What is Vechain Coin VET? Potential of Vechain and VET Coin

VET Coin is currently ranked among the top 50 cryptocurrencies by market capitalization, according to the rankings on CoinMarketCap. VET Coin is one of the two tokens associated with the VeChain project. VeChain can be considered one of the oldest projects in the cryptocurrency market today. So, what exactly is VeChain, what solutions does it offer, what is VET Coin, and what makes it maintain its appeal nearly a decade after its public launch? This article will help you answer all these questions.

1. WHAT IS VECHAIN?

VeChain is a blockchain-based platform designed to support and simplify supply chain management. The founders of the VET Coin project believe that blockchain is one of the foundational technologies of the current and future generations of information technology, alongside emerging innovations such as VR, AI, 5G, and more. 

Taking advantage of the unique characteristics and advantages of blockchain technology, the VeChain platform is positioned to allow users to transmit data, information, and unprecedented value to each other in special, efficient ways—while ensuring the authenticity of the information.

1.1. The Development Team Behind VET Coin

VeChain was founded in 2015 by Sunny Lu, the former CIO of Louis Vuitton China. With extensive experience and expertise in luxury goods, Sunny Lu combined blockchain technology with IoT applications to create a supply chain management system. The co-founder and current Vice President of Finance of the VET Coin project is Jay Zhang, who is responsible for corporate structure and global financial management. Jay previously held senior financial and risk management positions at some of the world’s top auditing firms, including Deloitte and PwC.

The primary person responsible for all technology-related matters at VeChain and VeChainCoin is Jianliang Gu, who brings nearly 20 years of experience in hardware and software development, as well as IT management. Jianliang previously served as the Chief Technology Officer (CTO) of TCL Corporation before officially joining VeChain in 2017. In addition, Dr. Peter Zhou, who has over 10 years of experience in computer science research and development, holds the position of Director of Research and Development for the VET Coin ecosystem.

1.2. Development History

Here are some notable milestones in the development of the VeChain project:

• 2015: VeChain officially launched by Sunny Lu
• June 2016: VeChain v1.0 released
• May 2017: PwC partnered with the VET Coin project under an incubation program
• Mid-2017: VeChain Foundation established
• Early 2018: Coin VEN rebranded to VET Coin
• 2018: Mainnet VeChain and VeChainThor Wallet officially launched
• April 2019: Launch of VeChain ToolChain 4.0 – a one-stop blockchain data service platform
• March 2020: Release of PoA 2.0 SURFACE consensus algorithm
• May 2021: Introduction of the eNFT concept to the market for the first time

2. SOLUTIONS PROVIDED BY VECHAIN

Unlike many blockchain projects focused mainly on financial markets, VeChain offers diverse, real-world solutions across multiple industries. One of the first notable use cases was an NFT tracking chip placed inside luxury handbags for a French brand, implemented as early as 2015.

Using the same technology, VeChain partnered with Renault to track vehicle maintenance history, mileage, and more. The special feature: the data stored in the chip is immutable, which significantly benefits used car buyers by preventing odometer fraud and increasing trust in the vehicle’s history.

At the same time, VeChain also announced partnerships with BMW and a series of other automakers across Asia and Europe. Additionally, collaborations have been established with LVMH, which applies VET coin’s technology to track luxury leather goods, and Walmart, which uses it to trace the origin of food products sold in its supermarket chain. Other applications supported by VeChain include:

• Carbon reduction and sustainability solutions

• Retail solutions

• Logistics solutions, related to warehousing, inventory, and transportation

• Solutions for manufacturers and importers of liquefied natural gas (LNG)

• Digital document custody

• Digital content distribution

• Agricultural solutions for farms

3. VECHAIN ECOSYSTEM

While enterprises play a crucial role in developing and applying technology on a large scale, the VeChain ecosystem is also designed to reach individuals with various needs. The VET coin ecosystem connects resources, provides support, and creates opportunities for users to participate in alignment with the original goal of building a comprehensive blockchain ecosystem.

Essentially, the VET coin ecosystem includes the following components:

• VeChain: Focused on building and developing the underlying technology, infrastructure utilities, and services within the ecosystem

• Enterprises: Both large and small businesses using blockchain or transitioning business models to develop sustainable applications in the real economy, solving real-world industry challenges

• Startups: Experiment with viable solutions that large enterprises and organizations can adopt at scale, forming collaborative relationships that drive innovation in blockchain

• Community: An essential part of the VET coin ecosystem, including community developers and experts bringing their own projects to enhance diversity

• Research Partners: VeChain has established the VeResearch program to collaborate with academic research partners and improve the foundational technology that supports the ecosystem

• Governance Partners: Organizations and venture capital funds that provide funding and resources to builders and developers within the ecosystem

4. HOW VECHAIN WORKS

VeChain is built on the VeChainThor blockchain, a high-speed smart contract platform optimized and designed to host enterprise-scale dApps.

