In 2015, VeChain VEN was introduced onto the Ethereum blockchain. After their ICO raised almost $20 million in 2017, VeChain shifted to its own blockchain and became VeChain Thor (VET). Many similarities still exist between VeChain Thor and Ethereum, despite their focuses being two very different worlds.
VeChain Thor aims to bring the brilliance of blockchain technology to tackle some of the biggest issues that affect modern supply chain reporting, specifically targeting the Internet of Things (IoT). Using smart contract technology and identifiers like RFID, QR codes, and NFC chips, VeChain is designed to help track and report on products within the supply chain throughout their lifetime.
VeChain offers a novel, end-to-end approach to streamline supply chain information and quality control. The platform can be used to track any number of things including storage temperatures, point of products, product origin information, authenticity, transportation information and updates, and much, much more.
Meaning that commodities like medicine, food, vehicles, and other goods can be tracked and recorded throughout the lifetime of the product. Which can mean good things for consumers and suppliers alike. From creating better quality control standards or service improvements, to being better able to negotiate fair pricing systems or operational costs.
The VeChain platform has two tokens, VET and VTHO. VET is a token and cryptocurrency, used to transact value to partners across the network, where VTHO is used to power smart contracts and transactions — working on the same principle of Gas in the Ethereum platform. Where it differs from Gas is that should whoever initiated the transaction not budget enough VTHO for any given transaction, they can then mine for more through a proof-of-work system. In Ethereum’s platform, if someone doesn’t budget enough Gas for any given project, the transaction is left uncompleted and is removed.
VeChain uses a Proof-of-Authority algorithm, in which only approved accounts and known entities can validate transactions. These types of algorithms are common amongst somewhat centralized authorities, using threat of reputation to incentivize transaction integrity. 101 predetermined nodes are used to validate transactions and each is awarded VTHO according to the age and balance of the account.
Developmentally, VeChain is an incredibly reliable platform. They regularly meet deadlines, have a litany of impressive international backers, and a strong and deeply involved community. The platform is also beginning to tie itself to governmental programs, medicine manufacturers, and other high profile business structures. The more high profile businesses that align themselves with VeChain Thor technology, the higher the worth of VET tokens stands to become.
In order to use any of VeChains dApps, one would have to associate themselves with the VeChain platform, and require VET if not VTHO, promoting the increasing value and continued adoration of the coin and the platform itself. As more and more widespread and necessary dApps are created, one can assume that more entities will require access to the platform and its tokens, which may drive up and help stabilize prices.