VeChain (VET) current price is $0.00574 with a marketcap of $318.68 M. Its price is -1.04% down in last 24 hours.
- VeChain (VET)
- Live Price $0.00574
24h % -1.04%
- Market Cap$318.68 M
- Volume$28.05 M
- Available Supply55.45 B VET
More Info About Coin
Sunny Lu, CEO of VeChain announced in February of this year that the new name of the cryptocurrency would be VeChain Thor. VeChain Thor is primarily designed to be a platform for a relatively narrow range of business applications, with a specific focus on tracking systems that is ideal for inventory applications.
VeChain uses Ethereum as the basis for its cryptocurrency, and it follows the same basic model of using smart contracts to conduct transactions in the blockchain. But it deviates from Ethereum by modifying the consensus method of governance with a unique Proof of Authority algorithm. It has been described as a fusion blockchain, where modern technology meets the anti-Ethereum concept of a centralized server.
This means that instead of seeking to arrive at a community consensus, the authorization will come from the confirmation of the authority of the centralized validator. At first this might seem more than odd, but VeChain’s focus is on real world business situations, including government uses.
One of the sticking points in the adoption of cryptocurrency for many governments is their inability to have centralized authority in the conduct of transactions, both on the financial end and on the tracking end.
Other than governments, other VeChain targets for adopting the platform include sellers of liquor, luxury goods, automobiles, agriculture, and logistical support. Geographically, the Far East is of particular interest as their industrial sectors continues to grow at a very fast rate, requiring long term solutions that are both scalable and secure. With the fusion-type governance model, it meets both these requirements.
The modern technologies have been applied to make VeChain both high frequency and high volume, solving the issue of scalability. The company has made developer kits available so as to encourage other people to jump on board and support inter- and intra- company development of applications.
As we know from other struggling cryptocurrencies, attracting active developers to work on the project is essential to pique investor interest and to get the necessary developer talent involved to address potential future problems.
It is fair to ask why VeChain would violate one of the key tenets of the cryptocurrency model – decentralization. It has justified this decision by creating and including the first cryptocurrency Disaster Recovery Plan. This is an absolute necessity for governments and businesses to have when unexpected events occur that causes operations to shut down or be suspended, such as natural disasters.
This is a far more difficult task when the ecosystem is decentralized. VeChain also achieves a higher degree of transparency in the storage of the cryptocurrency, reassuring investors that their currency is safe.
One of the more common criticisms of cryptocurrencies that come from both governments and business is that with all the focus on the technology and experimenting with new ways of making transactions secure and private, these entities simply want a platform that gets things done.
Technology is great, but when customer demands continue to pile up governments and businesses need solutions. VeChain’s model does exactly that.
The base token of VeChain Thor is VET, of which there is a precise number of 867,162,634 in circulation today. The VeChain Foundation, the centralized governance authority based in Singapore, is said to have the lion’s share of this amount. Of the original sale of 1 billion, only 132,837,366 are still available.
This seems to give a lot of control to the foundation, but we need to remember that we are dealing with a centralized authority concept.
One of the things VeChain has got going for it is a couple of high profile customers in the company of BMW and the country of China. These clients give VeChain the public and investor visibility it needs to continue moving forward and seeing the price of its cryptocurrency rise. If you have been following the Asian cryptocurrency markets, you are likely to have already heard of it.
An overlooked feature of VeChain is that it is demonstrating that cryptocurrencies are not all about money and finances, which has the potential to undercut the criticism of the industry that it is nothing more than a techno Ponzi scheme. Ethereum stands to benefit from their success, and with the disaster recovery plan in place it makes investors feel a whole lot easier.
Pros & Cons
|The global need for this service||Lack of specific industry focus|
|Commercial and government partnerships||Some centralization|
|Highly skilled and accomplished team|
BCrypto Investment Tip
VeChain is a cryptocurrency that has been designed to “leveraging on blockchain technology. VeChain strives to build a trust-free and distributed business ecosystem, which is self-circulating and scalable.” It focuses on harnessing the power of the blockchain technology and connecting it to the real world. It does this by holistically providing a governance framework and a robust economic model that seamlessly integrate with the Internet of Things (IoT). It is also a platform for building decentralized applications. Recent partnerships with companies such as BMW are starting to show the strengths of this projects.