What is VeChain (VET)?

What is VeChain (VET)?

VeChain launched in 2015 as a proprietary consortium chain, collaborating with a variety of organizations to investigate blockchain applications. VeChain would begin its public blockchain transition in 2017 with the ERC-20-coin VEN before establishing its own mainnet in 2018 under the ticker VET.

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VeChain's mission is to leverage distributed governance and Internet of Things (IoT) technology to build an ecosystem that addresses important data challenges in a variety of global industries, ranging from healthcare to energy, food and beverage, sustainability, and SDGs.

By utilizing the potential of trustless data, VeChain is laying the groundwork for the fourth industrial revolution, which requires real-time and trustless data exchange across many users.


Component VeChain (VET)
Technologies Smart contracts, ToolChain, Proof of Authority
Market Capitalization $6 Billion+
Open-Source Yes
Consensus Mechanism Proof of Authority
Smart Contracts Yes
Founders/Authors Sunny Lu and Jay Zhang
Launch Date 2015
Circulating Supply of Coins 64,315,576,989 VET
Maximum Coin Supply 86,712,634,466 VET
Mining-based Coin? No
Is VeChain a Stablecoin? No
Does VeChain have a burn rate? Yes
Does VeChain have a Whitepaper? Yes, the whitepaper can be viewed here


Evolution and Development of VeChain

Sunny Lu, the former CIO of Louis Vuitton China, founded this innovative blockchain-based project in 2015. He merged his knowledge in luxury products with blockchain technology to develop a supply chain management IoT (Internet of Things) application. He continues to lead VeChain as CEO through a non-profit organization named the VeChain Foundation.

  • VeChain was founded in 2015
  • VeChain V0.1 was launched in June 2016
  • In May 201, VeChain partnered with PwC partners as part of an incubation program
  • In 2017 the VeChain Foundation launched
  • February 2018 VEN was rebranded to VET
  • In late 2018 VeChain launched its mainnet and mobile wallet app


What makes VeChain unique?

Rather than it being a general-purpose blockchain, VeChain takes a more specialized approach to development. Its structure is optimized for the flow of products and several different services through supply chains, which qualifies its token, VET, as a utility token.

Additionally, it has a dual token structure, with one type of token serving as a funding initiative and another powering the network. VeChain has been extremely clever with its alliances, gaining a national-level collaboration with China as it creates smart cities.

Additionally, it has partnered with PricewaterhouseCoopers (PwC), which has assisted VeChain in promoting its blockchain to consumers. Indeed, a former PwC executive works as the VeChain Foundation's chief operating officer, and a current PwC executive is on the advisory board.

VeChain was founded to disrupt established business structures and is most recognized for its efforts in the supply chain, which is a specialized area that has remained unchanged for decades.

Its efforts in establishing a decentralized trust level for multi-party networks have already shown significant results with high-profile clients and government entities.

Transparent technology, which is void of a single point of failure or control, enables increased security, efficiency, and simplicity of tracking for all types of data while also lowering costs via trustless automation via smart contracts.

Carbon, supply chains, international logistics, incentive-driven ecosystems, and car passports all benefit significantly from the digitization of trust and collaboration enabled by this technology.

VeChain's platform, as a result, appeals to a diverse range of clients and sectors.

According to VeChain's official whitepaper, the project's unique proposition is based on its dual-token structure, transformative protocols such as ‘fee delegation,' and a one-stop ‘ToolChain' platform.

This all enables crypto-averse businesses to pay in fiat for VeChain's Blockchain-as-a-Service, while smart contracts handle gas payments, ensuring frictionless network use even in strict jurisdictions.

Some of the businesses that have already incorporated VeChain into their business model include:

  • BMW use VeChain to avoid odometer fraud in the sale of automobiles
  • LVMH use VeChain to track luxury leather goods across the globe
  • Walmart uses VeChain to track food provenance around the globe


What are the main uses for VeChain?

VeChain offered currencies (dubbed VEN) on Ethereum before launching its proprietary platform in 2018. With the launch of this new platform, VeChainThor was rebranded (known as VET).

VET is the cryptocurrency that is utilized in VeChain's system. The more VET a person or business has, the more priority they have when it comes to utilizing the blockchain's resources.

Additionally, VET may be used to create a second type of token known as VeThor or Thor Power (VTHO), which can be used to access technologies to effectively solve supply chain issues.

