What is VeChain? Built on top of the VeChainThor public blockchain, the VeChain VET VTHO ecosystem is one of the premier enterprise-focused platforms that aims to solve real world economic problems and create value with the blockchain technology.
I always wince a little when someone describes VeChainThor as a “supply chain platform”. We’re a smart-contract platform. Supply chain is one use case out of many, others include dApps, NFT, data notarization, and fungible token issuance.Jason Rockwood, GM North America
- Economic Model
- Proof of Authority
- Where To Buy
- Featured Customers of ToolChain
- Steering Committee
- Advisory Board
- VeChain Resources
- Executive Reports
VeChain VET VTHO Economic Model
VeChain uses a bi-token system (VET) and VeThor (VTHO) with 101 Authority Masternodes to secure the system. Making up the consensus of VeChainThor.
- VeChain has a dual token model to ensure volatility in cryptocurrency prices ($VET) does not affect Supply Chain Management operations or mass adoption. Given that unpredictability has been a barrier to adoption.
- The entire purpose of the twin-token economic design is to stabilize the cost associated with transactions of payments, or executing smart contracts, on the VeChainThor blockchain. By the nature of the solution, transaction fees will be significantly lower than existing public blockchains, such as Ethereum, but the expected amount of transactions will be much higher.
- VeChain Token (VET) is the “Smart Money” which is programmable and executable in smart contracts to carry out value transfers along with commercial activities running on the platform.
- Multi-party payment protocol (MPP): Basically, MPP says that transaction fee can be paid by someone other than who sends the transaction if certain conditions meet. In this way, users can interact with VeChainThor even with a zero balance.
- The function of VET is to serve as value-transfer medium or smart money to build complex apps.
- Total supply of VET Coins: 86,712,634,466.
- VeChainThor Energy (VTHO) for carrying the value transfers and executing transactions on the VeChainThor platform.
- VTHO is generated through holding VeChain Tokens (VET) with an established emissions rate called velocity.
- Velocity is determined to enable any user with VeChain Tokens (VET) to make transactions at no extra cost if the user holds the tokens for long enough.
- Detaching the direct cost of using VeChainThor from the VET price.
- The price of VeThor will depend on the market. It won’t have ratio pegged to VET.
- 0.00000005VTHO is generated per VET per block. 70% of the transaction fee (VTHO) in each block is burned, while the rest is awarded to the Authority Masternodes.
- The generation speed of VTHO is 0.000432 per VET per Day
- If you had 10K VET, you would be given at most 4.32 VTHO every 24 hours.
- VeChainThor allows the transaction-level proof of work and converts the proved work into extra gas price that will be used by the system to generate more reward to the block generator that includes the transaction. In other words, users can utilize their local computational power to make their transactions more likely to be included in a new block.
- VTHO represents the underlying cost of using VeChain and will be consumed after the required blockchain operations are performed.
- The amount of VTHO that has to be paid depends on the amount of data that is sent, a simple VET transfer costs 21 VTHO, while adding an advanced smart contract can cost thousands of VTHO.
- Adjustment to variables (e.g. gas price, velocity) can be made to maintain the equilibrium of VTHO demand and supply. Continuously monitor over the VTHO supply vs. demand and adjust blockchain parameters to stabilize the transaction cost translated in fiat.
- When VeChain launched their token ICO, they allocated 23% of the total supply (19,943,905,927.18) to enterprise investors who are, at minimum, committed to using the VET purchased as a key element in their business activities and network. Read financial reports for current information. They plan to gradually sell out this pool as they identify strategic partners.
- Besides Clauses, VeChainThor’s transaction model includes fields
Expirationto allow us to further empower a transaction. Let us first revisit these fields as follows
- Intrinsic gas = txGas + clauses.type + dataGas
- Total supply of VTHO Tokens: Infinite.
- VeChain has in-house development of RFID chips and IoT sensors; used for cold chain, medication, food, etc.
- Sensors such as temperature/humidity/barometric pressure, and inertial sensors. Such as accelerometer/gyroscope/compass, gas sensors, and GPS/Glonass/Beidou positioning sensors.
- VeChain is highly scalable and can handle up to 10,000 tx/sec.
- VeChain is based on a fork of the Ethereum Blockchain.
- In contrary to Ethereum, VeChainThor users can easily assemble multiple transactions sent from the same account with different IDs, which means that they could be sent off at the same time and would be processed by VeChainThor independently.
- There are six smart contracts deployed in VeChainThor’s genesis block.
- Authority Masternodes are the only full nodes on the VeChainThor blockchain that are authorized to validate and produce blocks.
- VeChain is not the only supply chain platform, but their partnerships are one thing that set them apart.
