What is VeChain (VET) in simple words: history, course and how to buy

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2019-08-23 00:00:00:

VeChain (VET) is a digital currency (token) of its own developers platform, which acts as a huge platform for converting ordinary information into digital, based on the blockchain. The platform is used for product labeling, in politics, production and logistics. The essence of the project is to obtain reliable data about the product from the beginning of its production until it is received by the end consumer. VeChain Thor is a separate product that connects 2 systems: internet and blockchain.

What is VeChain (VET)

It is very difficult for an ordinary person to immediately understand what VeChain is, so you need to familiarize yourself with the features of the product. The platform itself is made to work with various market groups, including B2B and B2C.

Manufacturers are given the opportunity to follow the sources of sale in real time, due to the marking of all goods using a digital code, it is unique. The consumer can verify the authenticity and quality, and also receive detailed information about the product by scanning the code through a smartphone and a special application.

The platform is based on the solution of all problems that are caused by counterfeits on the market. For example, there is a client who wants to buy an expensive Rolex watch, but he cannot 100% believe the seller that the product is genuine. If a manufacturer uses a similar platform for their own products, then any consumer can scan the code through their own phone to get all the data about the product: year of manufacture, materials, country, etc.

The platform itself should help different companies work quickly with each other, without deception and intermediaries. As a result, the creators believe that the VeChain cryptocurrency will allow the following:

Use technology to digitize any real goods, and then store data about them on the blockchain network. For this, QR codes, RFID tags and NFC chips are used. For any product, there will be a unique code entered in the register, and a special identifier is applied to the product. After reading it, a person receives accurate data on the movement of the product. When it comes to food, the client can find out who, when and where produced the food. Similar measures are used for auto, branded goods.
Enter and store information about business documents, corporate materials. This leads to the fact that all data cannot be deleted or adjusted; all business partners will be able to access such a register.
Launching smart contracts, allowing firms to independently create contracts without the help of lawyers.

A certain hierarchy is used on the VeChain platform, the creators are confident that the ecosystem will be convenient and comfortable for any type of client:

Companies are any field of business that creates and offers services or goods.
Services - Build applications that can connect customers and solve specific problems.
Developers of smart contracts.
Nodes are people with a certain degree of responsibility for the correct functioning of the platform and operations on it.
VeChain members are active participants in the development of the idea.
Users are any people who work with each other using the platform.

VeChain is generated using SHA-256 hashing technology. The original platform includes the blockchain as a base, the VeChain ( VET ) cryptocurrency , which is considered a unit of value for the entire structure and gives access to creating, changing data and other actions. The token itself is made according to the ERC20 standard , but this is the old version that was before. Today VeChain Tror is used, built on top of Ethereum. With its help, it is possible to make applications for a different field of activity with complete decentralization.

History of VeChain (VET)

The history of VeChain begins in 2015. At that time, a group of specialists gathered, led by Sunny Liu, after that, in early 2016, the v1.0 platform was developed, in the summer it was completed. After 3 months, there was an update to version 1.5, which includes an API gateway, smart contracts , and a program for smartphones running iOS. Added dashboard, new generation VeChain smart chips.

Version 2.0 was released in November of the same year. The following changes happened in 2017, new areas of use for business were created, the possibility of audit. It was this year that became very important for developers, because all specialists were preparing to hold an ICO and the sale of the token started in August. The cost of one coin was 8 cents and the desired hard cap was 200,000 ETH.

The creators of the cryptocurrency issued a total of 86 712 634 466 VEN, but they were distributed as follows:

41% - received by the project investors during the ICO, and all the funds received are used to improve the project;
23% are owned by various corporations that will use the VeChain platform in the future;
12% - assets are in the fund, and they are frozen until 2020;
10% - used for marketing;
9% - Cryptocurrency sold to influential investors.
5% is held by team members.

Since 2018, VeChain creators have released version 3.0, added a new token with an exchange rate of 1: 1 to the already working cryptocurrency using ERC20 technology. At the end of the year, there was a significant change for the project - the move to a personal blockchain. After that, the network received a new name VeChain Thor, and the token itself began to be called VET. From that moment on, a new digital coin VeChain really appeared. The VET token itself is a proprietary development that is available for people to pay for goods and services, as well as receive coins if they act as suppliers.

At the moment VeChain operates in 7 offices located in the USA, China, Japan and other countries of the world. There are many professionals in the team, including over 100 employees. Of these, 50 people are engaged in professional development of blockchain software. VeChain is rapidly developing, collaborating with the best universities in the world in the field of research and development of modern technologies. In addition, the company is leading the world in blockchain patents.

