In the cryptocurrency sector, blockchain technologies other than BTC have begun to stand out. Projects such as Ethereum, Solana, and Filecoin have garnered a large investor base by adapting blockchain technology to different industries. One of these projects is VeChain (VET).
Project provides services in the field of supply chain management and focuses on the daily operations of cryptocurrency companies. This guide on Zatrun.com contains answers to questions such as “What is VeChain?” Keep reading for detailed information about the project.
What is VeChain and How Does It Work?
Supply chain management is a challenging issue for most companies. It is important from a workflow perspective, but difficult to protect. Many companies in the market use traditional information gathering methods. However, this makes companies vulnerable to counterfeit products. It is also likely to cause communication problems between relevant parties. VeChain solves these problems by first automating the workflow and increasing traceability. It also makes it easy for companies to meet their business needs by using different converters.
Blockchain aims to make supply chains transparent, traceable, and advanced for businesses. The platform optimises the supply chain process by combining “Internet of Things (IoT)” technology with blockchain. The ecosystem originally worked on Ethereum and launched its own blockchain, VeChainThor, in 2018. The blockchain tries to meet the needs directly with Dapps created to solve real-world problems.
The VeChain blockchain uses a consensus mechanism called “Proof-of-Authority (PoA).” PoA is a modified version of Proof-of-Stake. According to this, users who stake tokens do not become network validators. The project itself determines who will be a validator and masternode using an algorithm called DPRP. In this determination process, the user’s history is important. However, the network is a centralised blockchain. This provides it with higher speed and security.
What is VET? Is It a Good Investment?
There are two different tokens on the platform. These are VET and VTHO. VET coin works as a value asset in the protocol. VTHO is used to strengthen smart contracts. These tokens work on the blockchain network called VeChainThor. It is also worth noting that VET coin is a cryptocurrency that cannot be mined. Additionally, it does not have a feature like staking.
According to CoinMarketCap data, VET coin is the 34th largest cryptocurrency. The asset has a market capitalization of over $1.74 billion, and one VET coin trades at $0.024. The cryptocurrency has become one of the projects with the highest adoption rate in the blockchain space. Many security-focused companies are using VeChain. However, the platform’s centralised structure is contrary to the philosophy of blockchain. Company mistakes can deter investors.