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VeChain

0.00%

Market Cap (USD)

$2.7B

24H VOLUME (USD)

$262

Daily change

$0.0015

VeChain (VET) Live Price Chart

Imagine running a grocery store, and enjoying the possibility of checking the entire lifecycle of purchased goods: from the moment they're produced, through transportation and storage, until they reach your shelves. Or think about purchasing a used car from a private seller or local car dealership, with the peace of mind in knowing the mileage on the odometer is entirely legitimate? Like these examples, distributors could provide their customers with the highest quality and ethical standards. 

Once only a myth, this could become our new reality, sooner rather than later, thanks to VeChain. Designed as a decentralized network with an admixture of centralized efficiency, VeChain empowers businesses by claiming to provide unparalleled transparency, traceability and trust in various industries, especially supply chain. 

While some crypto enthusiasts exclusively buy BTC to build a strong portfolio, others prefer exploring new and exciting projects to diversify their holdings. In this article, we'll delve deeper into the essence of VeChain, its core features, tokenomics, and much more. Here we go. 

The History of VeChain

VeChain started as a subsidiary of one of the largest blockchain companies in China – Bitse. It was founded in 2015 by the former Louis Vuitton (China) Chief Information Officer (CIO) Sunny Lu, along with Jay Zhang. 

At first, VeChain was running on the Ethereum blockchain, before transitioning to its own blockchain in 2018. The blockchain rebranded and became VeChainThor (VET).

Partnerships 

VeChain is among the few blockchain networks to swiftly generate a substantial customer base. Partnering with a few globally-known powerhouses played no small role in its fast worldwide recognition.

Over the years, VeChain announced collaborations with top-rated companies such as:

  • Renault
  • Microsoft
  • Viseo
  • BMW Group
  • DNV GL
  • PriceWaterhouseCoopers (PwC)
  • BitOcean
  • Direct Imported Goods (D.I.G)
  • Kuehne & Nagel
  • Cointelegraph Consulting and many others

The Hacking Incident

Despite experiencing remarkable growth within a brief timeframe, VeChain's journey was not without its challenges and hurdles. On December 13, 2019, VeChain faced a horror movie moment with their own version of Jason Voorhees embodied in a hacker attack, which caused the company to lose 1.1 billion VET. 

The hacker (or group of hackers) compromised the Singapore-based foundation's buyback wallet, and transferred the funds to a private address. The estimated loss was around $6.53 million. The company acknowledged the issue within the organization and has since corrected the error and its protocols, as stated by the firm. 

What is VeChain? 

VeChain is a blockchain platform designed to streamline business processes and information flow for industries with a complex supply chain, fostering market transparency. The goal of this project is to create an open-for-all network, incentivizing businesses to build and run decentralized applications (dApps) for resolving real-world business operating issues. 

Although initially created on top of Ethereum, VeChain soon became one of its top competitors. It was designed with the idea of resolving some of Ethereum's main technical limitations, like:

  • Lack of suitability for running commercial dApps on a larger scale, at controllable costs
  • The absence of an appropriate economic model
  • Lack of ability to seamlessly address emerging issues, or breakthroughs through transparent protocols

VeChain hopes to resolve these challenges through two distinctive characteristics:

  • Proof of authority (PoA) consensus method
  • Dual-token system

The Role of Proof of Authority (PoA) Consensus Mechanism in VeChain Network

PoA regulates and secures transactions within the VeChain network. Its key distinction from other consensus protocols is that it relies on a limited number of reputable nodes (computers) to validate transactions and create new blocks, thus reducing the risk of malicious activity and increasing the overall reliability of the network. 

Proof of authority protocol powers the VeChain's on-chain governance mechanism. Unlike Ethereum's proof of stake (PoS) consensus protocol, where any user who stakes a predetermined amount of tokens can become a validator, in PoA, validators have to complete the KYC (Know Your Customer), in addition to holding a specific amount of tokens. 