Distinctive features of VeChain

The entire VeChain system includes 3 components: blockchain, token and wallet. Even before 2018, the coin was powered by Ethereum technology , so the functionality was severely limited. After the development of our own blockchain, new functions appeared. The cryptocurrency has received a number of distinctive features:

VeChain Identity is a special system that makes it possible to scan, write and track unique identifiers in the blockchain project chain. After registration, the manufacturer can mark the products with a unique number that looks like a SHA256 hash record. Information completely enters the system, is recorded in it through codes for scanning. A consumer and another person through the phone and the program can receive complete data on the date of production of the goods, movements, shelf life, etc.
Build-in Gouvernance is a built-in governor that is needed to improve network security. The tool is also needed to achieve balance in the middle of the PoA network.
Proof-of-Authority (PoA) is a consensus algorithm that makes it possible to verify operations for a specific category of nodes. On the network, the platform is used not to show the real availability of cryptocurrency on wallets, like many other digital currencies, but to confirm the product. Most often, node operators are members of the company who use VeChain to conduct business.
The project was the first in which a digital coin was able to offer a contingency remediation (CDRP) option. This made it possible to increase the degree of security of the entire network, to increase the reliability of any operations.
Implementation of sidechains and network expansion. According to the creators, the speed can reach up to 10,000 operations in 1 second, which is considered a very high value in the world of cryptocurrencies. This is available through the use of PoA, and the increase is greater than that of assets operating on PoW . But the main mechanism for scaling is sidechains.

In addition, the VeChain project differs from other cryptocurrencies by the presence of 2 coins on the network at once: VET and THOR. In the first case, the asset is used to perform buy or sell operations, as well as to participate in transactions in the form of a validator. The second coin is used to pay commissions during the formation of smart contracts or programs. Today VET can be bought on the exchange for further work, but THOR is only allowed to earn. There are several options available for this:

Store a certain amount of VET coins.
Confirm operations while acting as a validator.

How VeChain works

The main areas of use of the platform can be considered:

automotive production;
agricultural products - the IoT method was used for work, together with VeChain it becomes possible to collect and provide information to improve the quality of sowing, their quantity;
alcohol production;
trade - due to the platform, you can control the full cycle of goods from the beginning of production to entering the storefront, as well as improve the level of control.
luxury goods - with the help of blockchain and NFC chips, customers will be able to control the entire cycle of goods from the start of production to receipt. To do this, it is enough to scan through the application on your smartphone. Due to the method, the probability of acquiring fakes is almost completely excluded;
logistics - due to the blockchain, it is possible to effectively exchange data of all people who take part in the transportation process.

The principle of operation for each direction is practically the same. The platform allows you to track the production, movement of goods, as well as identify them and store data in the blockchain. With the help of the system, you can find out about the intersection of trade in counterfeits, poor quality products, companies increasingly want to use work via the Internet.

A separate ID is assigned for each product or service, the identifier is stored in the blockchain, and the products are marked with a chip with precise information.

Initially, the VEN cryptocurrency was developed for the VeChain system, but during the development of the project and the transition to a new blockchain, the need to develop a new token - VET automatically appeared. Therefore, you can forget about the first coin, this type of cryptocurrency no longer exists, it is not on a single cryptocurrency exchange. In addition, there is an internal coin applicable for smart contracts and applications - thor power (thor). VET owners can exchange for thor at a rate of 0.00042 thor = 1 vet.

Considering only the VET token, we can say that it is he who is the main one for the platform and the entire VeChain network, having 3 main functions:

It is used as a means for instant payments with a high level of reliability.
Provides customers with a number of advantages in using the functionality of the platform.
Opens access to a digital platform, which helps corporate owners to carry out any entrepreneurial tasks and conduct business.

The project was created simultaneously for many markets, so the company created several versions for work:

standard;
for developers;
affiliate.

The standard model provides the user with a no-code or low-code blockchain solution. The product is made specifically for the search for counterfeit goods and supply chain management. The main features of this version:

shopping module using codes and chips;
a model for managing goods, logistics, personnel or entire companies;
special programs for identifying QR codes;
business management module;
VeChain Pro app;
product display H5.

