Bitcoin is Booming - My favorite cryptocurrency: VeChain (VET)

^{VeChain official site: https://www.vechain.org}

Today, I am going to share details about VeChain. I am holding a very small quantity of VET for the past 1+ month and my plan to hold this for the long term around 5+ years or maybe more. I work on the supply chain domain and because of that while researching for such blockchain, I came across VeChain.

What is VeChain?

VeChain ecosystem is built on top of the VeChain Thor blockchain. It is a dual token system made of,

• VeChain (VET) and
• VeThor Power (VTHO)

VeChain is based on the "Proof of Stake" economy which rewards VeChain holders with VeThor token. This means if you are holding VET token then you are entitled to get VeThor token based on the amount of VET token you hold.

What problem VeChain is trying to solve?

Online e-commerce giants are the popular outlet for the sale of counterfeit electronics online. Just over 25 - 30 percent of users have indicated they had purchased the fake electronics goods through the online platforms. We also face this issue while purchasing from offline/retail stores. In most cases, we don't know how to validate the product/parts/accessories which we are purchasing is original/genuine. Few websites provide an option to register the product using a serial number or something to their website but it's only for few limited products.

Few common fake products which we might have already seen/bought are,

• Smartwatch
• Speakers/headphones
• Smartphone and its accessories
• Tablet
• Laptop
• Camera
• Sports activity device
• Medical device/Medicines
• Edible Oil
• Dry fruits
• Health & Wellness products.
• Motor vehicle parts
• Liquor/Wine etc.

So these things could be solved using blockchain and platforms like VeChain is already working on it with big companies to solve their supply chain issues, to give an easy way to customers to validate the authenticity of the product. It will help companies to maintain their brand value. Fakes greatly endanger the brand value of any company.

History of VeChain

• VeChain was created in 2015, It is one of the older blockchain projects.
• It was initially running as ERC 20 token on the Ethereum network as Ven.
• In late 2017, VeChain raised $20 million dollars in ETH via ICO to fund the VeChain Thor mainnet launch. It was one of the hottest ICO of that time.
• In June 2018, VeChain token was migrated from the Ethereum network to the VeChain Thor mainnet.

Lets understand what is VeChain Thor

Initially, the plan was to link the products to the consumer using blockchain technology to solve the supply chain issue. The idea is to boost the efficiency, traceability, and transparency of supply chains at the same time by reducing costs and giving more control in the hands of consumers/individual users.

^{VeChain: VET & VTHO Economic Model}

VeChain (VET) is the store of value and it is the currency in the VeChain ecosystem, When we are talking about VeThor (VTHO), It is energy or power that is used to make transactions on the VeChain network.

As it works on Proof of Stake economy, if you are holding VET, It will generate VTHO at the rate of 0.000432 VTHO per day per VET. Consensus on the VeChain Thor network is achieved through Masternodes.

^{VeChain: Proof Of Authority}

Masternodes are maintained by various partners including academic research partners, enterprise users, blockchain developers, business and technical partners, and community contributors. There are different types of Masternodes operators that is authority nodes and economics nodes. Both of these nodes help maintain the system development and security of VeChain Thor network.

Another aspect of VeChain governance is the proposal system. It is similar to other Masternodes systems such as DASH where community members create proposals for the network. This helps with continuous innovation. VeChain uses a built-in smart contract for on-chain governance which helps in propose, approve, and execute any proposal made by Steering Committee which is elected by the community.

VeChain is designed to scale up to 10,000 transactions per second. It can be achieved because of the distributed nature of 101 authority nodes on the network helping validating the transactions.

Why I Chose VeChain

The best use case of VeChain is, it could help in a supply chain tracking starting from food, phone, computer or any electronic product, or anything related to entertainment, everything goes through multiple steps from creating till reaching to consumers' hands. The businesses/enterprise who are responsible for making sure you get the fresh produce, original/genuine products will greatly benefit from using this smart contract-based supply chain tracking system.

There are many large companies that are already using VeChain in their operations. Few big names are, BMW, Renault, PwC, Haier, Walmart China, H&M, People’s Insurance Company of China, LVMH, DB Schenker(Transport and Logistics), DHL, etc.

^{VeChain Partnerships}

Use Cases

• Provenance for food & beverage

^{Provenance for food & beverage}

The above process shows how the traceability of food items could be achieved using VeChain blockchain services. The end customer could easily track the origin/source of the items, seller details, packaging date, storage facility details, etc. by scanning associated barcodes with the product. Currently, the same information is shared by centralized e-commerce platforms (It is created and managed by the same platform owner or the sellers of the product) but we have no option to validate these details.

• Anti-counterfeiting and digitization for high value products

As I have explained above the problem with fake products so is one of the major use cases and solutions provided by VeChain.

^{Anti-counterfeiting and digitization for high value products}

^{VeChain based DApps: https://www.vechainworld.io}

VeChain has a growing DApps related to,

1. Finance
2. Utilities
3. Entertainment
4. Social Networking
5. Business
6. Information

VeChain current performance and it's future

^{Source: https://coinmarketcap.com/currencies/vechain}

The current ranking is #26, with a market cap of $1,027,234,440 USD as per the published record by CoinMarketCap. It has a circulating supply of 64,315,576,989 VET coins. Currently, it is traded on Binance, Huobi Global, Binance.KR.

^{VET/USDT 1 day chart, Source: https://www.binance.com}

^{VET/USDT 1 week chart, Source: https://www.binance.com}

By looking at the use cases and problems this blockchain platform is trying to solve, I am really positive about its future. We couldn't predict the price at this moment as this technology is still in its early stages of validation and multiple companies to doing proof of concept or running, trying, and testing operations on small scale but slowly growing.

Plan to hold, buy more, or sell?

I am following a systematic investment plan (SIP) so I would keep buying at regular intervals that is every month or on dips or 3 months. As I am a long-term investor so my plan is to buy and hold for 3-5 years but at the same time I need to keep a watch on developments in this supply chain tracking based blockchain solutions and how VeChain would keep/maintains itself unique compare to other similar blockchains in future.

By looking at above mentioned use cases, It's clearly visible that as more businesses adopt using VeChain to improve their supply chain tracking, product tracking, the demand for VET will increase. It will be also interesting to see the competition, particularly in these operations, supply chain management, and tracking based blockchain solutions in the future.

Thank you!

---

References:

• https://www.vechain.org
• https://vechaininsider.com/partnerships

Cc:-
@steemitblog
@steemcurator01
@steemcurator02

---

DISCLAIMER
^{It is not financial advice. Please consult your financial advisor before making any financial decision.}

---