What is Vet Coin? VeChain Explained

VET is one of the many tokens that are popular right now, mainly because of its unique features and its convenience. VET is a coin that runs on the VeChain platform. Perhaps you haven’t heard of this cryptocurrency yet, and that may be because there are too many altcoins at the moment, with even more emerging in the future.

It can be confusing to keep track of all of them, and VET is not a coin you see frequently. However, it is unique, which is why people love it so much. What is Vet Coin and how do you mine it and invest in it? You will find the answers below.

What Is a VET Coin?

VET coin is the token run by the VeChainThos platform. This coin is mainly used to transfer value across the network. At first, the token was operated on the Ethereum blockchain, but only until VeChain was successful in transitioning onto the VeChain one. In 2018, there was a rebrand where the VEN blockchain was turned into the VeChainThor blockchain, respectively VET as we know it today.

VeChain was founded in 2015. The founder of the company is the former chief information officer from Louis Vuitton China, Sunny Lu.

In the beginning, the blockchain was a Bitse subsidiary, with Bitse being one of the largest blockchain companies in China. Moreover, Bitse is also one of the few blockchains with a very large customer base among established firms.

VeChain’s Blockchain Platform

VeChain is a blockchain platform that focuses on logistics needs and supply chains. The VeChain token is run by the VeChainThor blockchain, which is the public blockchain behind VeChain. However, the blockchain also has another cryptocurrency, respectively the VeThor token or VTHO.

The main goals of the VeChain platform are to become leaders in initial coin offerings (ICOs) and dApps made using VeChain, but also to disrupt the supply chain industry by making transparent and actionable data.

Also, it wants to become an intermediary Internet of Things (IoT). The whitepaper of VeChain specifies that the mission of the platform is to “enable the blockchain community, business owners, enterprises, governments, or any other individual to move their business activities to blockchain effortlessly.”

In order to be able to reach its goals, VeChain made various strategic partnerships with multiple companies over the years. One of the agreements was for the blockchain-powered solutions of VeChain to be used by the client base of PricewaterhouseCoopers to help improve product traceability and verification.

Apart from that, the platform also had partnerships with Renault, and they ended up creating a digital car maintenance book in conjunction with Viseo and Microsoft.

VeChain Tokens

The blockchain platform of VeChain was meant for “mass business adoption.” As mentioned, it has two tokens, more specifically VET and VTHO.

The VET coin is the official VeChain token, which people use to carry value from smart contracts. So, any decentralized application transactions on the VeChain blockchain will be made using the VET token. The general public can easily use it for investing.

But when it comes to the VTHO token, this one stands for VeChainThor Energy. People use it to power VeChain transactions, and it is equal to the price of making transactions on its blockchain. Some people also call it VeThor Energy.

To be able to conduct transactions on decentralized applications, the developers need to have funds for a particular number of underlying tokens. This is similar to the NEO “gas” and Ethereum’s ether. According to VeChain, both token systems were made for effective governance.

At the moment, Ethereum doesn’t have a model like this. The reason is that the native gas token is quite volatile. So, developers have to estimate the ether amount necessary for a transaction. If the estimate is incorrect, then the transaction fails. On the other hand, VeChain found different solutions for this problem, respectively multiple technical enhancements.

One of the things that VET blockchain includes is Proof of Work, which needs to be done for each transaction. With this, if the initial estimate someone made was incorrect, they can mine more VTHO.

Special Features of VeChain

VeChain is different from other blockchains, mainly because it has some special features. For example, VeChain stands out when it comes to the use cases for tracking data and goods. It would come in handy for any business that needs a verified ownership chain through shipping, production, or other processes.

Users can use the VeChain smart contract features in order to track the ownership of goods and also control goods regardless of the number.

Apart from that, VeChainThor could be able to support new currencies, but also different smart contracts. The blockchain’s currencies meet the VIP180 standard that was made for VeChain uniquely.

So, VeChain uses a proof-of-authority strategy, which is different from the proof-of-work system that Ethereum and Bitcoin use. The VeChain strategy would then make the network efficient while not requiring the use of too much electricity.

Examples of How VeChain Can Be Used

VeChain’s features can be used by electronics manufacturers to track everything, from the production process to distribution. For example, the marijuana industry could use it considering it is regulated. They would be able to track plants, seeds, sellable products, as well as sales in order to meet the requirements. You can also track if a company needs to buy or sell it.

The pharmaceutical and food industries could also use VeChain. People could use it to find out if the product is brought from safe sources and whether it is stored through various facilities and owners. For things like open financial transactions or digital vehicle passports, VeChain could also be useful.

How to Mine VET Coin

It may be disappointing to find out that it is not possible to mine VET coins. It actually runs on a proof-of-authority. The network validators are the largest participants. So, there are fewer computers used in order to operate and validate the network.

Individuals with a great reputation may become validators by being elected by different network participants. It is not too different from proof-of-stake coins, where validators are picked by those who have the largest stake in the network.

How to Invest in VET Coin

You can buy VeChain from multiple exchanges and you have several wallet options. Crypto.com, Binance, and Bitfinex are three of the exchanges that support VeChain.

Keep in mind that in order to make VeChain transactions, you need a wallet that has enough currency to handle the transaction fees. Transactions could be anywhere between 25 cents and $7. On top of that, it is important to hold the VET coins in a secure wallet, so hackers will not get access to them.

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Final Thoughts

VeChain is a pretty unique blockchain, and while the token cannot be mined, you can buy it from several exchanges such as Binance or Crypto.com. If you are interested in this token, you will have to make sure you get a safe crypto wallet to keep the currency. This way, you will always have it secured and ready for use.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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