The developer version has the ability to use different APIs, SDK tools, as well as detailed documentation, which makes it easy and quick to create your own software based on the VeChain blockchain. The main features of the version:

API user manual;
a shopping module with the assignment of an ID to each product through the introduction of chips and codes;
SDK for ID scanning and auto security check;
guides for connecting programs to smartphones under different operating systems;
code generation applications;
hardware product for VID management.

The partner version gives you the ability to form a proprietary deployment that resides on the servers of business partners. A personalized upgrade service is provided. Advantageous features included in the package:

independent deployment guide;
module of control and management of the company, project;
shopping module using chips, codes;
independent management of goods;
a system for managing logistics, companies and access;
Software for generating codes, printing them;
VeChain Work App.

Since the Vechain Thor system operates by proving its own PoA authority, it is impossible to mine a coin using mining. Only authorized persons will be able to receive VET, the number of which is 101 people - validators. The creators say that such a mechanism was used to create a balance between centralized and decentralized technologies. It is difficult to assess the effectiveness of the approach; it is possible to find out only in the future.

VeChain advantages and disadvantages

VeChain (VЕT) has unique capabilities and features that significantly distinguish the coin from other types of cryptocurrencies. Among the main advantages are:

An excellent project idea that can be of great benefit to the public, businessmen and consumers. With the help of the system, one of the main problems can be solved - the identification of counterfeit products on the market using an ordinary mobile device with the installed program.
The use of modern technologies integrated by the creators into the project - blockchain and Internet of Things. This makes it possible to identify goods reliably, quickly and easily.
Using Roadmap. The work of the whole team is carried out according to a strictly established plan and on time.
High security of the token, which is the first that was able to launch its own blockchain.
The ability to increase the VeChain network by using separate blockchains tied to the main one.
The platform is used by many decentralized programs.
A professional and powerful team with offices around the world. Specialists have been dealing with blockchain technologies for many years, so they know a lot of subtleties.
Proven expertise in many areas of activity. The project works with a different type of business.
The simplicity of the platform for deployment, all chains are reliable and secure, include ready-made solutions, there are programs and other hardware. This allows you to quickly implement new developments in enterprises.
The ecosystem accommodates many partners who help to accept and implement novelties in the blockchain , increasing the capabilities of each other.

Despite the powerful advantages of the project, the coin has a number of significant disadvantages. Among them:

Network management is possible only according to certain rules that indicate centralization.
Long process of implementation of all updates and improvements.
Supply chain management is an area where the project constantly faces high competition from powerful cryptocurrencies.

Vechain is trying to actively increase the level of adoption of cryptocurrencies in real life, as evidenced by the improvement of the coin, the transition to its own blockchain. The team of creators plans to spend a few more years that the asset has been applied everywhere. The faster this path is, the more partners will be able to join.

Does VeChain mining exist?

At the moment, it is impossible to engage in the extraction (mining) of cryptocurrency. In general, the project works on such an algorithm that, in theory, it is possible to receive coins if you install a certain program on a PC, make certain software settings of the wallet for forging. Obtaining coins is possible simply by storing them in your own account, buying them on exchanges.

You can use various cryptocurrency exchanges to purchase, the largest being Binance. Among other options, there are:

HitBTC, Huobi, Gate.io, Liqui - purchases are made through BTC , ETH and USDT.
LiveCoin - the coin can be purchased using fiat, namely US dollars.

How do I buy or sell VeChain?

Considering the coin from the very beginning of its existence, it is worth noting that the maximum value of VEN (token based on Ethereum) was $ 9.44, and the minimum price was 22 cents, which was immediately after the ICO. Cryptocurrency growth has been very good due to the introduction of unique technologies, as well as the fulfillment of roadmap plans. After the renewal of the token and the release of VET, the coin managed to survive both sharp ups and downs. The maximum value of the cryptocurrency was recorded in September 2018. Then the token was 2 cents, and the minimum price was in August of the same year - $ 0.007.

VeChain (VET) coin is considered to be very popular and promising in the cryptocurrency market, using useful technology. That is why it is traded on trusted crypto exchanges. You can buy a cryptocurrency (asset) for Bitcoin, Ethereum, fiat money and other altcoins. For storage, you can use a special wallet developed for a coin by the creators of the project. Browser options and cold wallets are also available, especially if there are a large number of assets.

VeChain (VET) exchange, buying or selling is not an easy task for the user. There are not many opportunities, but the Binance exchange is perfect for cryptocurrency owners. It has a clear menu, a Russian interface, and 34.66% of the VET coin is traded at a bargain price. To carry out any financial transactions, you need to register, which does not take much time:

You need to go to the site and come up with a complex password.
Provide email address.

