VeChain What It Is How It Works Examples and History
VeChain is a blockchain platform that improves supply chain management and business processes. It uses distributed ledger technology (DLT) to streamline information flow.
The platform consists of VeChain Token (VET) and VeChainThor Energy (VTHO). VET transfers value within the network, while VTHO powers smart contract transactions.
Key Takeaways:
– VeChain is an enterprise blockchain platform that disintermediates information from data silos and provides a complete view of an organization.
– VeChain aims to become a leading platform for initial coin offerings (ICOs) and transactions between Internet of Things (IoT) devices.
– VeChain utilizes VeChain Token (VET) for value transfer and VeChainThor Energy (VTHO) for smart contracts.
Understanding VeChain:
VeChain’s goal is to create a trust-free and distributed business ecosystem for transparent information flow, efficient collaboration, and high-speed value transfers.
Supply chain data is currently compartmentalized among multiple stakeholders, hindering information flow. VeChain’s blockchain technology solves this problem by allowing data ownership and provides a 360-degree view of product information for authorized stakeholders.
Examples of VeChain’s Use:
VeChain can track and monitor parameters like quality, authenticity, temperature, and transportation of products from manufacturing to delivery. It uses smart chips or RFID tags to broadcast information to authorized stakeholders.
VeChain also enables automobile owners to own their data and negotiate better policies with insurance companies.
History of VeChain:
Founded in 2015 by Sunny Lu, VeChain was initially a subsidiary of Bitse. It transitioned to its own blockchain, VeChainThor (VET), in 2018.
VeChain has strategic partnerships with companies like PwC and Renault, aiming to improve product verification and establish itself as an IoT intermediary.
VeChain’s Blockchain Platform:
VeChainThor is a public blockchain designed for mass business adoption. It has VET as the value layer for smart contracts, similar to Ethereum’s ether or NEO’s "gas."
VTHO acts as the energy token to power transactions on VeChain’s blockchain.
The governance protocol for VeChainThor uses Proof of Authority, where voting rights are based on VET holdings and disclosure. There are master nodes responsible for consensus on transactions, achieving a balance between centralization and decentralization.
