VeChain’s technology can be used in a variety of sectors, from automotive, to food, to luxury goods. VeChain offers the ToolChain platform on which all kinds of services are offered from supply chain management, to tracking the life cycle of products (e.g. useful for fresh products), data certification, and various other options. Both large and small companies can use these services. VeChain has a strong focus on improving products and services of existing companies with their technology.
The ToolChain Platform
The ToolChain platform is described as a Blockchain-as-a-Service (BaaS) platform, on which various services are offered. Not only can blockchain technology be used to further improve brand perception and value, it also helps companies to expand to new business models using immutable data (data on the blockchain that cannot -easily- be changed and is therefore safe) .
The standard version of the platform enables companies to use an extensive blockchain solution without needing knowledge of code. This makes it very easy to use while being able to meet high requirements at the same time. Companies can sign up for a trial version for free. The developer version goes a step further. With the developer version, developers can use additional tools such as powerful APIs, an SDK toolkit and capture everything in detail. This makes it easy to develop blockchain solutions without much knowledge of blockchain technology. The platform claims to be cost effective, fast and reliable.
The platform is fully functional and combines hardware with software to provide good blockchain solutions. This solution consists of mobile apps, IoT chips, sensors, the VeChainThor blockchain service, etc. This makes it possible to capture the entire life cycle of products from raw materials to the end user.
The team started in 2015 with the VeChain project. The goal has always been to build a distributed and reliable ecosystem for businesses to enable transparent information flows, rapid value transfers and efficient collaborations. VeChain currently operates from seven different offices and has more than 100 employees, 50 of whom are professional developers with experience in blockchain applications (source: VeChain).
VeChain partners with several universities such as Stanford University, Oxford Mathematical Institute, Dartmouth College and many others to attract the best team members.
The CEO and Co-founder is Sunny Lu, he has over fifteen years of experience as an IT executive in Fortune 500 companies and has been CIO at Louis Vuitton in China. The other Co-founder and CFO is Jay Zhang, he has fifteen years of experience as a senior manager in risk management and financial affairs. The rest of the management team can be viewed on this page.
VeChain uses two different tokens: VET and VTHO. VeChain aims to make the use of their blockchain solutions affordable. This is possible by separating the speculation side from the use case side, in this case with two different tokens. This makes the costs predictable for users of the BaaS platform.
VTHO is distributed to all VET Token holders. With every transaction, 70% of the VTHO is destroyed to stabilize the price. VET can therefore be seen as the smart / online money, which is useful for financial activities and business activities, while VTHO can be seen as energy to pay for business activities and the execution of smart contracts (similar to gas).
VET token holders can also apply to host a node to participate in the network. There are economic nodes and authority nodes. Economic nodes do not participate in validating blockchain transactions, they do however provide benefits to VET token holders that do not run a node, and help with the overall ecosystem. Authority nodes are used to validate all blockchain transactions, and so the requirements to run an authority node are much higher than the requirements to run an economic node.
For a full overview of all requirements and specifications of all different nodes, check out this useful website: https://vechaininsider.com/guides/guide-to-vechain-nodes-and-node-rewards/#nodes
First, it’s important to share that I’m not an expert on VeChain. I’ve followed VeChain for a long time, however, I haven’t been an active community member for the past two years.
VeChain has always been a project with enormous potential. VeChain is currently the #19 project by market cap, meaning so far they’ve already proven to be successful in that area. As a company, I feel confident that they will succeed in their mission by making blockchain solutions easy to use and by having a strong focus on the end user.
VET is held by many of my friends, most of them also run economic nodes (X-nodes). Meaning they are confident in the long-term price of VET. Even though I believe in the team, I do not hold VET Tokens, nor am I planning to hold them in my long-term portfolio. The main reason for this is because I prefer to ‘invest’ in projects I truly understand and follow on a frequent basis. Therefore, I’ll leave the speculation of the VET token up to other experts.
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