VeChain is a fast-growing project that will power many businesses, software, institutions, and blockchain communities through the VeChainThor blockchain and Foundation.
The project has been around since 2015 and has overseen the launch of several projects under its blockchain, including the Canadian Micromation SaaS platform, Truestoryteller, among others.
This review is a VeChain analysis that explains the key features and products of the VeChain ecosystem, the two VeChain crypto tokens, and how to conduct a seamless VeChain swap for other tokens.
VeChain Review: Key Features of The Project
VeChain is a public blockchain platform established for business and institutional adoption. It is gradually disrupting the blockchain industry and giving Ethereum and other big smart contract players a huge rivalry.
How is this possible? Here are some of the project’s unmatched features and products.
VeChain Proof-of-Authority 2.0
In February 2020, two innovators at VeChain — Dr. Peter Zhou and a senior blockchain researcher, Dr. Zhijie Ren — published a preprint titled: “SURFACE: A Practical Blockchain Consensus Algorithm for Real-World Networks,” in what became the VeChain Proof-of-Authority 2.0 (aka PoA 2.0-SURFACE).
The PoA consensus algorithm is a protocol used in validating blockchain transactions. Unlike the Proof-of-Stake (PoS), which requires you to contribute to transaction validations using money, the PoA requires you to stake your reputation.
In PoA, you must undergo strict vetting before being granted access to validatory nodes. The vetting implies you put your identity and resources in line. Many validators in the PoA consensus algorithm are big blockchain research institutions, businesses, and top blockchain community contributors.
VeChain wants to upgrade to PoA 2.0 to address some PoA 1.0 consensus algorithm vulnerabilities. The VeChain Proof-of-Authority 2.0 will provide improved data security and trustless blockchain protocol.
$VET vs. $VTHO
Although VeChain introduced a stablecoin called the VeUSD applicable on Web3 and DeFi protocols, $VET and $VTHO are the two unique VeChain crypto coins native to the platform.
$VET (VeChain Token) is its utility token powering the project’s ecosystem. The token is available to the public for investing and can be integrated as payment systems for businesses that will use VeChain’s products and smart contracts.
$VTHO (VeChainThor token) is an energy token peculiar and functional only to the VeChain blockchain. It will be used as gas by the Authority Masternode Operators on VeChainThor for PoA consensus validations.
When $VET investors or holders spend or trade the coin on DEX or DeFi protocols, the $VTHO will be used at the backend node to verify the transaction. In such situations, 70% $VTHO is burned, and the rest goes to the Authority Masternode Operator that validates the transaction.
VeChain ToolChain
In the era of software development kits (SDK), VeChain built a tool to enable easy and fast smart contract integrations. As such, businesses do not need to know much about blockchain to adopt the technology. With a simple click, institutions and businesses can create blockchain apps and integrations on their platforms using the VeChain ToolChain.
Real-world Partnerships
Many do not understand blockchain technology or its use cases. However, VeChain is working to make blockchain easily accessible to these businesses. Hence, building a strong atmosphere of partnerships between traditional businesses and the decentralized finance (DeFi) industry.
F.A.Q. About VeChain
There are endless assumptions and misconceptions about the VeChain project ranging from VeChain mining to VeChain staking. This FAQ section will further provide answers to common questions while providing insight in our already detailed VeChain analysis.
- What Is the Total Supply of VeChain?
There is a total supply of 86.71 billion VeChain tokens ($VET), with only 64.32 billion in circulation. On the other hand, the $VTHO token has a total supply of 45.63 billion and has the same number of coins in circulation.
- Is VeChain a Stablecoin?
VeChain now has a stablecoin called the $VeUSD. The coin was launched at the end of Q1 2022 but is yet to make an Initial Exchange Offering (IEO) at the time of writing.
- Is VeChain a ERC-20 Token?
$VET is not an ERC20 token. However, to enable mass adoption, VeChain launched the $VEN token, an ERC20 token, convertible to $VET in an Ethereum-supported bridge or by using the VeChainThor mobile wallet.
- Can You Stake VeChain?
VeChain uses a PoA consensus mechanism to validate transactions. In the VeChain Proof of Authority 2.0, validators are vetted and chosen based on reputation and what they can offer to the network instead of just funds like the Proof of Stake protocol. Therefore VeChain staking is technically not possible.
- Can You Mine VeChain?
While many enthusiasts are interested in VeChain mining, it’s noteworthy that it is impossible to mine VeChain crypto tokens.
- Who Is Sunny Lu at VeChain?
Sunny Lu is the CEO and founder of VeChain. He is also a member of the board of directors at VeChain.
Competitors:
VeChain vs. Chainlink
Chainlink is one of the industry-leaders in powering hybrid smart contract dApps and integrating blockchain oracles in DeFi protocols.
On the other hand, using the VeChain ToolChain product, VeChain is working circumspectly to outpace not just Chainlink, but other major competitors. So far DeFi on VeChain is seamless and easy to operate for businesses and enterprises.
VeChain vs. HBAR
As one of the major VeChain competitors, $HBAR is both energy-efficient and can be used as smart money by investors and enthusiasts on the Hedera network. However, VeChain has separate tokens, $VET and $VTHO; the former can be used as smart money, while the latter is energy-efficient.
Morpheus vs. VeChain
Morpheus Network and VeChain both have an eye for automation and plan to use their respective tokens ($MNW and $VET/$VTH) to power their visions.
The Morpheus Network is notable for automating and integrating events in the real world as Ethereum-based smart contracts. VeChain, on the other hand, looks to integrate and automate blockchain-based services into traditional businesses and institutions.
Now, as you know much about VeChain, $VET and $VTHO, read further to learn how to get these cryptocurrencies.