The following rules are used for trading:

After registration, go to the main menu at the top and click on "Active".
Open the line with the balance, go to the "Deposits" section.
A menu will open with various cryptocurrency assets, opposite which there is an amount. Next will be the buttons "Deposit", "Withdraw" and "Trade".
VeChain is traded on the exchange in tandem with Bitcoin and Ethereum, so you need to replenish your account with one of the presented coins. To do this, find BTC or ETH in the tab with the balance, click on the deposit icon.
The next window will show the address of the wallet to which you want to transfer coins.
Using the "Shopping center" button, you can view the charts, then select VET, and in the column - BTC. This will help to automatically make a chart of coins, below which there will be buy and sell.
In our version, you need to use a VET purchase order. To do this, indicate the cost for 1 coin, the amount that is planned to be purchased. By setting the standard value, the exchange will give out the average price of the asset, if you write the numbers yourself, you will need to wait until another trader accepts the application.
The purchase is made and you can start working with the coin.

It is not recommended to keep the asset on the exchange, as there are risks of its theft. The main drawback of Binance is the inability to work with real funds, so you only need to enter cryptocurrency. In addition, you can use other options for buying or selling coins. One of the quality exchanges is Kucoin. The platform is relatively young, characterized by low commissions, has a convenient menu and navigation.

The second largest VET sales volume is the Chinese platform Huobi, established in 2013. Most of the traders on it are from Asia, the exchange itself is almost unknown in the CIS, Russia and Europe. It is characterized by high liquidity, no commissions, but it is not very convenient to work on it.

VeChain to ruble rate

According to CoinMarketCap, the Vechain rate against the ruble is within 0.271 rubles. for 1 coin. At the same time, the trading turnover for the last 24 hours was RUB 1,597,278,114. The asset price dropped 0.76% over the last day.

VeChain to dollar rate

According to CoinMarketCap, as of 09/01/19, the Vechain rate to the dollar is $ 0.00405115, and the turnover per day was $ 23941997. The asset value in 24 hours decreased by 0.7%. To date, 55.5 billion coins are in circulation, the most active exchange for working, trading and exchanging tokens is Binance.

VeChain to Euro

Considering the Vechain rate to the euro, you can see that the price of the cryptocurrency is 0.00367858 euros, which gave a decrease in the value of the asset in 24 hours by 0.72%. The daily turnover of the token in this currency is 21,745,066 euros.

Where to store VeChain

After VeChain Thor moved to a personal blockchain, it became impossible for asset holders to store coins on wallets that only support the ERC20 system. Together with such an update, a wallet was created for both VET and THOR platform coins.

To store VeChain , you can use several options, although the choice is small. Users do not have to worry that they will have to use only exchanges for token savings, there is the possibility of using hardware devices that help reduce the likelihood of funds theft.

Among the web wallets you can use:

MyEtherWallet, which is open source. It has been available to users since 2015, technology and algorithm compatibility make it one of the best for storing coins. Keys are not controlled by a third party, there is compatibility with cold wallets, including Ledger Nano S and Trezor.
MetaMask is a browser version that has been running since 2016. Installed as an extension for Chrome or Firefox, and the keys are fully encrypted with a security code. Used for VET and other coins.

Among hardware (cold) wallets, one can distinguish the Ledger Nano S. This multi-currency option works with Bitcoin and altcoins, and also supports the ERC-20 standard. Trezor, which hit the market in 2014, is not a bad choice. Works with many cryptocurrencies, including VET. Hardware models can be connected to a PC running any operating system. They are the safest today, because all coins and personal data are offline.

How much VeChain is total

It is important for any person who uses the platform to conduct business and other purposes to understand how much VeChain has been released in total. Coins with a fixed amount, created 86712634466 of which only 55454734800 is in circulation.

VeChain emission

All the details on planning volumes and the principle of issuing new tokens are currently not being distributed, remain unknown. The issue of Vechain is currently stopped, some of the tokens are frozen and will be used as incentive payments to creators and to promote the project and products.

What VeChain provides

The success of the VeChain project is ensured, first of all, by the high stability of the technical direction, which indicates a strong market position. The company constantly enters into contracts with many well-known firms, which in the future may have a positive effect on the rate of coins.

The platform works in several directions at once, and the project method was used for the first time on medications. This solution helped eliminate counterfeits.

