What is VeChain?
VeChain is a blockchain platform designed to enhance supply chain management and business processes. Its goal is to use distributed ledger technology (DLT) to streamline complex logistics and information flows across global supply chains.
VeChain was founded in 2015 by Sunny Lu, a former IT executive at Louis Vuitton, and has since evolved into a leading enterprise-grade blockchain platform. By combining distributed ledger technology (DLT) with the Internet of Things (IoT), VeChain enables the tracking and verification of products and information across complex supply chains.
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About VeChain
VeChain aims to enhance supply chain efficiency while reducing risk and cost. The platform delivers innovative solutions that enable transparency, traceability, and authenticity across a wide range of industries. VeChain works with major global partners such as PwC, DNV GL, and BMW, offering tailored solutions for sectors ranging from luxury goods and fashion to food and beverage.VeChain Foundation
VeChain Foundation
The VeChain Foundation is a non-profit organization responsible for the platform’s growth and strategic direction. It manages governance, fosters partnerships, and ensures the long-term sustainability of the ecosystem.
Key features of VeChain
One of VeChain’s standout features is its dual-token system, which separates value transfer from transaction costs.
VET (VeChain Token) is used to store and transfer value.
VTHO (VeChainThor Energy) is used to pay transaction fees.
This architecture helps keep the platform stable and cost-effective.
VeChain also implements a unique governance model managed by the VeChain Foundation. It allows stakeholders to participate in the decision-making process, ensuring transparent and decentralized management. For network security, VeChain relies on a Proof of Authority (PoA) consensus mechanism, which leverages a selected group of trusted validators to maintain integrity and efficiency.
How VeChain works
VeChain combines blockchain with IoT integration to provide real-time tracking of goods and processes. Smart chips and RFID tags embedded in products track their origin, transportation, and storage. This data is securely stored on the blockchain and made accessible to all stakeholders across the supply chain.
The platform also supports decentralized applications (dApps) that help businesses meet specific supply chain requirements. VeChain ToolChain, a B2B SaaS offering, enables companies to develop and deploy customized applications—without requiring extensive blockchain expertise.
Challenges of VeChain
While VeChain has found success in various areas, it also faces certain challenges. One of the main criticisms is the relative centralization of its Proof of Authority (PoA) consensus mechanism, which relies on a limited number of validators. This setup may be vulnerable to manipulation or downtime, although the platform is actively working to expand and diversify its validator base.
Another concern is the lack of public awareness and adoption, which could be addressed through stronger marketing efforts and educational initiatives. Additionally, VeChain operates in an increasingly competitive market, with other blockchain platforms offering similar solutions.
Outlook and conclusion
VeChain has the potential to transform how businesses manage and optimize their supply chains. By combining innovative blockchain technology with the Internet of Things, the platform offers companies more efficient and transparent operations. With a clear vision and a strong community, VeChain is well-positioned to play a major role in the future of supply chain management.
Despite its promising technology, VeChain still needs to overcome several key hurdles. The platform must raise awareness of its solutions and address concerns about centralization. If it can succeed in these areas, VeChain could emerge as a pioneering force in the blockchain space, fundamentally reshaping how businesses design and improve their operational processes.
Frequently asked questions about VeChain
What is the current price of VeChain?
The current price of VeChain is $0.025. Over the past 24 hours, the price is down 4.30%, with a trading volume of $56.04B. VeChain is the 60th largest cryptocurrency by market cap, currently at $2.14B.
Is it worth investing in VeChain?
The price change of VeChain (VET) over one year is currently +8.39%, making VeChain a good investment in hindsight. Whether this trend will continue in the future depends on many external factors such as supply and demand. Past price trends are no indicator of future performance.
Where can I buy VeChain?
The best and most reputable crypto exchanges for buying VeChain include ones such as Kraken and Coinbase. You can find more in our comparison of crypto exchanges.
Which VeChain wallet is the best?
The best hardware wallets for VeChain are Ledger Nano X, BitBox02 and Trezor Model T. In our opinion, the best software wallet for VeChain is the Zengo app. You can find more in our comparison of crypto wallets.
What was the all-time high of VeChain?
The VeChain (VET) cryptocurrency all-time high is $0.28. This price was reached on Apr 19, 2021. The current price is $0.025, a difference of -91.16% from the all-time high.
Who has invested in VeChain?
VeChain's early investors include institutional investors and venture capitalists (VCs) such as PwC (PricewaterhouseCoopers), DNV GL, Caballeros Capital, Fundamental Labs, Breyer Capital, Myriad Capital Management.
How many VeChain (VET) are currently in circulation?
There are currently 85.99B VeChain (VET) in circulation. The total amount of VET in circulation represents all coins and tokens that have already been distributed and are therefore held in the wallets of private individuals, companies or institutions.
What is the Total Value Locked (TVL) of VeChain?
The Total Value Locked of VeChain (VET) is currently $5.74M. This value includes all assets locked on the blockchain or in DeFi protocols. With a market cap of $2.14B, this results in a ratio of market cap to TVL of 372.28.
