Rarely do we encounter a cryptocurrency that has a real-world use case, VeChain VET crypto is one such blockchain with real-world application. Vechain puts the blockchain technology to test in the area of supply chain management which includes live tracking of goods right from manufacturing to the final delivery.
Vechain quickly made strategic partnerships with renowned clients across the globe that encouraged investors to park their money into VET coin. Before making your investment decision, I highly recommend going through the complete article.
Deep dive into Vechain and decide for yourself, whether it has what it takes to reach the moon or not? Having said that, let’s explore Vechain VET Crypto –
Watch the complete video on VeChain VET Crypto –
What is VeChain VET Crypto?
Vechain is a blockchain technology for the real world. It was created to streamline supply chain management processes from storage to transport. Vechain aims to build a transparent and trustworthy ecosystem in which goods can be easily traceable in real-time while preventing fraud and maintaining high-quality standards.
VeChain is the brainchild of Sunny Lu, who founded the company in 2015. Sunny also served as CIO of luxury brand Louis Vuitton China. With over 20 years of experience in the luxury market, he jumped onto the blockchain wagon to address the supply chain issues by creating Vechain.
Vechain Mainnet was launched in June 30, 2018
What is VET coin?
VET is the utility token of Vechain. VET token plays a pivotal role in the governance of the blockchain by allowing voting on the proposed protocols. Apart from it, VET is also used to carry value in the smart contracts which means it is used as part of the transactions taking place on the Dapps created on the blockchain.
Vechain initially issued VEN tokens which was an ERC20 token built on the Ethereum blockchain. It was in 2018, Vechain switched to its own blockchain and rebranded VEN as VET (VechainThor) token. VEN token was swapped with VET token in the ratio of 1:100.
Companies using Vechain will need VET tokens to generate VeThor (VTHO) which is yet another token that powers the blockchain and pays for the transaction fee on the network.
The total supply of VET coin is capped at 86.7 billion
VET vs VTHO Crypto:
There’s a lot of confusion among the investors when it comes to investing in Vechain since blockchain holds two different types of tokens VET and VTHO. It is important to highlight the difference between them in order to make a better and informed investment decision.
|Primary Use Case
|Governance, Value transfer
|Pay for Gas Fee
|Store of Value
|Possible Price Appreciation
How does VeChain work?
Vechain uses Proof of Authority consensus mechanism to verify and add blocks to the network. It has a total of 101 trusted validators that are handpicked by the system to participate in verifying and adding blocks to the network.
A validator must hold a minimum of 1 million VET tokens to qualify and take part in the validation process. Validators are required to reveal their identity before participating in the voting process. Any random node holding an equal amount of VET tokens will not be allowed to take part in the validation process unless it is verified by the Vechain network.
There’s also an economic validator node that checks the power consumption and gas fee on the network. Hence, helps in reducing the network’s energy consumption and abrupt gas fee.
VeChain is capable of processing up to 10,000 transactions per second
VeChain Real-world Use Case:
Vechain has a lot to offer when it comes to supply chain management. Highlighting one of the examples of its real-world application. Vechain uses RFID tags and sensors to transmit real-time data to the users about the condition of their shipment while it is on the way.
Suppose you’re running a company and there’s a product in high demand (Vanilla ice cream). You decided to pump up the supply by calling for the goods (ice creams) stored in the warehouse directly to the store. Let’s say, batches of goods have been sent from three different warehouses to the retail store with the same packaging and in similar storage conditions. After about a week from replenishment, complaints have been raised by a group of customers who purchased your ice cream, reporting an inferior quality and no taste.
It’s very difficult to check the origin of the problem using traditional methods. If you have used Vechain, this scenario will have played differently. Being an owner, you will understand which lot holds the batch of inferior quality ice creams since Vechain will be able to monitor the conditions in which the goods have been kept and reports it directly to you.
The defect occurred when goods from warehouse number 2 were on the way and the carrier turned off the freezing by mistake that led to the melting of the ice creams and hence loss in quality. Vechain will report this drop in the temperature condition beforehand and send live data to your connected device. This is how one can make an efficient supply chain by using blockchain technology.
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VeChain VET Crypto ICO:
Vechain announced and conducted its ICO back in August 2017. It raised a total of 200,000 ETH (approx.) by selling each token at $0.0008. These tokens were named VEN which were ERC20 tokens created by Vechain before switching to its own blockchain.
Next year in 2018, Vechain switched to its own blockchain and rebranded VEN as VET token. The original tokens were swapped in the ratio of 1:100 resulting in the initial drop in price before rising back up in the bull run of 2021.