Thus, a business that wishes to use VeChain's monitoring for its supply chain must pay VTHO to augment the blockchain with more information.


What is the future potential for VeChain?

VeChain's potential is limitless now that it has its own platform, a track record of keeping commitments, and attractive collaborations with large firms.

There are expected further announcements on their agreements with large companies such as BMW and Renault, and there is no knowing how many other firms VeChain will recruit under PwC's banner.

The currency is often regarded as a safe investment for investors because it has a slew of important partners and real-world applications.

The VeChain blockchain platform's white paper details its objectives. Its primary objective was to upend the supply chain industry by enabling actionable and transparent data. VeChain also aims to become a pioneer in DApps and ICOs, which are launched on the blockchain in addition to being front of the line with the Internet of Things (IoT). 

Price analysis on VeChain

VeChain was initially launched in 2015, and its VEN token was rebranded in 2018 to VET. The price analysis on VET for the past four years are indicated as follows:


  2018 2019 2020 2021 to date
VET Price High $0.019 $0.009 $0.02 $0.25
VET Price Low $0.007 $0.003 $0.002 $0.01
Market Cap $1.08B $514M $1.30B $16.3B


Price prediction on VeChain

Experts estimate that VeChain's price will continue to rise, with the VET token reaching $0.38 by 2023 – mostly because of agreements with large companies such as PwC, Renault, and others.

Others predict that the price on VET will be between $0.50 and $0.86 by 2025, which bodes well for investors.

This performance is due to the enormous number of businesses that have used the VeChain Thor platform to develop apps that integrate blockchain technology into the physical world. LVMH, Walmart China, and BYD are all examples of these firms.

Another issue is the excitement generated by social media. VeChain has gained popularity on social media in recent months, particularly on Reddit.

It has resulted in many people purchasing the currency because of the ‘fear of missing out (FOMO) phenomena, which is well-known in the field of cryptocurrency.


Which wallets are the best option for storing VeChain?

The following wallets can be used to store, send, and receive VET tokens:

  1. Ledger Nano X
  2. KeepKey
  3. Ledger Nano S
  4. Trezor
  5. Atomic Wallet


1. Ledger Nano X: The Ledger Nano X is one of the best physical wallet options, which are specifically designed to safeguard digital assets. As opposed to hot wallets, which require a consistent internet connection and are thus open to attack, the Nano X securely maintains the users' private keys on the device itself, making it effective cold storage.


2. KeepKey: KeepKey is a hardware wallet for bitcoin that supports over 40 different cryptocurrencies. It is nicely designed, simple to use, and with a reasonable price tag.

When compared to its primary competitors, it continues to lack currency support and corporate repute. However, KeepKey is an excellent hardware wallet overall and is still favored by many investors and traders.


3. Ledger Nano S: There is a reason why the Ledger Nano S is by far the most popular hardware wallet on the market. It is little, yet it is simple to use. It is well-supported and has a solid track record in the level of protection.

However, it should be noted that the device is hard to maneuver, and the screen leaves much to be desired.


4. Trezor: A Trezor wallet is one of the major crypto wallets available. Apart from providing superior protection, it is also reasonably straightforward to use and provides excellent support and updates.

Although it may seem pricey in comparison to some other popular hardware wallets available on the market, the services that it offers make it worthwhile.


5. Atomic Wallet: What most users like about Atomic Wallet are its currency and token support. Along with security and the option to buy cryptocurrencies with a bank card directly from the wallet, with some transaction costs that apply. Other exchanges than Atomic Swap are provided to cover as many crypto assets as feasible.


Where can you buy VeChain?

VET can be purchased from the following exchanges:

  1. Binance
  2. BitFinex
  3. KuCoin
  4. Bitmart
  5.  Uphold


1. Binance: Binance is a popular exchange option because clients can trade one cryptocurrency for another with minimum fees. In addition, there are more than 150 cryptocurrencies are available for trading and exchanging on the platform.


Traders can choose from a wide range of crypto assets to trade Unregulated
The exchange features powerful trading platforms There is no telephonic support offered
Traders have the option to purchase crypto using their credit card There is a lack of daily market analysis
There is a comprehensive training academy that can be used by novice traders The platform does not accept United States clients
There is 24/7 customer support offered Only offers crypto trading, no forex trading, stock trading, or CFD trading
Well-known exchange with a high trust score  


2. BitFinex: With its mobile trading platform, Bitfinex is an electronic cryptocurrency exchange trading platform that allows customers to purchase and sell a wide range of digital assets such as Bitcoin and Ethereum with minimum slippage.


