VeChain is a blockchain platform designed for business processes. It enhances supply chain management and streamlines those processes for complex supply chains through the use of distributed ledger technology. It is one of the oldest companies in blockchain technology which has a project that gained a lot of attention from investors recently. So are you eager to know more about VeChain and the technology behind it? Read on this article till the end.
What is VeChain?
VeChain is a Singapore-based decentralized smart contract platform established in 2015. Generally, it is a cryptocurrency and smart contracts platform focused on supply chain management. Manufacturers can add sensors such as RFID tags to their products that can then record data onto the VeChain blockchain. Actually, the platform has two tokens, VeChain token(VET) and VeChain Thor Energy(VTHO).
The VET is used to transfer value across VeChain’s network and the VTHO is used as energy and gas to power transactions. The main aim of this platform is to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers in business processes. So this platform can be used to track quality, authenticity, storage temperature, transportation medium, etc.
Technology behind VeChain
To attain the goal of this platform, VeChain uses the technology of smart chips or Radio Frequency Identification(RFID) tags and sensors which broadcast key information onto the blockchain network that can be accessed in real-time by authorized stakeholders. It connects blockchain technology to the real world by providing a comprehensive governance structure, a robust economic model, and IoT integration. The features of the VeChain are:
- The main part of the platform is VeChain Mainnet
- VET blockchain is supported by smart contract support engine
- Multi-Party Payment (MPP) is the protocol supporting easier onboarding of parties in charge of paying for transactions initiated by other parties. It is part of the platform’s Meta-Transaction set of features.
- The atomic transactions, batch payments, and multiple calls to various contract functions into a single transaction are supported by the Multi-task Transaction (MTT) system.
- VeChain’s native ICO platform is primarily intended for startups which can organize proper cryptocurrency offers with the help of the VET blockchain.
The consensus protocol associated with the VeChain Thor blockchain is Proof of Authority. According to Proof of Authority protocol, votes are distributed based on VET holdings and disclosure. VET holders without KYC account and with 1 million tokens in their accounts are assigned 20% of all votes while VET holders with KYC account and the same amount in their accounts are responsible for 30%. Among the total 86.7 billion VET tokens, only around 60 billion was circulating now. We can hope that VeChain will be a future technology for executing smart contracts. If you can successfully execute, then VeChain is a good investment too.