VeChain combines supply chain and blockchain technologies and offers cutting-edge solutions to real-world supply chain management problems.
Let us discuss what is VeChain, its digital token VET, and should you invest in VET in 2022.
VeChain (VET) – Introduction
VeChain is a cryptocurrency and smart blockchain platform that offers enterprise-based services to corporate clients.
It allows corporate clients to develop decentralized applications (DApps) enabling them to record data into the VeChain blockchain.
VeChain was founded by the co-founder and CEO Sunny Lu in 2015. The company has its global presence through various regional headquarters located in Singapore, France, and the US.
VeChain is built on its unique VeChain Thor blockchain technology. It is mainly focused on solving real-world economic problems such as supply chain efficiency for its corporate clients.
The company has focused on enabling businesses to connect their physical services with blockchain technology practically. It has successfully appealed to large enterprises around the world coming from different industries so far.
VeChain has issued a two-token system for its blockchain model, unlike its peers who usually operate with one. VET is used to transfer value between VeChain users and to create a second token VTHO.
VTHO is used to settle transaction fees and create smart contracts. The use of a two-token system enables greater efficiency and keeps the transaction costs separate from actual activities for users.
How Does VeChain Work?
VeChain is built on its flagship blockchain technology VeChain Thor which is used to attract mass adoption of the blockchain technology.
VeChain Thor is a public blockchain and a high-speed smart contract distributed ledger that enables hosting decentralized applications (DApps).
The VeChain platform uses a consensus algorithm Proof-of-Authority (POA). It then operates through Master node operators who ensure the security and integrity of the VeChain governance policy and transaction protocols.
VeChain offers its blockchain technology services through its flagship product VeChain Toolchain.
This technology enables them to offer valuable and unique services like:
- Blockchain-as-a-Service (Baas)
- Platform-as-a-Service (Paas)
- Software-as-a-Service (Saas)
The Vechain Tool Chain technology enables businesses to leverage powerful blockchain technology without building everything from scratch.
Businesses can harness the benefits of adding tracing sensors, creating a record of digital carbon footprint, and a risk-assessment system
VeChain uses a two-token system (VET and VTHO) that helps users differentiate between the cost of using the blockchain technology from market speculations.
VTHO token acts as a gas token that is used to make transaction fees and smart contracts. 70% of the VTHO paid in each transaction is destroyed and the VET governance model also ensures further cost stability for its users.
What is Unique About VeChain?
The success of any cryptocurrency or digital asset depends on the technology backing it. VET is backed by an efficient blockchain platform and its target market is a global corporate industry of supply chain.
Here are a few unique features of VeChain (VET).
Efficient Blockchain Platform
VeChain runs on the VeChain Thor blockchain which is its flagship technology. Thus, it does not rely on any other company to offer its services.
VeChain Thor is an efficient blockchain platform. It is built on proven technologies like Proof-of-Authority (POA), meta transactions, transaction fee delegation protocol, etc.
Solving Untouched Problems
VeChain is targeting the supply chain industry with its blockchain technology. It wants to solve untouched problems by blockchain technology so far.
VeChain is focusing on combining blockchain technology solutions for supply chain tracking and physical technologies in the sector.
Dual Token System
VeChain runs on a dual token system with VET and VTHO. This dual token system keeps the transaction costs and the overall operating costs of running smart contracts.
TX Fee Delegation
The TX Fee Delegation system enables users to use decentralized apps (DApps) without purchasing cryptocurrencies. The VeChain Thor has successfully implemented this TX fee delegation system.
The VeChain Thor technology runs on two protocols: Multi-Party Payment and the Gas Payer Protocol. The use of two protocols means its users do not need to worry about running or purchasing the crypto assets.
VET has also stepped into the NFT segment lately. It has minted the nodes as NFTs using the VIP-181 protocol through its protocol.
Is VeChain (VET) a Good Investment in 2022?
VeChain (VET) has shown good prospects in a short history since its inception in 2015. In the current year, VET has seen a dip in price which is largely due to the bearish trend in the crypto market.
Up until the year 2020, VET did not see a significant rise in its price. It couldn’t attract corporate investors or even large-scale retail trading as expected with any new digital asset.
The VET price tag remained around $ 0.020 in its early years with little trading volume.
In the last couple of years, VET showed some upwards trends. It touched an all-time high price tag of $ 0.28 in April 2021.
Like many other digital assets, VET has also seen a price dip currently. Its current price is $0.0303 as of the writing.
We can link this downwards trend with the declining price trends of all cryptocurrencies viz a bearish market trend though.
Since VET holds a strong basis for having a core technology, appealing to the corporate world, and solving real-world problems through its technology, we can predict a good future for it.
VET is likely to recover from the current price dip and will strengthen in the coming years. However, it is unlikely to touch the $1.0 mark anytime soon.
How to Buy VeChain (VET)?
VeChain VET is a freely traded digital token. You can buy it on all major cryptocurrency exchanges including Binance, Kucoin, Huobi, etc.
VOTH is also available on some major crypto exchanges. Both these tokens can be directly purchased from VeChain as well.
Why You Should Buy VeChain (VET)?
VET holds good prospects and can prove a good investment if you consider its fundamentals.
Here are a few compelling reasons why you should buy VET in 2022.
Partnering with Giants
VET banks on the strong commercial performance of VeChain. Its parent company has commercial partnerships with industry giants including PWC, DNV, and Walmart.
Appeals Corporate Sector
VeChain offers blockchain technology access to the corporate sector in the supply chain industry. It is a gigantic industry with immense potential for technological advancement through the implementation of blockchain technology.
Target Market is Huge
Supply chain tracking can be implemented across several other industries as well. Using VeChain Thor, companies can assign unique IDs to products and services that can be tracked as they move.
It means VeChain is targeting a huge customer market. Thus, the VET is likely to perform well over the years.
Built on Efficient Blockchain Technology
VET and VTHO are built on an efficient VeChain Thor blockchain technology. The two-token system also reduces the costs of using blockchain technology for its users.
Thus, both these tokens can attract new customers in the coming years and are likely to perform well.
Why You Should Not Buy VeChain (VET)?
Despite numerous advantages, VET also comes with some limitations.
Crypto Market Volatility
As with any other crypto asset, VET is also prone to market volatility and uncertainty. It can make it difficult for large corporate investors to invest in a volatile digital asset.
Like other crypto assets, VET can also face legal complications although it has survived any legal consequences thus far.
VET and other major cryptocurrencies are yet to see real global acceptance as fiat currencies or financial assets.