The exchange is known for its innovative mobile trading app  Unregulated
The exchange has competitive transaction costs There is no desktop trading software
Educational material is provided to beginner traders Only offers crypto trading


3. KuCoin: KuCoin is an electronic cryptocurrency exchange that allows users to trade a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. A variety of trading tools and instructional materials are also available to clients, as well as 24/7 customer service and reasonable prices.


KuCoin is renowned for its innovative trading software The platform does not offer service to United States clients
Traders have access to powerful trading platforms which are feature-rich Unregulated
There is 24/7 customer support offered  
Traders have access to several digital assets that can be traded  


4. Bitmart: Bitmart is a globally-recognized digital currency exchange trading platform that allows users to swap digital currencies for fiat currency and vice versa. A multi-layer and multi-cluster system design ensure system stability, security, and scalability. Bitmart supports English, Mandarin, Japanese, and Vietnamese.


The exchange offers its services to United States traders The exchange is still new and has not yet been battle-tested
The exchange supports a wide range of digital assets in the crypto market There is a lack of major coins listed on the exchange
The trading costs are reasonable  
The user interface is friendly, and the exchange has a decent financial system  


5. Uphold: Uphold is a one-of-a-kind desktop and mobile trading platform that is renowned for accepting crypto traders of all levels of experience.

Uphold eliminates the need for numerous transfers to acquire metals, cryptocurrencies, or equities; instead, traders can trade assets immediately using a bank account, the cryptocurrency network, or debit/credit card for a 0% trading commission.


Uphold has transparent fee schedules The educational section is not as organized as that of competitors
There is no minimum deposit or investment requirement because assets can be purchased fractionally  
There are no fees relating to accounts, custody, tickets, or inactivity fees  
There is a simple, one-step conversion between digital assets  
There is a choice between a powerful desktop platform and mobile trading app  
The trading platforms are user-friendly and suited for beginner and experienced traders  

You can buy VeChain safely from these cryptocurrency platforms.

Does VeChain use coin burns?

Yes, VeChain burns 70% of transaction fees, which are denominated in VTHO, the VeChain token and utility coin of the platform. VTHO is not synonymous with VET, which they refer to as their store of value as well as intelligent payment currency. They do, however, engage in VET buybacks, which function similarly to token burning.

VTHO is a more stable and useful coin than VET and serves as the VeChain blockchain's utility token.

This coin is used to pay for data transactions on their blockchain. 70% of transaction costs are burnt, while 30% is distributed to nodes for creating new blocks and verifying transactions.


What is VeChain’s largest Competitor?

The largest competitor of VeChain is Blockverify.

Enhancing anti-counterfeit measures requires a decentralized, scalable, and tamper-resistant approach. Block Verify will utilize a private blockchain, a highly scalable and transparent technology, to allocate an asset to each made product.

These assets are then uploaded to the blockchain and given a unique identifying number [referred to as a “hash”]. The blockchain will check these hashes to ascertain if the item is genuine or counterfeit.

Whether it is a purse, a tablet, or – more significantly – a medicine, the blockchain will verify every object on the planet.

This is where the primary power of this technology shines through: everyone in the world may access the blockchain without restriction and perform their own item verifications.


What is the Staking Process involved with VeChain?

Staking is the process of allocating or “staking” a coin on the blockchain to earn a passive income. Once set up, it takes no further work. And that's why people favor VeChain staking.

Staking VeChain allows the user to earn extra income on their VET holdings, which is a great way to save up for the future. For a newcomer, staking cryptocurrency like VeChain might be complex, but there are a few basic procedures to follow to ensure success.

Staking VeChain has two key benefits. A VET Masternode and a VET stake in a digital wallet. The first way is more complex and involves more technical expertise, but it pays off.

Casual users prefer the second option because it rewards them but requires less effort and knowledge to begin. Users who stake VET tokens are paid VTHO tokens monthly.


What can VeChain smart contracts do?

A smart contract is just software that operates on the blockchain platform and network. Smart contracts are made up of a collection of codes that represent their functionalities and data that represents their state, both of which are stored at a particular address on the blockchain.

On the VeChainThor blockchain, there are seven pre-built smart contracts. They are referred to as built-in contracts not just because they are distributed alongside the Thor source code but also because many of its functions are written natively in “Go” rather than Solidity for efficiency reasons.

