The Beginning of VeChain
VeChain was launched in 2015 as a blockchain based cryptocurrency project. Its main purpose was to streamline the supply chain management industry.
VeChain creators first experimented with the Internet of Things and a blockchain network in 2016.
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How it started?
While still working for BitSe, a Chinese blockchain firm, VeChain founder Sunny Lu and others raised the idea of creating a better blockchain that was superior to those that were already in the market.
They settled on building VeChain atop the Ethereum blockchain.
One of the flaws they noticed in most blockchains was the decentralization of people, something that dealt a blow to the projects governance and consensus models because of the diverse opinions of the participants.
They introduced what they call "harmony in governance" by adopting a Proof of Authority Consensus algorithm.
Their plan worked.
Since 2016, VeChain has been on a growth trajectory, attracting top partners and growing its value by a large margin.
In 2018, it was rebranded to VeChain Thor.
Team Behind VeChain
The project is led by its founder and chief executive, Sunny Lu.
He's mentioned as an electronics and communication engineering graduate of Shanghai Jiao Tong University.
His LinkedIn shows he's worked for Fortune 500 firms as IT executive for more than 13 years.
Next up is Jay Zhang, the project's chief finance officer.
He's a former sales manager at PwC and Delloite.
The third person on the team members list is Kevin Feng, the Chief Operations Officer.
A former PwC executive, Feng has over 12 years experience in cybersecurity, emerging technology and privacy.
Other team members include Jian Liang Gu, the chief technology officer, Richard Fu, VP-Marketing among others.
What Is VeChain?
VeChain is a cryptocurrency platform that was created in 2015.
Essentially, the platform runs on top of the Ethereum blockchain.
It's a blockchain platform that allows developers to write smart contracts focusing on a variety of industries but revolving around supply chain management and inventory tracking.
Because of its many use cases, the platform has grown to become one of the fastest rising DApp platforms in the cryptocurrency industry.
The project is developed and maintained by VeChain Foundation, a nonprofit based out of Singapore.
The platform was built with inventory tracking in mind.
It combines its proprietary smart Chip technology (VID) with the blockchain technology, allowing companies to track their large inventories without any hassle.
Since its launch, VeChain has amassed a wealth of experience in a number of industries where its practicality found real world uses.
These include supply chain management, financial services, liquor sales, autos, luxury goods, retail, logistics and agriculture.
The technology behind it...
VeChain is based on smart contracts.
It allows developers to write smart contracts to track and manage their inventories.
The platform uses its VeChain Identity (VID) technology to track the movement of goods in the supply chain, right from the manufacturers warehouse to the consumer.
The VID is stamped onto a QR code or a Near Field Communication (NFC) on the product for easier tracking of goods.
All the information is then recorded on distributed ledgers that cannot be altered by anyone, thus preserving the trust and transparency of the VeChain platform.
VeChain creators realized early on that the open governance models used by most cryptocurrencies weren't effective and thus based their platform on a unique Proof of Authority protocol.
All in all, their concept revolves around a harmonized governance structure that seeks to address one of the major flaws of the blockchain; decentralization of people.
In a nutshell, VeChain doesn't rely on the consensus of the network but on the identity of the validator.
The platform relies on automated nodes to confirm transactions. Having streamlined voting and governance aspects of the platform, VeChain is able to deliver high frequency, high-speed transactions.
Initially, VeChain's base cryptocurrency was known as VEN, but that changed from February 2018 when its founder, Sunny Lu, rebranded the platform to VeChain Thor. Lu also announced that Vechain would move from the Ethereum platform to its own blockchain.
The VeChain Thor platform also launched twin tokens namely VeChain Token (VET) and VeChain Thor , the fuel that powers the VeChain Thor ecosystem.
The VET token is an ERC20 compliant utility token. The company minted a billion tokens for the token sale event.
As of writing, there were around 867,162,634 VET, although most of the tokens are still in the hands of the VeChain Foundation.
The Vechain platform was originally based on the Ethereum blockchain.
In February 2018, its founder rebranded it to VeChain Thor.
The new platform’s mainnet was launched in Q2 2018 and features a twin token system.
