invented yet, going PoW as a minority chain is suicidal, and PoA is a well tested solution for a consortium chain. We really appreciate the openness and clarity on the topic.
Utilizing PoA allows VeChain Thor to have higher transaction throughput compared to mainnet Ethereum, and be secure as long as you trust that 51 out of 101 masternode nodes will not collude against you. Unfortunately, for those living in the western world it seems that the majority of masternodes, and majority of VeChain's marketing efforts lie in Asia - it would be nice to hear more from the VeChain team and to have this PoA-flavored EVM more widely used.
Future is bright!
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