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VeChain Thor: Improving on Supply Chain Globally

25 February 2020 13:54, UTC
Denis Goncharenko

In 2015, VeChain VEN was introduced onto the Ethereum blockchain. After their ICO raised almost $20 million in 2017, VeChain shifted to its own blockchain and became VeChain Thor (VET). Many similarities still exist between VeChain Thor and Ethereum, despite their focuses being two very different worlds.

VeChain Thor aims to bring the brilliance of blockchain technology to tackle some of the biggest issues that affect modern supply chain reporting, specifically targeting the Internet of Things (IoT). Using smart contract technology and identifiers like RFID, QR codes, and NFC chips, VeChain is designed to help track and report on products within the supply chain throughout their lifetime.

23-04-2019 10:34:36  |   News
Despite this very niche and tangible purpose, VET is still a cryptocurrency worth considering if you’re a crypto trader. Trading on many platforms, including the renowned, focused Bitvavo, VET is used as the value token that pays for the platform’s power token VeChain Thor Energy (VTHO); similar to that of Ethereum’s Gas. The slightly less than well known token acts as a possibly profitable penny stock for traders who are looking for ground floor investments.

What is VeChain?

VeChain offers a novel, end-to-end approach to streamline supply chain information and quality control. The platform can be used to track any number of things including storage temperatures, point of products, product origin information, authenticity, transportation information and updates, and much, much more.

Meaning that commodities like medicine, food, vehicles, and other goods can be tracked and recorded throughout the lifetime of the product. Which can mean good things for consumers and suppliers alike. From creating better quality control standards or service improvements, to being better able to negotiate fair pricing systems or operational costs.

Founded by the former CIO of Louis Vuitton, China, Sunny LU knew first hand how important supply chain data can be to businesses and customers. Like all other blockchain technologies, the overall goal of VeChain Thor is to create and log data that is actionable, transparent, and immutable.

How Does VeChain Work?

The VeChain platform has two tokens, VET and VTHO. VET is a token and cryptocurrency, used to transact value to partners across the network, where VTHO is used to power smart contracts and transactions — working on the same principle of Gas in the Ethereum platform. Where it differs from Gas is that should whoever initiated the transaction not budget enough VTHO for any given transaction, they can then mine for more through a proof-of-work system. In Ethereum’s platform, if someone doesn’t budget enough Gas for any given project, the transaction is left uncompleted and is removed.

Using chips or tags and sensors, VeChain enabled products broadcast real-time information out to the blockchain network, which can be accessed by authorized stakeholders at any time. A system that is purpose-built to coincide with the smart contract associated with the product. This will ideally create better market transparency and quality communications, reducing counterfeiting and accommodating products that are designed for supply chain logistics.

VeChain uses a Proof-of-Authority algorithm, in which only approved accounts and known entities can validate transactions. These types of algorithms are common amongst somewhat centralized authorities, using threat of reputation to incentivize transaction integrity. 101 predetermined nodes are used to validate transactions and each is awarded VTHO according to the age and balance of the account.

What Makes VeChain Valuable?

Developmentally, VeChain is an incredibly reliable platform. They regularly meet deadlines, have a litany of impressive international backers, and a strong and deeply involved community. The platform is also beginning to tie itself to governmental programs, medicine manufacturers, and other high profile business structures. The more high profile businesses that align themselves with VeChain Thor technology, the higher the worth of VET tokens stands to become.

VeChain is exceptionally innovative when it comes to the development of dApps (Decentralized applications) used to solve real-world issues. These applications are created on the VeChain network and designed to address specific problems and needs as they arise. However, these tools can apply to a number of different business needs and niches, even if they were developed with one specific model in mind. These dApps include KYC and digital ID functions (VeVid), voting and governance structures (VeVOT), smart contracts (VeSCC), supply chain management solutions (Assetlink Manager), sports betting platforms (DBET), among others.

In order to use any of VeChains dApps, one would have to associate themselves with the VeChain platform, and require VET if not VTHO, promoting the increasing value and continued adoration of the coin and the platform itself. As more and more widespread and necessary dApps are created, one can assume that more entities will require access to the platform and its tokens, which may drive up and help stabilize prices.