VeChain VET Crypto Benefits:
Real World Usage:
The crypto market is full of projects forecasting high potential and adoption rate. However, only a handful are capable of sticking to their on-paper promises. On the other hand, Vechain doesn’t need to work around these forecasts. It has real-world usage and the company is already collaborating and deploying its blockchain with known players in the market. This makes it a reliable project.
First Mover Advantage:
Vechain may not be the first blockchain based project but it is the first to address the supply chain industry using blockchain technology. Vechain doesn’t have close competition with any other crypto projects that are focused on supply chain management. This gives it a big playground field to expand its reach.
Vechain runs on a Blockchain-as-a-Service model. In order to survive, it has to acquire healthy corporate accounts. Fortunately, the blockchain is able to add some big names to its list of clientele and its on way to expand its reach by offering strategic solutions to reduce fraud and increase efficiency. Sharing the list of important partners associated with Vechain –
Walmart uses Vechain to monitor supply chain of its food items.
Louis Vuitton appplies the technology to track leather goods.
BMW uses Vechain to address odometer fraud.
PwC uses Vechain for product verification and traceability for it’s clients.
Store of Value:
Vechain VET crypto is a digital asset and a store of value. Investors who invested in the ICO have already reaped high profits by investing early in the token. The overall potential and the use case of VET crypto is quite impressive. Moreover, it can further rise with the increase in positive sentiments surrounding the crypto market.
VeChain VET Crypto Drawbacks:
Vechain may be the first blockchain to address supply chain management but it is very late to the party being dominated and hosted by key players like IBM and SAP.
IBM has already partnered with the shipping giant Maersk to develop and deploy its own blockchain platform. Moreover, it is working with top consumer goods companies i.e Unilever and Walmart to onboard blockchain technology. This is a big threat to Vechain ecosystem from a traditional player with deep roots in the corporate world.
BMW is on its way to develop own blockchain to attain supply chain efficiency
Lack of Global Acceptance:
It was forecasted that the blockchain adoption rate will rise post the pandemic. However, that was not the case with Vechain. Ironically, the demand has fizzled out since more companies are not in a condition to try out new technology. Companies are restricting themselves to old ways since they have exhausted resources that incubate new technologies within the system.
China Ban Against Crypto:
VeChain is based in China. After waging war against cryptocurrency, China poses a threat to the projects that are being developed within the country, Vechain is no different. Blockchain users have to hold VET tokens to access the blockchain resources, a nationwide ban on cryptocurrency has put the project in turmoil. This event has a high chance of slowing down the adoption rate of this project.
VeChain VET Crypto Price:
Please check the latest VeChain VET Crypto, shared below –
VeChain VET Crypto Price Prediction:
Clearly, Vechain is one of the trustworthy crypto projects in the crypto industry. It has one single aim and that is to increase the efficiency of the supply chain system by making it more transparent and predictable using tools provided by the network.
An improvement in supply chain operations with fraud detection ability brings more profit to the table, hence an increase in demand. Vechain has already established itself as the most favourable player in this space. However, legacy supply chain companies like IBM pose threat to its existence.
Big tech giants have the resources to mimic, replicate or create a new blockchain and offer it to the client at a much lower cost compared to Vechain. Any such practice is enough to eliminate Vechain from becoming a top contender in the race of blockchain adoption. This is something to keep your eyes on.
Having said that, the project is focused and it’s already on the way to expand its client base. Any news or update on the big client onboarding will further boost the price action. I won’t be surprised if it hits the range of $0.70 -$0.90 in the next bull run. Yes, you can take $1 into consideration but I do think it’s far fetched given the volatility and historic price action.
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Where to Buy VeChain VET Crypto?
VET is available to trade on leading crypto exchanges like Binance. You can buy, sell or hold VET and VTHO on the exchange.
Indian users can register on WazirX exchange (Binance subsidiary) to trade VET and other digital assets on the platform by depositing INR using native banking methods like UPI or Net Banking.
Is VeChain VET Crypto worth investing in?
By now you may have got a fair understanding of VET token. Vechain is a blockchain based service to manage supply chain operations. It is also capable of supporting smart contract computations and dapps creation.
Recently, Vechain was exploring the NFT space to add more value to the use case (Unlike coins like Shiba Inu SHIB which is waiting to explore its actual use case). Since the project has successfully established its footprints in the crypto space, it will be among the top altcoins that can gather much attention in the upcoming bull run.
Having said that, I am neutral on Vechain. Its growth is directly proportional to the number of projects it can onboard overtime. Of course, China is one area of concern for the project since its core operation is located on the Chinese mainland.
Overall, the price action looks positive and the project is promising.
This completes my review of VeChain VET crypto with price prediction. I hope you enjoyed reading it. In the next post, I will talk about Fantom FTM Coin and Harmony ONE Coin. Please share the post and spread what you believe in. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.