The seven smart contracts of VeChain according to their source codes are as follows:

  • Authority.Sol provides the methods that are used to deal with the Authority Masternodes in addition to adding functions to either add or revoke these nodes.
  • Energy.Sol is the smart contract that defines the interface for the operations on VTHO.
  • Executor.Sol indicates the methods that are used to facilitate all on-chain governance on the VeChainThor blockchain.
  • Extension.Sol is implemented to allow for the contract code to question all information associated with previous blocks. In addition, it can also become aware of the runtime information of the current TX.
  • Extension-V2.Sol is the extension on the original Extension.Sol source code that defines a new method that can be used to query actual gas payer of current TX.
  • Params.Sol provides the necessary methods to either “get” or “set” global network parameters, which relate to the reward ratio and the base gas prices, which are subsequently indexed by keys.
  • Prototype.Sol facilitates MPP and can be used to query information of specific accounts.


Is VeChain a Good Investment?

Yes, VeChain is a good investment for the following reasons:

  • It is designed for business, with the stated goal of developing a trustless and dispersed business ecosystem platform that enables transparent information flow in addition to efficient collaboration as well as high-speed value exchanges.
  • VeChain has achieved significant popularity because of its tried-and-true blockchain-as-a-service approach. Several prominent partners have started using VeChain's blockchain to optimize their supply chain.
  • VeChain has been one of the most successful case studies of how the combination of distributed ledger technology (DLT) and internet of things (IoT) platform could yield in the global economy.


The fact that so many prominent customers of the VeChain blockchain have reported significant business gains indicates that there is a significant value. As a result, VET, VeChain's native currency, could potentially appreciate in proportion to the network's usage and popularity.

VeChain, like many other cryptocurrencies, has a maximum supply of 86.7 billion coins, with all coins already minted.

As a result, investors betting on VeChain are anticipating that growing cash inflows into the network because of further partnerships and increased utilization would drive the price of VET higher.


What is the supply and distribution of VeChain?

VeChain has a circulating supply of 64,315,576,989 VET and a max supply of 86,712,634,466 VET. The circulating supply refers to the coins which are currently in circulation on the market, while the max supply is the number of coins that will ever exist, which gives VET a level of scarcity.


Is VeChain a viable Alternative Coin?

Yes, VeChain is a good alternative coin based on the following:

  • Traceability – VeChain transactions are recorded on the public ledger, but the true identities and location of users are not known.
  • Hacking – VeChain's blockchain has never been hacked.
  • Security – VeChain uses innovative security measures and protocols to ensure security on the blockchain and network.
  • Technology – VeChain uses innovative technology, including several different smart contracts, ToolChain, and Proof of Authority.
  • The potential investment and the future uses of VeChain are extremely positive because of its strategic partnerships and its roadmap to become a global entity for supply chain management.


What are the differences between VeChain And Bitcoin?

VeChain's volatility is 1.67 times that of Bitcoin's. It trades about -0.11% of the overall potential profits per unit of risk. Bitcoin's volatility is now at -0.06 per unit.

Furthermore, VeChain employs a Proof of Authority consensus technique rather than Bitcoin's Proof of Work. 


  Bitcoin VeChain
Price change 20/21 +400% +370%
Market Cap $800 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity Very High High
Altcoin Rank #1 – Original Crypto #31


What are the differences between VeChain and Ethereum?

Gas is one of the main distinctions between Ethereum and VeChain. However, unlike the VeChainThor network, Ethereum only has a single coin, ETH.

Due to the expanding popularity and price of Ethereum, consumers have had to pay significant gas prices. VeChain, on the other hand, overcomes this issue by having two independent utility tokens.

The necessity of a charge for every transaction on the blockchain network stops actors from spamming. In the meantime, Ethereum uses the same consensus technique as Bitcoin, referred to as mining or proof-of-work (PoW).

Businesses must buy VTHO from holders to use the blockchain, which increases the possibility for VET appreciation. As VTHO demand grows, so does the return on investment.


  Ethereum VeChain
Price change 20/21 +880% +370%
Market Cap $460 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity Very High High
Altcoin Rank #2 #31


What are the differences between VeChain and Dogecoin?

Dogecoin (DOGE) was created as a joke in the United States in 2013, but it swiftly grew in popularity. It grew in popularity as a cryptocurrency (DOGE) for tipping content providers (mostly on Reddit and Telegram).

