VeChain is a blockchain platform aimed at enhancing the supply chain and business management processes. By leveraging Distributed Ledger Technology (DLT), VeChain enables transparent and secure tracking of products from production to consumption.
About VeChain (VET)
VeChain (VET) stands at the forefront of the blockchain revolution, offering smart solutions to global supply chain issues. Founded in 2015 by Sunny Lu, former CIO of Louis Vuitton China, and Changpeng Zhao, founder of Binance, VeChain distinguishes itself through an innovative approach to enhancing transparency and security in supply chain management via blockchain technology.
VeChain introduces a unique concept within the blockchain ecosystem by utilizing unique identifiers (such as NFC, RFID, or QR codes) for each product, allowing for real-time tracking and authentication of products throughout their supply chain.
By securely storing product-related data on the VeChain blockchain, each entry becomes immutable and transparent, providing greater trust and authenticity for consumers and other stakeholders.
VeChain also employs smart contracts to automate critical supply chain processes like payments and notifications, eliminating the need for intermediaries.
VeChain (VET) Working Mechanism
VeChain’s core technology, VeChain ToolChain, provides a comprehensive suite of PaaS, SaaS, and BaaS tools enabling businesses of all sizes to easily integrate blockchain technology into their operations.
From product lifecycle management to carbon credit solutions, VeChain ToolChain supports product transparency and deeper insights into the product lifecycle. By offering restful APIs, VeChain facilitates secure information exchange between different systems over the internet, strengthening blockchain adoption across various industries.
Uniqueness of VeChain (VET)
What sets VeChain apart is its dual-token economic model (VET and VTHO), designed to create a stable trading environment and separate blockchain usage costs from market speculation.
This ease of adoption for companies enhances user acceptance. Moreover, VeChain’s approach to blockchain governance, emulating a DAO model and enhancing transparency through regular reporting and compliance, demonstrates its commitment to ongoing innovation and sustainability.
By providing a secure, decentralized, and scalable infrastructure, VeChain not only paves the way for more efficient collaboration among individuals, businesses, and institutions but also fosters the creation of more inclusive and sustainable value.
By bridging the physical and digital worlds, VeChain enables active participation in shaping a more sustainable value chain and fosters new collaborations that result in significant social impact.
Advantages and Disadvantages of VeChain (VET)
VeChain boasts several advantages that set it apart from other blockchain platforms. One of its strengths is the use of Proof of Authority (PoA) to reach consensus among blockchain nodes, providing an equal opportunity for each “authorized” node to publish blocks and earn rewards from transaction fees. This creates a more stable and efficient environment for VeChain users. Additionally, VeChain has received support from the Chinese government and has established partnerships with major companies such as PwC, DNV GL, Microsoft, and Renault, affirming its credibility and reliability. The platform is also designed for commercial use, allowing a wide range of business and financial activities to operate on it.
However, VeChain also has some drawbacks. Rapid growth can pose a risk without proper guidance. The PoA system, relying on 101 nodes to validate transactions, makes VeChain not fully decentralized, which could be a problem if some nodes become corrupt. Furthermore, VeChain’s collaboration with various industries may make it challenging for the team to deliver excellent results for every market niche.
From a business perspective, VeChain offers flexibility for both small and large companies to optimize their supply chains with highly transparent and secure solutions. The platform has been adopted by leading companies, affirming its quality and reliability. A robust anti-fraud system with advanced cryptographic encryption makes VeChain an ideal choice to combat fraudulent activities.
However, there are high costs and requirements to become a Masternode in the VeChain network, which can be a barrier for individuals or small companies wanting to actively participate in the network. Moreover, although VeChain has shown potential, the use of this technology is still limited in some cases, restricting its impact on industry-wide adoption.
Features of VeChain (VET)
VeChain offers a range of unique features distinguishing it from other blockchain platforms. A key feature is its dual-token economic model, consisting of the VeChain Token (VET) and Thor Power (VTHO). VET serves as a store of value and smart payment currency, while VTHO is needed to interact with the blockchain, such as executing smart contracts and transferring tokens.
This dual-token system allows transaction fees to remain stable and unaffected by VET price fluctuations, with two main parameters that can be adjusted through voting to maintain transaction cost stability.
VeChain also introduces the VIP-180 and VIP-181 standards, which provide basic functionality for tokens and Non-Fungible Tokens (NFTs) in smart contracts, similar to the ERC-20 and ERC-721 standards in Ethereum.
Other features include VeChain ToolChain, which enables businesses to easily implement blockchain technology, and VeKey, a hardware wallet created by VeChain.
