VeChain is a blockchain platform that aims to enhance supply chain management and business processes around the world. Established in 2015, VeChain is a company that leverages the power of its public blockchain VeChainThor to provide distributed ledger-based solutions for firms.
The blockchain aims to empower its individual members while committing to providing a stable and predictable transaction cost for users to facilitate a better financial service.
What is VeChain?
VeChain aims to build a trust-free and distributed business ecosystem that allows for transparent information flow, efficient collaboration and high-speed value transfers.
VeChain was created as part of a Chinese-based blockchain-as-a-service company, BitSE. The blockchain platform is designed to be used by both small firms and large enterprises.
Founded in Singapore, the VeChain Foundation oversees the development, governance and advancement of the blockchain’s ecosystem.
According to the official VeChain whitepaper, real-world business applications that exist on the public blockchain have been tested and discussed with over 700 enterprises and implemented for over 100 fortune-level enterprises.
What are VeChain tokens used for?
The enterprise blockchain platform has two types of tokens, including the VeChain token (VET) as a value layer, and VeChain Thor Energy (VTHO) as its smart contract layer.
The VeChain token is used for financial transactions that occur on the public blockchain and acts as a crypto asset that can be traded on the open market.
Are VeChain and VeThor the same? VET vs. VeThor
The VeThor token is known as the “energy token” that is used to conduct transactions on the VeChainThor blockchain. Holders of the VET token can generate VTHO for use on the public blockchain.
VTHO is used to pay for writing data on the blockchain, where every transaction, including sending tokens or sending data to a smart contract requires payment in the VeThor token.
The amount of VTHO needed for a transaction depends on the size of the data being sent.
Both VET and VTHO tokens are essential for the VeChain ecosystem, which helps to separate the cost of using the blockchain from market speculation. The VeChain Foundation’s governance mechanism stabilizes the cost of transactions, and VTHO supply and demand are constantly monitored.
Since VET generates VTHO tokens, users who hold the VeChain token will earn VTHO, which could then be used to pay for transactions. Each VET will create 0.00000005 VTHO with every block that is generated, translating to a generation rate of 0.000432 VeThor each day.
Transaction fees on the VeChain blockchain remain relatively stable, compared to a system like Ethereum, which only has one coin.
What are VeChain clauses?
The clauses on the VeChain blockchain are a part of the transaction model. Each transaction on the VeChainThor blockchain contains a ChainTag, BlockRef, clauses, gas, gas price coefficient, TxNonce, expiration, DependsOn, reserved and signature.
While every transaction can contain multiple clauses, each clause contains “to,” “value” and “data” as fields that are used to kickstart different tasks, including payment or smart contracts. This allows the sender to use a single transaction to carry multiple tasks.
Clauses can contain any number of transactions bundled together. A specific address on the VeChain blockchain receiving the majority of clauses reportedly belongs to Walmart.
Who uses VeChain?
Walmart has been using VeChain’s technology for food tracking purposes. The company initially only used the blockchain to account for mushrooms sold by the retailer.
The Chinese arm of the American retailer announced in 2019 that it had teamed up with VeChain and PwC to launch a blockchain-based platform aimed to address food safety concerns in the country.
According to the official press release, VeChain is providing…
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