The coin is focused on an emerging market, supported by the fact that the technology makes it possible to use many new technologies that facilitate the purchase of goods and services on the Internet using cryptocurrency. The creators assure that in a few years they will be able to popularize the asset, the goods may be tokenized, and all transactions will be safe and transparent.

As a result of this, the coin and the platform as a whole may be one of the most popular for many entrepreneurs, stores on the Internet that operate through online services, and other platforms.

You can be convinced of the promise of VeChain by looking at the list of corporations that are already actively using the technology. Among the main partners you can see:

concerns BMW, Audi, Renault, which produce digital passports;
Ricci Curbastro, West Wind Wines, Ruffino Wines, which use a platform to control the movement of alcoholic products along the supply chain;
The H&M Group uses technology to control the clothing supply chain.
Price water house Coopers - due to this partnership, the company and the entire VeChain project were able to gain new markets, including Hong Kong, Southeast Asia. In addition, PwC is adding its own accounting innovations for VeChain Thor technology.
Shanghai Waigaoqiao Direct Imported - the firm is considered one of the largest companies on the market that supply wine to China. In this area of activity, the corporation accounts for about 30% of the market. Any bottle of the drink that is imported into the country includes a label with a code from VeChain, allowing consumers to know the history of the wine from its inception.
Kuehne & Nagel International AG - a company that is engaged in transportations around the world, is one of the largest in its field. The organization has more than 1300 offices in 108 countries and almost 100 thousand employees. With the help of the described project, customers of the corporation can identify goods.
Liaoning Academy of Agricultural Sciences (LAAS) - With this partner, VeChain developers are building a blockchain, a platform to manage business processes in an agricultural environment for Liaoning.
DNV GL is a major partner in the identification and authentication of goods. Due to the project, the company can form a complete picture of the supply chain right to the buyer, and all the data is transparent and reliable.
Guiyang Authorities - Partnership with VeChain enables the government to create a smart city. Due to the blockchain and the developed platform, it is possible to track the information of the energy industry and winemaking.

The main message of the token is to solve complex problems and simplify life for any person. For example, buying a used car, reading information from a chip, you can find out its full history.

The future of VeChain

The future of VeChain is possible, because the project is promising, it makes it possible to solve pressing and urgent problems, both for manufacturers of goods and consumers. The problem of counterfeit goods and products is everywhere, this can be judged by the large list of partners of the VeChain platform. In addition, the team of specialists strictly follows the Roadmap, constantly developing the project.

Among the positive and additional activities for the development of the platform, the formation of a full-fledged system for the implementation of the ICO (Initial Token Offering) is considered . After moving everything to a personal blockchain, the project was able to provide the necessary tools, including:

formation of smart contracts;
opportunities for the development of decentralized applications;
several variants of tokens, including VET and THOR.

The main difficulty in the successful development and implementation of all solutions is high competition for VeChain, because you will need to compete with giants in the cryptocurrency market, including Ethereum and EOS .

Regardless of the prospects and all the advantages in the field of identifying services and goods, developers need to keep competitors in mind. For example, Waltonchain (WTC) makes it possible to use such solutions, but only manufacturers can use products and tools. The main plus is the possibility of mass production of RFID-identifiers, and such an opportunity has not yet appeared in VeChain.

An equally influential competitor is the Modum (MOD) project, which offers to solve the issues of storage and transportation of food, medicines and other goods that need special conditions. Developers use a similar technology.

Many specialists in the cryptocurrency market are positive about the coin, there are many good reviews and predictions. The VeChain project has all the resources and the chances for multiple growth in value over the coming years. There are several important reasons for this:

An excellent team, which includes only experienced specialists who know their business and purpose exactly.
Strong partners, including Louis Vuitton, using NFC chip marking.

Despite the relative novelty of the project, it already works successfully in real life, which indicates excellent investment opportunities in the future.

Its too early to talk about the development of the VeChain cryptocurrency, its popularity in all areas of activity. However, there are forecasts that the coin will be widely distributed and its value could rise to $ 15. The platform is capable of actually launching blockchain into everyday life, making it easier for the end consumer to do business and purchase.

The token is volatile, so its not too late to invest in it. With positive results, there will be rapid growth, so the asset cannot be regarded as a short-term investment. It takes more time for development, which will help to fully realize. If we consider the issue of investments in cryptocurrency and possible predictions, then today is exactly the time when you need to buy a coin, because in a few years its price will not be hundreds of times higher.