VeChain (VEN) – What You Really Need to Know

Written by Adolph Obasogie - Reviewed by Coin Review Team

Published: May 2, 2018 | Last Updated: Jan 16, 2019

2024-12-07T22:25:03+00:00

What is VeChain?

Vechain is an enterprise-focused, decentralized platform with an underlying blockchain. The primary use-cases of VeChain are data management, infrastructure for IoT-solutions and supply-chain management. It aims to build a robust infrastructure to prevent data theft, manipulation, and counterfeiting.

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VeChain enables every part of the lifecycle of a product or service to be captured, recorded and transmitted on its blockchain. Their consensus mechanism is Proof-of-Authority (POA), which means chosen accounts validate transactions and blocks. These specific accounts are called “validators.”

The native asset of VeChain is the token VEN, which is currently an ERC20 token but will migrate to VeChains own blockchain once the main net is launched. It also features a smart chip technology, where the ecosystem can be implemented in QR-codes, RFID- and NFC-chips.

It offers two type of masternodes:

Authority masternodes: These nodes are responsible for creating blocks and maintaining the ledger. The number of these nodes is restricted to a maximum of 101 nodes, and each node requires a minimum balance of 250,000 VEN
Economic masternodes: Responsible for stability and consensus, act as a distribution of power. Require a minimum balance of 10,000 VEN.

Each masternode has one vote.

History

The project first appeared in 2007, but the VeChain ICO was held in 2017, and its initial price was 0.90$. VEN rose to power in 2017 and was the first cryptocurrency project that partnered with the Chinese government when it became the blockchain technological partner of the regional government of Guiyang.

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Can it be mined?

No, but tokens can be staked within the PoA-system, similar to Proof-of-Stake.

What differs VeChain from other Cryptocurrencies?

VeChain focuses on the supply-chain management and IoT-industries. They aim to be a solution against counterfeiting by enabling complete tracking of products through their blockchain. And the compound of software and hardware components is something that sets them apart from other blockchain solutions.

How much is it worth today?

What is the total and the circulating supply?

The total supply of VEN is 873,378,637 and the circulating supply at the time of writing is 525,779,138 VEN.

Where can you buy VEN?

You can buy VEN on several cryptocurrency exchanges, most notably Bithump, Binance, and Huobi.

Can VEN be sold for cash?

You can sell VEN for cash on several cryptocurrency exchanges that have fiat-pairings, most notably Bithump.

Future Development

It will launch its main net on 30. June 2018 and every existing ERC20-token will be swapped 1:1 to VET-tokens on their own blockchain.

VeChain will rebrand to VeChain Thor and operate on a two-token system. The main token will be the VeChain token, called VET.

Holding VET will generate VeThor tokens, called VTHO, similar to how GAS is distributed to NEO holders.

Verdict and Rating

5/10
Interesting solution for tracking products and supply-chain management. The downside is that it remains to be seen how the Chinese government will regulate the whole blockchain space.

The consensus mechanism is prone to centralization.

5 / 10.0

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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.