What Is VeChain (VET) Cryptocurrency and How Does It Work

What is the VeChain (VET) token?

Vechain is a cryptocurrency system dedicated to supplying blockchain and logistics needs. VeChain software works as part of the VeChainThor blockchain platform designed to improve real-world supply chain management and business processes. This real-world utility gives it an intrinsic value outside market fluctuation.

The primary goal of VeChain is to make these processes and information flow more efficient for multifaceted supply chains through the procedure of Distributed Ledger Technology (DLT).

The public blockchain includes both the VeChain token (VET) and the VeThor token (VTHO), where the former is used to convey value across the system, and the latter is used as energy to influence smart contract trades.

This one-of-a-kind, two-token system substantially assists in the separation of blockchain usage costs and cryptocurrency market speculation.

David Hamilton of Securities.io explains it like this in his article, Investing in VeChain (VET) – Everything You Need to Know:

“VeChain (VET) was one of the first blockchains built exclusively to cater to the needs of enterprise-level clientele. The developers behind the project seek to improve supply chain and product lifecycle management through the use of distributed ledger technology (DLT). Importantly, the platform offers users a variety of new functionalities that make it ideal for businesses seeking to enhance supply chain protocols and business processes.”

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Keep in mind these are opinions and speculations only. These are not financial advice or recommendations.

VeChain Internet of Things (IoT) principles

VEChain blockchain expects to be an IoT intermediary. By using the smart contract features of VeChain, users can track possession and control quantities of merchandise.

Similarly, crypto usage has enabled companies to track goods and services by embedding the unique ID in a QR code on the said goods. Several companies related to quality assurance have started adopting blockchain-driven solutions due to ease of use and expenditure.

What is a QR code?

“Short for Quick Response, QR codes are a type of barcode easily readable with digital devices like smartphones. They store information as a series of pixels in a square grid that can be read in two directions — top to bottom and right to left — unlike standard barcodes that can only be read top to bottom.”—Business Insider.

Blockchain technology is amongst the leading cryptosystems used for specific purposes by organizations worldwide. VeChain has improved product traceability and verification through the use of QR codes.

Merging IoT & Distributed Ledger Technology (DLT)

The VeChain network has significantly demonstrated a meaningful alteration in the worldwide economy due to the combination of DLT and IoT aspects. For example, developers have employed DLT to enhance product life-cycle management and supply chain protocols.

Additionally, it offers companies an opportunity to trace a large quantity of data. Furthermore, the merging of DLT and IoT has enabled companies to blend centralization with decentralization, thereby providing users with high-quality speed transfer, flow, transparent flow information, and efficient collaboration.

Additionally, merging the IoT and DLT has helped make a sizeable influence on the supply chain industry. The adoption of both technologies has comprised all smart devices and networks used worldwide. In a nutshell, DLT and IoT enable large quantities of data from one user to another.

Many compare VeChainThor technology to software as a service (SAAS).

VeChain technology provides transparency through traceability

According to an August ’21 article by CISION, VeChain Is Targeting The Multi-billion Dollar Chinese Pet Food Traceability Market Using Industry Leading Blockchain Technology, the blockchain technology has enabled pet food manufacturers to resolve their biosecurity issues and quickly bring the health concern under safety control through truthful traceability of the constituents.

“…able to provide proof of pet food ingredient claims by telling a brand's story in a trestles manner that is unable to be replicated by any other solution in the market."—The Motley Fool.

Furthermore, the blockchain offers transparency and has demonstrated the evidence of the pet food ingredients, which other market solutions cannot imitate.

Likewise, VeChain offers collectors a method to verify their items, such as NFTs, sports cards, etc.

The QR code enables companies to prove the origin and validate the product’s ingredients; as a result, it increases the efficiency of a business’s internal distribution chain, but it also prevents possible damage to the organization's status during recalls, as increased data traceability allows the company and relevant authorities to track the problematic quantity of products, which increases consumer trust.

VeChain Token (VET) Market Data

“The live VeChain price today is $0.054031 USD with a 24-hour trading volume of $174,868,846 USD. We update our VET to USD price in real-time. VeChain is up 5.38% in the last 24 hours. The current CoinMarketCap ranking is #37, with a live market cap of $3,475,042,809 USD. It has a circulating supply of 64,315,576,989 VET coins and a max. supply of 86,712,634,466 VET coins.”—CoinMarketCap.

So far, VET’s all-time high (ATH) was $.2546 on 18 April 21. If you own VET, it would be wise to HODL, as it is a long-term prospect at best.

However, you can stake your VET tokens on Binance for 3.47% annual percentage yield (APY)—way better than a bank. Be careful with that and know your exit strategy. If you’re going to stake any coin or token, make sure you know how much you will pay in fees and how long the coins will be locked because you can’t sell or swap them during that timeframe. Of course, with a long-term project like VET and VTHO, that might be best.

Final thoughts and considerations for VET

VET and VTHO are two tokens to keep an eye on when BTC makes an upward move. At this point, I would recommend standing firm until after the POTUS does whatever he is going to do this month. A total ban could mean price DRAMATIC drops across the cryptocurrency spectrum. Though most experts don’t expect that, anything is possible—particularly since cryptocurrency is taking over many of the functions banks normally do for much larger fees and longer waiting periods. Plus, they all claim crypto facilitates money laundering.

“One of the most popular cryptocurrencies many investors haven't heard of, VeChain (CRYPTO:VET) had quietly worked its way to a top-25 spot in the crypto world as of early November. However, since hitting its all-time high in April of this year, VET has lost approximately 40% of its value.”—The Motley Fool.

Plus, it makes a lot of sense to wait and see what Biden’s EO will look like. Some regulations could help the crypto market, whereas too much regulation or an all-out ban would create chaos, at least for a while. Most believe it will eventually recover because cryptocurrency is a worldwide phenomenon. However, most crypto whales fall under US tax laws, at least in theory.

DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser and anything I propose should be considered friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.

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Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.

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