What is VeChain (VET)?
VeChain project founded in June 2015 by CEO Sunny Lu (ex-CIO of Louis Vuitton China), focusing on building a trust-free and distributed business ecosystem to enable transparent information flow, efficient collaboration, and high-speed value transfer. Specializing in blockchain and IoT technologies, VeChain has become one of the few blockchain platforms with real-world business applications adopted by reputable enterprises across multiple sectors worldwide. By providing robust and secure blockchain infrastructure, enterprise solutions, turnkey packages, and development tools in both software and hardware, the platform aims to enable its business partners and developers to adopt blockchain solutions for business and create a powerful and sustainable ecosystem.
The firm is designed to be used across a number of industries such as automotive, pharmacy or agriculture. The objective of VeChain is to make the supply chain more efficient, transparent and cost-effective by using blockchain technologies. With VeChain different companies along the supply chain can track items through every stage, in real-time, and verify the information. This happens via VeChain Identity Technology (VID) which provides a physical way to track a product.
VeChain currently operates out of 7 offices located in Shanghai, Singapore, Paris, Luxembourg, Palo Alto, Tokyo, and Hong Kong. It actively works with top-notch universities worldwide in its blockchain R&D capacities, such as Tsinghua University, Stanford University, MIT, Oxford Mathematical Institute, Dartmouth College, City University of Hong Kong and South China Normal University. Additionally, VeChain is one of the leading firms globally in terms of blockchain-related patents.
It has announced various corporate partnerships with companies such as PwC, Renault and Microsoft. As of early 2018, VEN token was among the 30 cryptocurrencies with the highest market capitalization.
The differences between VeChain and Bitcoin
|Specifications||Vechain (VET)||Bitcoin (BTC)|
|Coin limit||86,712,634,466 VET||$21 million|
|Market Cap Rank||31||1|
|Creator||Sunny Lu and Jay Zhang||Satoshi Nakamoto|
$0.019775 USD (Sep 04, 2018)
|$20,089.00 USD (Dec 17, 2017)|
$0.002934 USD (Oct 24, 2019)
|$65.53 USD (Jul 05, 2013)|
- Public blockchain: anyone can read, write and deploy decentralized applications and smart contracts onto the VeChainThor blockchain.
- In-house IoT and supply chain management technology: proven blockchain implementation experiences in industries such as luxury goods, liquor, and agriculture.
- Native Fee Delegation: the blockchain supports the implementation of native fee delegation, which means dApp users do not need to hold VET or VTHO to write transactions if associated gas costs are specified by the developers to be sponsored.
The heart of Vechain is 101 Authority nodes that process transactions and govern the network via a voting mechanism. Authority nodes are owned by large enterprises and trusted individuals to ensure decentralized trust.
Vechain network uses a two token system Vechain Thor (VET) is the main token system and VeThor Token (VTHO) improves network economics.
- VechainThor (VET) serves as a reserve for economic staking and value transfer on the platform. VET can be “staked” in various economic nodes and generate VTHO which powers transactions on the network.
- VeThor Token (VTHO) is the “gas” required to perform transactions and interact with smart contracts. Each time a transaction is made, VTHO is consumed and destroyed.
Sunny Lu (Co-Founder Chief Executive Officer) was graduated from Shanghai Jiao Tong University with a major in Electronics and Communication Engineering. He has over 15 years’ experience as an IT executive in Fortune 500 companies and was the former CIO of Louis Vuitton Greater China. In addition to his strong technical background in computer science and network communication, Sunny has extensive experience in IT strategy and management, enterprise digital transformation and innovation. Sunny co-founded the VeChain project in 2015.
Jay Zhang (Co-Founder Chief Financial Officer) had worked for PwC China and Deloitte UK as a senior manager in finance and risk management for 15 years before he co-founded VeChain in 2015. Jay is in charge of VeChain’s global corporate structure, governance, and financial management.
- Kevin Feng (Partner Chief Operating Officer) had 13 years’ experience of consulting and assurance in cybersecurity, privacy and emerging technology at PwC China and US. Kevin is in charge of the general operation, information security and privacy protection in VeChain.
- Jianliang Gu (Partner Chief Technology Officer) had over 16 years’ experience in both hardware and software embedded system development and IT management. He has been in charge of technology development, focusing on the development of enterprise blockchain solutions with the combination of blockchain and IoT technologies.
- Dr. Peter Zhou (Partner Chief Scientist) has 10 years’ experience in computer science research and development and published his research results in international leading academic journals and conferences.
VeChain is one of the most established blockchain companies in the industry. Not only do they have clients using a functional product, but they also have a team with extensive experience in the industry they’re targeting.
Having partnerships with giants like PwC and the Chinese government, they should have no problem growing their clientele. If VeChain continues at their current pace, it wouldn’t be a surprise to see VET as one of the top performers over the next five to ten years.