In the VeChain network, anonymous contributors are not allowed to verify and add transactions to the blockchain. On the other hand, those who submit their credentials with the VeChain Foundation and stake 25 million VET can become Authority Masternodes. 

So, in essence, unlike other blockchains, which value the amount one stakes, VeChain emphasizes identity and transparency when selecting transaction validators. Also, validators earn their position through reputation, which they can increase or retain by maintaining the transaction process in order. 

By implementing the PoA consensus mechanism, VeChain aims to help process large transaction volumes rapidly, as it doesn't require a minimum number of validators to reach consensus (like proof of work (PoW)). Also, it requires less computation power than PoW and PoS, making it more efficient and environmentally friendly. 

The drawback of this approach is its dependence on a central authority to verify and authorize users eligible to participate in transaction processing.

However, on a more positive note, VeChain is working to improve its consensus protocol to ensure a more randomized and distributed block-creating mechanism.

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VeChain's Versatility and Possible Use Cases

Unlike other blockchain projects that rely solely on potential use cases, VeChain has demonstrated its value through real-world implementations. Below are the most notable examples of VeChain's transformative potential.

Group Renault Collaboration

Despite its strict prohibition, an estimated one million cars in the U.S. have fallen victim to 'car clocking,' an illicit practice where approximately a million car enthusiasts and consumers unwittingly purchased vehicles with manipulated mileage.

To tackle the issue, Group Renault partnered with the VeChain blockchain to prevent such frauds. Each vehicle will get its digital identity, allowing every owner to get a private key to access car data with a QR code, NFC tag or RFID tag for easier traceability. Ultimately, this should prevent odometer fraud and enhance the trust between sellers and customers. 

VeChain and BMW

By joining forces with a German automobile giant, VeChain could play a major role in creating a unique car digital footprint. This can potentially allow users complete control over data exchange and provide them with insight into essential data like:

  • Car mileage
  • Repairs
  • Additional services of a vehicle

The end goal is to create a new future in the automobile industry where road vehicles will become forgery-proof. 

Improving Traceability: Walmart China Becomes VeChain-Powered

In 2018, VeChain partnered with Walmart China in a common goal to enhance the supply management sector. The Walmart China Blockchain Traceability Platform could trace the origins of 25 different products, including:

  • Leafy greens
  • Dairy products
  • Mangoes, etc. 

The partnership extended in 2023, shortly after VeChain released its VET 3.0 protocol. 

The Dual-Token System

The VeChain ecosystem uses two native tokens:

  • VET – to store and transfer value
  • VTHO – used as a gas fuel (transactions on the blockchain)

VET is the primary cryptocurrency of the VeChain network and is used for transactions, execution of smart contracts and as a store value of this blockchain. Also, staking VET generates VTHO. 

VTHO was designed as a means to pay for transaction costs and self-automated contract execution. It covers the computational costs associated with transactions and operations within the network. Unlike VET, users are not able to store VTHO in their crypto wallet

The main idea behind creating two tokens was to offer more stable fees (similar to gas and ETH Ethereum uses), given the fact that VTHO supply can be adjusted, which is key in maintaining a stable price for transactions. 

Current VET Price and Chart

Some crypto aficionados prefer stability, which is why they'll typically look for stablecoins and opt to buy USDC, for example. Others thrive on volatility because of its potential to create a vast sea of opportunities. 

Early adopters could have seen massive benefits, however, the VeChain price today is way below its all-time high. At the time of writing (January 9, 2024), VET hovers around $0.030. 

For the most up-to-date information, you can check the VET to USD live price on CEX.IO, providing real-time insights into VeChain's current market performance. 

Market Statistics

The current VET market cap is $2,174 billion, which puts it among the top 50 cryptocurrencies in this category, just above TrueUSD, Mantle, Bitcoin SV, THORChain, Algorand, Aave and many others. 

On January 9, 2024, its 24-hour trading volume stood at $18.23 million, witnessing a decline from the $33.84 million recorded just a day prior. The peak trading activity occurred on December 20, 2023, when a substantial $50.28 million worth of assets were traded, marking the highest volume to date.