The platforms utility token, VEN, was rebranded to VET while THOR tokens were introduced as the gas that VET holders earn.
VET tokens allow users to use platform-wide services and transactions, including issuance of new dApps.
VeChain made news in February 2018 after it announced a new partnership with German car maker, BMW.
It has already inked partnership deals with BitHumb, one of Korea's largest cryptocurrency exchanges, and PwC Hong Kong and Singapore.
In April 2017, the company joined forces with Xiamen Innovation and Corelink to develop AssetLink, an enterprise level decentralization application.
Other key partners include; BabyGhost, BitOcean, Renault, Healthcare Co. Ltd, Kuehne &Nagel, MadeForGoods, Directed Imported Goods, Microsoft, and China Unicorn.
Others are, Jiangsu Printed Electronics and DNV GL. It's also one of the few blockchain projects to have partnered with the Chinese government.
Pros of Purchasing VET
Every investor looks for ways of profiting from an investment.
Given that VeChain is one of the fastest growing cryptocurrencies in the industry, buying VET tokens seems like a good move for committed blockchain enthusiasts.
Here are the pros of buying VET tokens:
a) You stand to earn passive tokens
For every VET coin you hold, you stand a chance to earn Thor tokens and this is emerging as an excellent avenue for investors looking to make some money.
The more VET tokens you hold, the more THOR you stand to earn.
You can always use your THOR to run decentralized applications or to execute smart contracts.
b) VeChains big-ticket partnerships
Seeing a company you've invested in attracting big name partnership is a welcomed feeling.
VenChain has inked several deals with companies such as PwC, BMW, and Renault.
Such partnerships boost investors confidence as they see the bright future that awaits them in case the project turns into a roaring success.
c) Rising prices of VET
Given the volatile nature of cryptocurrencies, any slight rise in price of tokens gives you a feel good feeling. Since January when most other cryptocoins have seen their prices drop, VeChain's price has not been affected.
Instead, it has been on the rise. As of writing, the VET token was trading at $0.0155.
d) Ready product
VeChain already provides a supply chain management solution to a number of businesses in the agriculture, luxury goods, and wines industries.
It's not one of those projects with brilliant ideas on paper but no product to show.
As such, this gives you the confidence that the project holds a bright future now that its product has been tried and tested.
Cons of buying VET tokens
There's no escaping the fact that VeChain is not the only blockchain project focusing on supply chain management.
Its success merely depends on how it stacks up against the competition.
The only advantage they have is that they rebranded and are now moving towards providing enterprise Apps, competing directly with the likes of Ethereum.
b) Lack of adoption
The platform relies on VET tokens to run its business activities.
As such, it must meet widespread adoption to create the necessary demand for VET tokens. In case it fails to gain huge adoption, the demand for VET and its value could go down.
c) VeChain Thor is a work in progress
While the rebranded product seems promising, it's still in the development stages and no one really knows how it fares as an enterprise dAPPs platform. Its chances of success can only be weighed when it becomes fully functional.
d) Many tokens could be confusing
There seems to be so many activities going on in the VeChain platform. From a rebranding exercise that changed the name of VEN to VET, to a new twin token model that introduces the THOR tokens.
For the typical investor, this could get a bit confusing and might need time to internalize.
Where to buy VET tokens
It's important to note that VET tokens cannot be mined.
That being the case, there are a few options available to you if you need to buy some VET tokens.
These include; buying from family or friends or trading an altcoin with VET in an exchange.
A digital wallet is a medium where you store your coins safely and securely.
VET tokens are ERC20 compliant and can be stored in any Ethereum based wallet.
Sidenote: We've reviewed the Ledger Nano S Hard Wallet here and we quite like and trust it.
Where to store your VET tokens
Now that you have bought your first batch of VET tokens, where do you store them?
You can secure your tokens using hardware or software wallets that are compatible with VET.
The most popular ones include Ledger, a hardware wallet and My EtherWallet, a software wallet that's open source and easy to use.
MetaMask, another Ethereum wallet known for its simple interface and centralized validation is another option.
Hope that helps you guys get familiarized with VeChain and subscribe to our email list below for more tactics and strategies that go beyond these articles!