Key Figures in VeChain (VET)
Key figures in the development and growth of VeChain include Sunny Lu, Qi Ge, and Renato Grottola. Sunny Lu, the founder of VeChain, is a pioneer who began exploring business applications of blockchain and has extensive experience in information technology strategy and digital innovation. Prior to VeChain, Sunny was the CIO at Louis Vuitton China.
Qi Ge is an expert in material chemistry and nanotechnology, focusing on developing new solutions for energy and environmental issues. Qi Ge’s use of smart materials aims to improve waste management and reduce the carbon footprint of waste disposal.
Renato Grottola is a senior executive with expertise in business assurance and digital transformation. Renato has led the deployment of blockchain technology for digital assurance and serves on the Scientific Innovation Committee of San Marino as well as the Blockchain Expert Panel for the Italian Government.
VeChain fosters digital collaboration that was previously impossible by uniting communities and companies, global leaders, and individuals worldwide to form a safer and fairer food system, improve access to life-saving medications, drive the automotive industry with clean solutions, and more, all aimed at shaping a greener, bolder, and better world that can sustain us all.
History and Development of VeChain (VET)
VeChain, initiated as a project in 2015, has evolved into one of the leading blockchain platforms targeting issues in supply chain management through distributed ledger technology.
Its founder, Sunny Lu, formerly the CIO at Louis Vuitton China, envisioned enhancing transparency and security in the global supply chain by harnessing blockchain. With a strong background in information technology and digital innovation, Sunny Lu has steered VeChain through various significant development stages.
A distinctive feature of VeChain is its dual-token economic model comprising the VeChain Token (VET) and Thor Power (VTHO). VET serves as a store of value and payment currency, while VTHO is required for blockchain operations such as executing smart contracts and transferring tokens.
This system is designed to keep transaction costs stable even as the price of VET increases, by providing the ability to adjust parameters like the amount of VTHO needed per transaction and the amount of VTHO generated by VET.
VeChain also introduced the VIP-180 and VIP-181 standards, which provide basic functionality for tokens and Non-Fungible Tokens (NFTs) in smart contracts, similar to the ERC-20 and ERC-721 standards in Ethereum. VeChain ToolChain and VeKey, a hardware wallet created by VeChain, are among other innovations that enable blockchain adoption across various industries.
In terms of governance, VeChain is regulated by a Steering Committee elected by node holders and represents the interests of stakeholders in the VeChainThor ecosystem. This committee oversees various functional committees and represents an initial step towards decision decentralization within the ecosystem.
Since its inception, VeChain has garnered attention and collaboration with several big names and institutions, including CREAM, DNV GL, PwC, and has received investments from Breyer Capital, Draper Dragon, and Fenbushi Capital. VeChain has also established national-level partnerships with the governments of China, Cyprus, and San Marino to encourage the adoption of blockchain technology in government operations and financial services.
Throughout its journey, VeChain has consistently demonstrated transparency in its finances and is committed to advancing the blockchain ecosystem through various buyback programs and incentives for decentralized application (dApp) developers.
How to Buy VeChain (VET)
Interested in purchasing this particular crypto asset? You can buy VeChain (VET) by following these steps:
- Install Nanovest app on the App Store or Play Store.
- Register according to the instructions.
- Verify your identity for security and convenience when buying crypto through the KYC feature which you can do in just 1 minute.
- Top Up your balance to your Nanovest account.
- Go to the Crypto menu, search and select VeChain (VET).
- Click the Buy button and confirm the purchase with your desired amount. You can start with only IDR 5,000.
Before investing in the crypto asset, be sure to conduct research and analysis first. You can do this by checking the crypto asset profile, industry conditions, monitoring price movement trends, and observing its liquidity and trading volume. Performing this analysis is crucial so you can formulate an accurate investment strategy and minimize losses.
Is it Safe to Buy VeChain (VET) on Nanovest?
Absolutely. Nanovest is supported by a number of professional partners with a strong reputation for providing quality services. One of these includes the technology backing of the S-Quantum Engine by Sinarmas Financial Services.
For global and US stocks, Nanovest collaborates with brokers registered with the Financial Industry Regulatory Authority (FINRA) in the United States – which ensures Nanovest users’ broker accounts up to US$500k by the Securities Investor Protection Corporation (SIPC) in the United States.
As for crypto assets, Nanovest is an Indonesian crypto exchange registered with the Commodity Futures Trading Regulatory Agency (Bappebti). The Nanovest platform itself is also insured through a partnership with Sinarmas Insurance.
All content on this website is for informational purposes and doesn’t constitute a recommendation to buy/sell any stock or crypto. Investors should understand the nature of stocks and digital assets, including return and risk requirements of the assets. We encourage investors to fully understand the assets and risks before making any investment. Always do your own research.