Cryptocurrencies serve a variety of purposes beyond financial transactions. While financial applications are prevalent in some areas, others pursue different aims. VeChain, for example, addresses the issue of counterfeiting. At this point, you might be curious about the connection between cryptocurrency and counterfeiting.
This guide introduces VeChain, a cryptocurrency based on robust technology, which offers a promising solution. Discover below what this blockchain is, its purpose and what our predictions are for VeChain’s future.
What Is VeChain?
VeChain is a tier 1 blockchain platform with two tokens, VET and VTHO. As stated on its website, VeChain calls itself the “blockchain for our better world”.
The VeChain Timeline
The primary goal of the VeChain blockchain is to address counterfeiting. Additionally, the blockchain is expanding its presence in the field of decentralized finance (DeFi) by developing decentralized applications (dApps). Currently, there are approximately 100 applications on VeChain, including a decentralized exchange (DEX).
As noted in its white paper, VeChain’s ambition has continued to grow over the years:
In 2017, VeChain’s goal was “Building a platform to enable transparent information flow, effective collaboration and high-speed value transfers.”
In 2019, its objective was to “Reduce barriers and empower businesses with blockchain technology to create value and solve real global economic problems.”
By 2023, VeChain’s focus was on “Multiplying individual impact to unlock our collective potential for sustainable development.”
According to data from CoinMarketCap, the price on VeChain charts is $0.022.
The capitalization of the VeChain network is over $1.5 billion USD, ranking 38th in the world between NEAR Protocol and ApeCoin. The VTHO token ranks 301st in the world, which means VeChain might recover.
VeChain’s origin dates back to 2015, making it one of the oldest smart contract platforms on the market as the developers published their first white paper that year.
VeChain founder Sunny Lu, who previously served as the CIO at Louis Vuitton in China, is one of the prominent figures associated with the cryptocurrency. Another figure linked with Sunny Lu is Jay Zhang who had a background at Deloitte and PricewaterhouseCoopers before joining the VeChain project.
In 2017, the platform launched its ICO (Initial Coin Offering) by placing its VEN token on the market, which was an ERC-20 token running on the Ethereum blockchain. It was also during this year that the VeChain Foundation was established and held its first steering committee.
The following year, in 2018, the platform progressed by launching its own blockchain and transitioning its VEN token to VET. Additionally, the VTHO token was introduced.
In 2019, developers published a 2.0 white paper, and the first smart contracts started to be launched on the blockchain.
Starting in 2020, the platform solidified partnerships with various Chinese companies as well as the State of San Marino. By 2021, the VET cryptocurrency reached its all-time high price of $0.27 on April 17th. In March 2023, the developers released the third version of their white paper.
As stated previously, VeChain’s value is primarily in its goal to combat counterfeiting.
Currently, the global counterfeit market is valued at several hundred billion dollars, impacting luxury brands across various sectors such as clothing, medicines and watches. The estimated loss for brands is about 7% of their annual turnover. In response to this issue, VeChain offers a solution for luxury brands and their clientele.
VeChain enhances the quality of manufacturers’ supply chains by integrating blockchain technology into the Internet of Things. Specifically, the VeChain blockchain records comprehensive product information from design to usage.
With VeChain, a customer can accurately determine the product’s manufacturing origin. Blockchain outperforms current tracking systems such as QR code and RFID due to its tamper-proof nature and ability to make all data public. In essence, VeChain acts as a “digital label” that tracks all product-related information.
Blockchain applications extend beyond luxury to areas vulnerable to counterfeiting. VeChain’s blockchain advantages also make it suitable for applications in the food sector, ensuring compliance with the cold chain, for example. Notably, the state of San Marino recently utilized the VeChain blockchain to store users’ health passes as NFTs.
In recent years, VeChain has expanded its focus to include environmental initiatives.
It is recognized as one of the most eco-friendly blockchains and has ventured into the carbon credits sector. Developers are working to establish a solution to track the carbon footprint of companies or individuals. Additionally, the blockchain would implement a token-based bonus/penalty system to incentivize reductions in carbon footprint.
How Does VeChain Work?
The VeChain blockchain is characterized by three key features. Firstly, it has the capability to process a large volume of transactions with an estimated scalability of 10,000 TPS. Additionally, VeChain is known for its environmental efficiency. According to its white paper 3.0, the energy cost of a transaction is merely 0.000216 kWh, equivalent to 0.04% of a so-called “comparable” blockchain. In 2022, the carbon footprint of the VeChain network was recorded at 4.46 tons of CO2.
VeChain’s Distinguishing Features
The impressive performance is primarily attributed to its consensus protocol. VeChain’s blockchain utilizes POA, or Proof-Of-Authority, which was developed by Gavin Wood, who is a key figure behind the Ethereum (ETH) and Polkadot (DOT) cryptocurrencies.
In contrast to the POW (Proof-Of-Work) model employed by Bitcoin and the POS (Proof-Of-Stake) model used by Ethereum, POA distinguishes itself through its selection of transaction validators. This approach enables efficient utilization of a reduced number of validators. Presently, the network comprises 101 nodes for validation.
The distinctive mechanism of Proof of Authority 2.0 ensures both data integrity and high scalability.
VechainThor relies on only 101 authority nodes to validate and sign blocks on the blockchain. This enables the processing of transactions and validation of blocks in a shorter time and with lower processing power and energy consumption compared to other blockchains.