VeChain (VET) is a blockchain platform that aims to improve the supply chain. Each product is assigned a unique QR code by VeChain. These numbers allow items to be tracked from the factory to the merchant.

The data is saved on the blockchain, and this allows VeChain can host DApps for business initiatives to let them safely store, distribute, and track data.


  Dogecoin VeChain
Price change 20/21 +7,300% +370%
Market Cap $22 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity High High
Altcoin Rank #12 #31


What are the differences between VeChain and Neo?

Neo is a decentralized as well as an open-source blockchain-based platform that is being developed by a Chinese community. Neo allows developers from around the world to automate and optimize asset management using smart contracts.

Additionally, it incorporates powerful native infrastructures like as decentralized storage, oracles, and domain name service, which serve as the foundation for the Next-Generation Internet.

VeChain (VET) is a blockchain-based supply chain platform. Each VeChain product has its own QR code. These codes trace goods from manufacturing to stores. The data is on the blockchain, and VeChain can host DApps for businesses to securely store, distribute, and track data.


  NEO VeChain
Price change 20/21 +160% +370%
Market Cap $1.70 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity Medium High
Altcoin Rank #69 #31


What are the differences between VeChain and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. VeChain, on the other hand, is fungible, which means that one VET has the same value and characteristics as another VET.


What are the differences between VeChain and Solana?

Solana outperformed other cryptocurrencies in 2023, becoming the world's fifth-most valued cryptocurrency in December. Solana is now worth over $60 billion, and its expanding investing community is enthusiastic about how it compares to market giants Bitcoin and Ethereum (ETH).

In 2023, VeChain will be a solid investment. Technical research indicates that the risk/reward ratio is about nine to one (8.92:1), which is superior to Bitcoin and Ethereum. The basics are also strong, with strong technology, a strong development team, and a plethora of real-world use cases.


  Solana VeChain
Price change 20/21 +9,300% +370%
Market Cap $54 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity Very High High
Altcoin Rank #5 #31


What are the differences between VeChain and Cardano?

Conversely, Ethereum co-founder Charles Hoskinson founded Cardano in 2015. Its native asset ADA intends to support smart contracts and the development of distributed apps as well as transmitting and receiving the native coin.

Cardano's blockchain, on the other hand, features a novel two-layer design. One is used for normal financial transactions, while the other is used for smart contracts. Additionally, Cardano was the first peer-reviewed digital currency in the world.

Before building its very own network in 2018, VeChain was on Ethereum. Sonny Liu created it in 2015, and the network grew exponentially in 2016.

The VeChain Foundation was founded in 2017 by PoW and VeChain as an incubator initiative. VeChain might have been a general-purpose blockchain, but it chose to make VET a utility asset, using its acceptance rate and usability index.

Cardano has outperformed VeChain by a wide margin. However, this is not a definite indication that it will eventually outperform VeChain. In addition, Cardano is also more popular than VeChain according to the alternative coin listing as per market capitalization and other metrics.

Other differences include the fact that VeChain burns 70% of transaction fees while Cardano does not. Cardano employs a Proof of Stake while VeChain uses Proof of Authority. In addition, VET is deflationary while ADA is inflationary.


  Cardano VeChain
Price change 20/21 +2,100% +370%
Market Cap $42 Billion+ $6 Billion+
Past Hacks None Yes, 2019
Popularity Very High High
Altcoin Rank #7 #31


What is the advantage of using a non-custodial wallet instead of a custodial wallet?

A non-custodial wallet is a special crypto wallet that enables the user to act as their own bank. This means that users retain total control over their money and the private key connected with them.

The advantages of using a non-custodial wallet include:

  • Users have complete control of their funds.
  • Details that are associated with the user's crypto wallet and associated funds depend on the user, which lowers the chances of data breaches.
  • Users have access to instant withdrawals.

Is a custodial wallet safer and more secure?

No, a custodial wallet is not necessarily safer than a non-custodial wallet.

Even though a custodial wallet may be seen as less secured than a non-custodial wallet, many people prefer them because they do not demand as much responsibility and are typically easier to use.

If users do not take enough safeguards, losing their password to a non-custodial wallet may be financially catastrophic.


What are the disadvantages of using a custodial wallet?

The disadvantages of custodial wallets are:

  • Users do not have control over the autonomy of their wallet
  • There are requirements with “Know Your Customer” (KYC) verification
  • Data breaches are an inherent threat
  • There is typically no offline facility provided with custodial wallets