Diving into VeChain (VET)

What is VeChain (VET)?

VeChain (VET) serves as the cryptocurrency underpinning the VeChain blockchain, a decentralized platform designed for managing supply chains and overseeing product lifecycles. Utilizing blockchain technology, VeChain monitors the movement of goods from their raw material stage to the finished product. This serves to verify product authenticity, establish provenance, and combat fraud and counterfeiting.

Prominent companies and organizations such as Walmart China, BMW, and LVMH have adopted VeChain for their operations. Additionally, VeChain plays a vital role in tracking the supply chain of COVID-19 vaccines.

Within the VeChain ecosystem, two cryptocurrencies are prominent: VET and VTHO. VET functions as the native cryptocurrency of the VeChain blockchain, facilitating transaction fees and network security. In contrast, VTHO serves as a utility token, employed to cover the costs of utilizing various VeChain services, including data storage and smart contracts.

VeChain provides numerous advantages, including:

Transparency: By harnessing blockchain technology, VeChain ensures the comprehensive tracking of goods and products along the supply chain. This enhances transparency, and traceability, and mitigates fraud and counterfeiting.
Efficiency: VeChain contributes to supply chain efficiency by automating tasks and diminishing the need for extensive paperwork.
Security: Employing blockchain technology bolsters data security and safeguards against cyberattacks.
Sustainability: VeChain supports sustainable supply chains by monitoring the environmental impact of products.

How does VeChain (VET) work?

VeChain operates by combining blockchain technology with Internet of Things (IoT) devices, which are sensors and other tools capable of gathering data about both the environment and the products they are attached to. This data is then securely stored on the VeChain blockchain, allowing all participants in the supply chain to access it.

Here's a simplified illustration of how VeChain functions:

Manufacturers affix VeChain-enabled IoT devices to their products.
These IoT devices gather information about the product, including details like temperature, location, and timestamps.
The collected data is transmitted to the VeChain blockchain, where it's recorded within a smart contract.
All members involved in the supply chain can retrieve and utilize this data from the VeChain blockchain.
Manufacturers can employ the data to monitor their product's journey through the supply chain, ensuring proper handling.
Retailers can utilize the data to authenticate products and provide customers with information regarding their origins.
Consumers can access the data to gain insights about the product, aiding them in making informed purchasing choices.

VeChain employs a dual-token system: VET and VTHO. VET serves as the native cryptocurrency for the VeChain blockchain, used for transaction fees and network security. On the other hand, VTHO functions as a utility token, facilitating payments for VeChain's services like data storage and smart contracts.‍

The Historical Evolution of VeChain (VET)

VeChain (VET) emerged in 2015 under the guidance of Sunny Lu, a former Louis Vuitton China executive. Sunny's vision was to establish a blockchain-based platform geared towards enhancing supply chain transparency and efficiency.

In 2018, VeChain officially launched its mainnet, swiftly garnering the attention of businesses. The year 2019 marked a significant milestone as VeChain formed a strategic partnership with Walmart China to monitor the movement of food products across the supply chain. Additionally, VeChain forged alliances with prominent corporations like BMW, LVMH, and PwC.

VeChain's journey has witnessed remarkable growth. In 2018, VET traded at approximately $0.01, but by the conclusion of 2021, its value had surged to around $0.12.

Several driving factors contributed to VeChain's ascent:

The increasing integration of blockchain technology within the corporate landscape.
The rising demand for transparency and efficiency within supply chains.
A growing consumer preference for sustainable products.

While VeChain remains relatively new in the field, its impact on the supply chain industry is already substantial. VeChain stands poised to emerge as a leading blockchain platform for both supply chain management and product lifecycle oversight.

Here's a chronological overview of key milestones in VeChain's history:

2015: Sunny Lu founds VeChain.
2016: VeChain conducts its ICO.
2017: VeChain forms pivotal partnerships with BMW and PwC.
2018: VeChain successfully launches its mainnet.
2019: VeChain enters a strategic collaboration with Walmart China.
2020: VeChain expands its network by partnering with LVMH.
2021: VeChain introduces the VeChainThor PoS 2.0 mainnet.

Key Adoptions of VeChain (VET)

VeChain enjoys widespread adoption among prominent corporations and institutions, such as:

Walmart China: VeChain is employed by Walmart China to monitor the flow of food products throughout its supply chain. This aids Walmart in maintaining product quality, and safety, and minimizing food wastage.
BMW: VeChain plays a pivotal role in BMW's efforts to trace the manufacturing and distribution of their vehicles, enhancing supply chain efficiency and cost reduction.
LVMH: LVMH, a renowned luxury goods company, relies on VeChain to track its product journey within the supply chain, ensuring product authenticity and guarding against counterfeiting.
PwC: The professional services firm PwC utilizes VeChain to develop innovative blockchain solutions for its clients.
DNV GL: DNV GL, a certification and risk management firm, collaborates with VeChain to create a blockchain-based platform for supply chain certification.

Beyond these notable adopters, VeChain also finds application in numerous startups and enterprise entities. It is increasingly recognized as a versatile blockchain platform serving various purposes, including supply chain management, product lifecycle management, and food safety.

‍Conclusion

As VeChain continues to expand its presence in various industries and foster partnerships with global companies, its potential for growth and adoption remains high. Its focus on real-world applications and supply chain management positions it as a cryptocurrency with a tangible impact on businesses and consumers alike.

How to buy the best cryptos now

With Normal, you can instantly invest in perfectly diversified crypto portfolios like the Top 10, Top 30, AI/Data Index, and beyond in just a few seconds.

Simply connect your favorite crypto exchange (or create an account - we’ll help with this), select a portfolio you like, and invest!

Using Normal to invest in crypto saves a ton of time and money on the fees you’d traditionally pay.

So if you’d like to help us secure crypto’s decentralized future and invest in markets with ease, head on over to https://app.normalfinance.io/ and get started today!

Sources

‍