Finally, the last major characteristic of VeChain involves its use of two tokens, VET and VTHO. Put simply, when VeChain staking with VET tokens, income is received in VTHO tokens. The VET token facilitates transactions, and VTHO is used to pay transaction fees. As an illustration, it can be compared to VET being a car and VTHO acting as fuel.
This principle also applies to Ethereum with ETH cryptocurrency and gas fees.
Where to Buy VeChain?
As a cryptocurrency, VET coins cannot be purchased from banks. The easiest method is to utilize online crypto exchange platforms, also known as exchanges, which facilitate the buying, selling and trading of cryptocurrencies. Many exchanges exist within the field with major exchanges being recommended for added security.
Some experienced individuals have a significant history in purchasing crypto, leading to valuable feedback. However, the question remains: Where can you buy or make VeChain forecasts?
Indeed, VeChain is not among the top 20 cryptocurrencies globally. In other words, it is not widely known and is not available on all exchanges. For instance, VeChain cannot be purchased on Coinbase, one of the world’s largest exchanges. Nevertheless, finding an exchange that offers VeChain trading should not be overly challenging.
We recommend using the following three exchange platforms: Binance (read review), Crypto.com (read review), and KuCoin (read revi ew). On each platform, the steps to purchase VeChain are relatively similar.
After creating a free account and completing the verification process, you will need to connect your crypto wallet for secure storage of your cryptocurrencies. Following this, funds are deposited into the exchange’s account, and then you can proceed to buy VeChain by selecting the appropriate trading pair.
These three exchanges are significant players in cryptocurrency and offer comparable services and security. However, if one were to be chosen, we recommend Binance. As the world’s largest exchange, Binance boasts the broadest ecosystem. Its user interface is straightforward and suitable for newcomers to cryptocurrency.
Most notably, Binance allows the direct purchase of VeChain using a bank card, be it debit or credit.
VeChain Fear and Greed Index
Updated:: 23 February 2024
Now: 79 Extreme Greed
Now: 79 Extreme Greed
Yesterday: 78 Extreme Greed
Last Week: 70 Greed
Is Buying VeChain a Good Investment?
The VeChain crypto is considered a sound investment for a variety of reasons. Firstly, it is built on robust and environmentally-friendly technology, making it highly appealing in a time when the environmental impact of blockchains is increasingly important.
Moreover, blockchain technology has a wide range of applications. While cryptocurrency can certainly serve as a store of value, it also offers an effective solution to counterfeiting and addresses the consumer need for transparency by providing access to product information.
As previously discussed, VeChain’s role extends beyond combating counterfeiting and encompasses various sectors such as health, food and the environment. The platform’s utility is evident through its adoption by major industry players such as BMW, Bayer China, LVMH, Renault and AWS.
The widespread adoption of VeChain solutions could significantly impact the price of the currently undervalued VET coin. In the spirit of transparency, however, there is an aspect of VeChain’s operations that warrants attention.
It is not related to the ambition or technology of VeChain but rather to its geostrategy.
The platform’s strong ties and partnerships in China, as well as its direct involvement in projects with the government, may pose a barrier to its global adoption. As a result, one of the forthcoming challenges for VeChain cryptocurrency will be to break away from China and expand into other markets.
The Advantages and Disadvantages of Vechain
Crypto which has many applications
Blockchain which allows the development of smart contracts
Too much dependence on China and the Chinese government
Cryptocurrency not listed on some exchanges
Our Final Opinion on VeChain
The VeChain blockchain is notable for its energy efficiency, which is a significant advantage. Its primary focus is to provide a practical solution for manufacturers and consumers as opposed to being a speculative meme coin like ApeCoin.
VeChain’s ability to trace a product’s information throughout its life cycle offers consumers reassurance about product quality. Developers are actively enhancing the blockchain, releasing a new version of the white paper.
At present, the VeChain price in USD is significantly undervalued. Like many other cryptocurrencies, VeChain has experienced the impact of the bear market. Nevertheless, its practical applications have the potential to foster greater adoption and consequently drive its value in the near future.
In conclusion, VeChain presents an intriguing investment opportunity with its VeChain staking feature and strong potential for price growth. By analyzing the VeChain stock price and market fluctuations, investors can make informed decisions about the chances that VeChain will go up in value.
FAQ - Frequently Asked Questions About Vechain Crypto
What is VeChain?
VeChain is a blockchain platform that specializes in tracking information relating to goods, food or people.
Where to buy VeChain crypto?
The VeChain crypto is present on certain crypto exchanges such as Crypto.com, Binance or KuCoin.
Can I buy VeChain on Binance?
Yes, it is possible to buy VeChain on Binance. The exchange allows you to buy VeChain directly with your bank card.
Is VeChain a good investment?
VeChain has many interesting features. In particular, it is one of the most eco-friendly blockchains on the market.
Is VeChain a blockchain?
After operating on Ethereum, VeChain has had its own blockchain since 2017 on which its Vechain coin (VET) operates.
In seeing a digital world explode, Joseph invested his writing in the field of technology over 8 years ago. As a leading-content creator, he believes in clarity, credibility and writing topics people want to read. From blockchain to Web3.0, Joseph sees no shortage of developments as crypto pushes forward. He’s become a voice in technology that people can trust and look forward to hearing more from.