VeChain (or VeChainThor) is a blockchain focused on the ‘real-world’ use-cases for decentralized systems. Launched and curated by VeChain Foundation, it pioneered a variety of applied solutions in supply chain, identity verification, and so on. Emerging technologies - AR, VR, AI, IoT, 5G - represent another focus area for VeChain.
Since its inception in 2015, VeChain empowers retail users, governmental bodies (China, The Republic of San Marino, Cyprus etc.), and top-notch corporations (AWS, Deloitte) with decentralized data processing instruments.
What is VeChainThor’s ‘Proof-of-Authority’ consensus?
VeChain is the most popular blockchain based on the top of hybrid ‘Proof-of-Authority’ consensus. It merges the core benefits of centralized and decentralized systems. There are no anonymous validators in VeChainThor blockchain: transactions are verified by known (identified) Authority Masternodes that, in turn, are authorized by Steering Committee, a top executive body of VeChain Foundation.
VeChain Foundation implements all necessary ‘know-your-customer’ checks to prevent the malicious persons from running VeChain Authority Masternodes.
How does VeChain validate transactions?
VeChain introduced a number of eccentric technology solutions used in transaction validation. Firstly, it is a Controllable Transaction Lifecycle: users can customize the time for the transaction to be either included into the block or expired. Fee Delegation instrument empowers the dynamic fee models.
Multi-task transaction (MTT) mechanism works like Ethereum’s roll-ups: it batches multiple transactions into the single one to be easily included to blockchain in a resource-efficient manner. Transaction dependency can establish the dependencies between the transactions: the A transaction is included into the corresponding block once B transaction is mined, and so on.
What are VET and VTHO tokens?
VeChain implemented a unique bi-token design that includes VeChain Token (VET) and VeThor Token (VTHO). VET serves as the internal token of the VeChain ecosystem, the core element of its tokenomics and its ‘smart money’. Instead, VTHO serves as the payment method for using VeChainThor mechanisms for value transfer. As such, VTHO is used to reward PoA masternodes operators.
In terms of the project’s economics, VTHO is generated from holding VET with a constant speed. Both VET and VTHO tokens are built on VeChain: VET is ‘native’ tokens (like Ether for Ethereum) while VTHO is VIP-token (like ERC-20 and ERC-721 on Ethereum).
VET supply is limited to 86,712,634,466 coins. 70% of VTHO are destroyed while 30% are rewarded to masternode operators.
Which use-cases does VeChain address?
Firstly, VeChain Foundation released its own application stack for the developers: it includes Connex, an interface that facilitates the interaction between VeChain, its decentralized applications, and its users. Sync2 is a native VeChain’s wallet interoperable with mainstream browsers.
VeChain is utilized in many industry-grade use-cases: from COVID-19 passports in China to the supply chains in foodtech in APAC and eNFTs.