The next cryptocurrency we take under the microscope is VeChain (VET). We will take a look at what sets it apart from other projects in the blockchain and makes it so popular.
A brief history and the technical aspects of VeChain (VET)
VeChain (VET) is a relatively young project. Initially, the cryptocurrency operated as an ERC20 token based on the Ethereum blockchain. It was labeled with the acronym VEN. However, from August 18-31, 2017, an ICO was conducted to raise funds to switch to its own ecosystem. The operation was successful, resulting in the debut of VeChain, a platform based on its own source code, on June 31, 2018. At that time, VEN tokens were converted into VET tokens.
VeChain is a project centered around the creation of the so-called supply chain (blockchain). It provides opportunities for companies that cannot or do not want to build their own chain, but want to use blockchain technology.
It targets large companies looking to improve their own quality and delivery processes. The project’s portfolio includes cooperation with such brands as Renault, BMW, DB Schenker, Microsoft, or even PwC. The applied technology allows to track production and delivery processes. This is done, among others, thanks to NFC chips. However the tracking itself is done by radio, through RFID.
The VeChain team is also cooperating with the Chinese government as part of building the so-called smart city. However, the blockchain community has mixed feelings about this project, as it indicates excessive centralization of VET.
The operation of the network is based on two coins. The basic and most well-known one is, of course, VET, used to build transaction nodes. In turn, the second token is VeThor Token (VHTO). It is used for smart contracts, for example. The key to the operation of VeChain is that it is based on the Proof of Authority algorithm. In this case, more than 100 supervising nodes are involved in the operation of the network, and each of them holds more than 25 million VET tokens.
The total possible supply of VET is more than 86 billion coins. As of the writing of this article, 74% of all coins are in circulation. The remainder is reserved for the project team that ensures the stability of the network.
VeChain price development (VET)
After VeChain changed from VEN to VET, it reached its All Time High very quickly. This occurred on July 26, 2018, at a price level of just under $0.03. After that date, like the vast majority of the market, it fell into a prolonged downtrend and consolidation, scoring a bottom near $0.0015. It did not break through the 2018 peak until January 5, 2021. This means that VET has established a new ATH a bit earlier than most of the leading coins on the market. At the time of writing this article, we are already seeing values above $0.06, which indicates a strong upward momentum. The further development of the VET price seems to be very interesting, which makes it worth following.
Opportunities of VeChain (VET)
VeChain (VET), is a project that technically seems to be a contradiction in terms. It takes care of decentralization while somehow centralizing itself. However, it has a gigantic impact on the development of large enterprises, through a kind of blockchain outsourcing. Enterprises that use VeChain’s services are its best showcase and, in a way, a reference indicating quality. It is worth mentioning here that if the project’s services are used by global brands, sooner or later each of us will come into contact with VeChain and experience its quality on our own skin.