What is Vechain: innovation for traceability?

Qué-es-Vechain
4 min read

Vechain is a blockchain designed to improve supply chain management processes. It seeks to provide retailers and consumers with the ability to determine the quality and authenticity of purchased products. It aims to achieve a secure management ecosystem through the asset digitization method. But it benefits not only the end consumer but also manufacturers and other stakeholders involved in the process.

Several projects went unnoticed in 2017. This happened due to several factors in that peculiar year of the crypto ecosystem. The communicational rumble caused by Bitcoin’s ATH and its subsequent fall, overshadowed the communicational efforts of projects that were fighting for a little more prominence and adoption. During 2018, hangovers from that bullrun in an endless winter for investors and retail were tinged with scammer attacks and unfulfilled promises from the vast majority of the previous year’s ICO.

VeChain Foundation

Although most of the projects that are born or revived every day are focused on the retail investor, it could be said that Vechain targets the B2B market.

The VeChain Foundation was established in July 2017 in Singapore as a non-profit entity. Among its functions, we can list network building, research and technological development of all edges of the protocol.

As a strategy to find new followers, it accompanies companies that are interested in including the qualities that blockchain brings to their internal and external processes. Although their priorities include building from the decentralization paradigm, they consider the possibility of building and establishing a traditional corporate governance within the network.

The objective of this action aims to be expeditious with the decisions to be taken for the benefit of the community. Sunny Lu is its founder and current CEO, and is accompanied by co-founder Jay Zhang who is in charge of financial management.

Qué-es-Vechain

VET and VTHO: The difference between the two tokens

To understand the internal ecosystem of VeChain, we must call the entities by their names. VeChainThor is the name of the blockchain itself, and two currencies are used in it:

    • VET is the acronym used to denominate the VeChain network cryptocurrency on the exchanges. The total supply of this coin was set at a maximum of 86,712,634,466 VET. Currently, its circulating supply is 64,315,576,989 coins.It reached its all-time high price last April 17, 2021, when its price reached US$0.28 on different exchanges. VET is the token used to carry value or “smart money” from smart contracts.
    • VTHO, meanwhile, is known by the name Ve(Chain)Thor Energy and drives transactions on the network. It represents the cost of transactions on the VeChain Thor blockchain and could be equated to the function served by GAS in Ethereum.

Neither Pow nor PoS: Vechain’s consensus is for PoA

Proof-Of-Authority is a mechanism that relies on the reputation of representatives participating in a blockchain. In Vechain they materialize as masternode operators.

This involves verifying the identities of the members, i.e. making them public. It also requires that this member is willing to invest and put his reputation as a guarantee, which would prove that he is not a speculator and that he is motivated to participate in the medium or long term.

The selection of members must respond to a standardized system to strengthen the condition of equality of selection and permanence.

Chain nodes: technology support

Currently 973,624 wallets are VET holders. Its standard is VIP-180.

Vechain currently has;

  • Authority nodes: 101
  • Economic nodes: 2.350
  • Nodes X: 3.062

One third-party initiative is the decentralized exchange Vexchange.