VET Price History

The CEX.IO price chart reveals that the VET value was minimal, fluctuating between $0.004 and $0.017 until the onset of 2021. VeChain token experienced its first major surge in March 2021, reaching over $0.094 by the end of the month. 

The most notable price movement occurred in April of the same year when VET experienced a remarkable bull run. It started the month with $0.09 and reached an all-time close to $0.23. The surge was driven both by the increased number of wallet addresses, adding 51,731 new users, and the collaboration with the Boston Consulting Group (BCG). 

Following the 2021 peak, the price of VET experienced volatility, with periods of both corrections and upward moments, ending the year with a price of $0.084. 

Finally, akin to other blockchain projects, the VET also felt the impact of the bear market. The price of the VeChain token steadily declined, reaching $0.03 on January 9, 2024, and trading at a mere fraction of the highest VET historical price. 

VET Tokenomics

The VeChain foundation initially minted 1 billion VEN tokens on the Ethereum blockchain. After launching the VeChain Thor main net in 2018, the VEN tokens were swapped for VET, on a ratio of 1:100. 

During the initial token distribution, 5% of the VET tokens were allocated to Team. Another 41% went to Crowdsale for the price of $0.00072 per token. A total of $20,000,000 was raised from the VeChain ICO. 

The rest of the tokens were distributed as follows:

  • 22% to Operation Development
  • 13.28% to Burned
  • 9% to Private investors
  • 9.72% to Enterprise investors

At the moment of writing these lines (January 9, 2024), the VET circulating supply is 72,714,516,834, while the total supply stands at 85,985,041,177 tokens. 

Keep in mind that these figures are subject to change based on the project's tokenomics and any future adjustments. For the latest and most accurate information, it is recommended to refer to the latest CEX.IO crypto prices or consult official publications from the VeChain Foundation and the project's official website.

Community and Social Media Links

The VeChain community is an invaluable hub, accessible through various platforms. The VeChain official website serves as a comprehensive resource, offering in-depth information and updates. Here, enthusiasts and users can learn more about the company's mission, partnerships and upcoming projects. 

Community members can actively participate in discussions and stay updated by engaging on Facebook (Meta) and Instagram. The VeChain's interactive environment allows users to connect, share insights, and remain informed about the latest developments within the blockchain. 

Whenever you're a beginner or seasoned blockchain enthusiast, the X official page can provide you with tailored content that caters to specific interests. Joining the VeChain Discord channel opens new avenues for real-time discussions with other community members.

The Telegram community channel provides instant connectivity, enabling users to share ideas and information seamlessly, in addition to getting on the spot announcements. 

Finally, VeChain boasts an open-source code, meaning those interested can delve into VeChain's inner workings, contribute to its development, and gain a deeper understanding of the platform's technology and principles by visiting its official GitHub repositories. 

FAQ

What is VeChain good for?

VeChain is a business-oriented blockchain platform that allows the seamless creation and execution of smart contracts at affordable prices. It is used in various industries, including supply chain, automotive, and healthcare sectors. 

Can I trade Bitcoin at CEX.IO?

Yes, CEX.IO is a cryptocurrency exchange platform that allows Bitcoin trading, providing users with a user-friendly interface, a variety of trading pairs, and fiat-to-crypto services for a convenient trading experience.

What is CEX.IO Staking?

CEX.IO empowers users to earn crypto rewards by holding a specific coin (or coins) to support the functionality of a blockchain network. Users can receive up to 30% rewards on crypto staking. For more information, we encourage you to look at our crypto staking calculator

Can I save money with CEX.IO?

Yes, CEX.IO offers a service that allows users to deposit and earn rewards on their existing tokens. All you need to do is create a crypto savings account, deposit your chosen cryptocurrencies, and watch your holdings grow over time. Users can potentially earn up to 5% rewards with the CEX.IO Savings service.

Where can you buy VeChain?

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