4.1. SaaS Products

SaaS Products stands for “Software as a Service”, referring to service-based software solutions. With the VET coin project, VeChain provides standardized traceability service products. These are part of the practical applications and solutions that VeChain offers, such as food traceability for Walmart or the AirTrace program for PwC, among others.

4.2. Core Products

The core product suite can be divided into two categories: PaaS (Platform as a Service) and BaaS (Blockchain as a Service). In order for PaaS, BaaS, and SaaS products to deliver optimal results to users, VeChain introduced the VeChain ToolChain — a comprehensive blockchain application platform self-developed and powered by the VeChainThor blockchain.

It helps businesses integrate their operations and data with blockchain in the simplest way possible. Combined with other technologies within the ecosystem, VeChain ToolChain significantly reduces the barriers to adopting blockchain technology in business models.

4.3. VeChainThor Blockchain

VeChainThor is a public blockchain designed for mass adoption by enterprise users of all sizes. It serves as the foundational layer for a sustainable and scalable blockchain business ecosystem. This blockchain not only powers VeChain’s solutions but also underpins the development of the VET and VTHO tokens.

Instead of using traditional consensus mechanisms like PoS or PoW, VeChainThor Blockchain uses the Proof of Authority (PoA) consensus mechanism. This algorithm requires authorized nodes to participate in blockchain consensus. Once authorized, nodes have equal opportunities to propose new blocks and receive rewards. PoA is also network bandwidth-efficient, allowing high throughput, making the blockchain faster and more scalable.

In addition, with BaaS, VeChain’s NFT ecosystem is thriving, supporting both commercial applications and game/supercomputer projects being developed on this platform. By early 2021, a $1 million fund had been launched by VeChain to promote eNFT development, encouraging adoption of the technology in enterprise contexts.

5. WHAT IS THE VET TOKEN?

VeChain operates with a dual-token model within a single ecosystem, consisting of the VET and VTHO coins. The philosophy behind this model is to prevent transaction fees from being directly impacted by VET price volatility, making VeChainThor blockchain more suitable for business/financial operations for both individual and enterprise users.

The VET token generates VTHO and functions as a store of value on the VeChainThor blockchain. Initially, VET was developed on the Ethereum blockchain under the name VEN, before being migrated to VeChain’s own blockchain in 2018 and renamed VET. VET cannot be mined; instead, users can participate in network validation using the PoA mechanism to earn VET rewards.

5.1. Key Information About VET Coin

Here are some essential details investors should know before deciding whether to buy VET:

• Symbol: VET

• Blockchain: VeChainThor Blockchain

• VET Coin Market Cap: 1,879,677,418.61 USD

• VET Coin Price Today: 0.02892 USD

• Maximum Supply: 86,712,634,466 VET

• Circulating Supply: 64,315,576,989 VET

• VET Token Contract Address (BEP-20): 0x6FDcdfef7c496407cCb0cEC90f9C5Aaa1Cc8D888

5.2. VET Token Allocation

With a total supply of nearly 90 billion VET coins, the distribution is as follows:

• Public Sale: 41%

• Individual Investors: 9%

• Enterprise Investors: 23%

• Development Team: 5%

• Network Operations: 12%

• Business Development: 10%

The Public Sale round saw a total of 35,552,180,131 VET tokens sold at a price of $0.0008 per token.

5.3. Use Cases of VET Coin

The VET coin functions as a value transfer medium (smart money) within the VeChain ecosystem, enabling fast and seamless value transfers. It is the primary cryptocurrency that powers the VeChain network. In summary, VET tokens serve the following key purposes:

• Means of Payment

• The more VET coins a business holds on the VeChainThor Blockchain, the greater its influence in the ecosystem.

• To operate and conduct activities on the VeChainThor Blockchain, enterprises must use the VET token.

• Voting rights in the network via nodes – each node type has a minimum VET holding requirement.

Since VET represents access rights to the VeChainThor blockchain, VeChain’s economic model is designed such that VTHO tokens are automatically generated by holding VET coins.

6. SHOULD YOU INVEST IN VET COIN?

VeChain has established strategic and business partnerships with a broad network of leading global corporations, many of whom integrate its technology into their business models. As this enterprise ecosystem expands, it is expected to positively influence the price of VET coin.

The all-time high (ATH) of VET coin was $0.2782 in April 2021, and the most recent peak was around $0.08 at the end of March. If you’re interested in investing in VET, you can easily purchase it on major and reputable cryptocurrency exchanges such as Binance, KuCoin, Huobi Global, and more. VET tokens can be stored in a variety of wallets, including hot and cold wallets. You can also use the VeChainThor Wallet, developed by the VeChain team.

7. SUMMARY

Although there is no specific annual roadmap, this article “What is VET Coin?” has provided insights into the blockchain solutions VeChain offers to enterprises across various industries. With this information, traders and investors can make their own decisions about whether or not to invest in the VET coin.