- CEO Sunny Lu, said “Moon is not the finishing line and I like Mars better, lol.” when asked what we the people, who believe in the project, can expect from VeChain in the near future (2/3/5) years.
Proof of Authority (PoA)
PoA 2.0 coming in the future; updated 7/11/21.
- VeChain is the most notable platform that has adopted the Proof of Authority (PoA) consensus protocol. This is instead of PoW (Proof-of-Work) or PoS (Proof-of-Stake).
- In Proof of Authority (PoA) based networks, transactions and blocks are validated by approved accounts, known as validators; authorized by the steering committee of the VeChain Foundation.
- PoA leverages trusted validators to dramatically increase the blockchain efficiency resulting in much greater scalability and lower transaction fees in addition to maintaining a secure chain.
- Authority Masternodes are held mostly by enterprise users, blockchain developers, infrastructure service providers and institutional investors by staking VETs and contributing to the ecosystem.
- In fact, To be an Authority Masternode (AM), the individual or entity voluntarily discloses who they are (identity and reputation by extension) to the VeChain Foundation in exchange for the right to validate and produce blocks. It is their identities and reputations placed at stake that give all the AMs additional incentives to behave and keep the network secure. In VeChainThor, each AM has to go through a strict know-your-customer (KYC) procedure and satisfy the minimum requirements set by the Foundation.
- VeChainThor schedules a new block to be generated once every “x” seconds. They set “x” at 10 which is based on their estimation of the usage of VeChainThor. While the concrete timestamp interval depends on the specific situation.
VeChain Best Wallets
- List of best VeChain wallets to store your cryptocurrency, cold or hot.
Where To Buy
- Full list of exchanges to buy VeChain $VET/$VTHO in the USA and other parts of the world.
Featured Customers of VeChain ToolChain™
- DNV: one of the world’s largest risk management and quality assurance companies. DNV’s Approval of Manufacturers (AoM) confirms that a company has been found in compliance with international standards, regulations and DNV standards.
- PwC (PricewaterhouseCoopers): One of the Big Four auditors, along with Deloitte, EY, and KPMG and is among the largest professional services firm in the world.
- Bayer AG selected VeChain as tech provider for CSecure, the new blockchain-powered solution that will allow it to track clinical drugs along the entire supply chain.
- Walmart China, PwC China and VeChain jointly announced the establishment of the Walmart China Blockchain Traceability Platform, On June 25th, 2019. Fast forward to June 2020, VeChain announced Sam’s Club China, owned by Walmart China, will be rolling out Sam’s Club Blockchain Traceability Platform.
- Business Owners: User base of the platform
- Application Service Provider or Smart Contract Providers: Build the necessary applications and services on the platform.
- Infrastructure Service Providers: entities who run full nodes
- VeChain Foundation and Community: for development and maintaining VET
The team behind VeChain is comprised of respected individuals with experience and knowledge from multiple industries. C-Level below.
- CEO: Sunny Lu
- Sunny was graduated from Shanghai Jiao Tong University, majoring in Electronics and Communication Engineering. He has served as IT Executive in Fortune 500 companies for over 13 years and as CIO of LV China. He started the VeChain project in 2015.
- CFO: Jay Zhang
- Jay has worked for PwC and Deloitte as senior manager for over 14 years. He joined VeChain in 2015 as leader of the Blockchain governance framework design and digital assets management framework establishment.
- COO: Kevin Feng
- Kevin Feng has over 12 years’ experience in consulting and assurance services in cybersecurity, privacy and emerging technology at PwC. Additionally, Kevin has been driving the development of blockchain services of the PwC CN/HK region. Kevin joined VeChain as COO in January 2018.
- CTO: Jianliang Gu
- Jianliang was graduated from Shanghai University with a master’s degree in Cybernetics. He has worked at TCL communication technology as Technical Director. He has more than 16 years of experience in both hardware and software of embedded systems development and management.
As of 9/30/2021
A well governed foundation is the key to longevity, growth and stability. Making an actionable governance system, that matches the identity we envision for the VeChain ecosystem. At the core of its governance structure, VeChain Steering Committee, as the elected governing body, oversees various functional committees and represents the balanced interests of the VeChainThor blockchain stakeholders as a whole.
A combination of corporate and community governance to balance decentralization and efficiency Community elected Steering Committee, partially independent from the VeChain team, to facilitate the decision making and execution *Role-based voting reduces the uncertainty in the platform’s technical and organizational development. On-chain governance mechanism which is divided into three phases – propose, approve, and execute, is designed to support the governance model.
As of 9/30/2021
VeChain has sought out a promising Advisory Board to be the backbone that the Foundation can lean on to provide immense wisdom and experience in the design, implementation, and vision of VeChain.
- Jim Breyer: Founder and CEO of Breyer Capital
- Cy Cheung: PwC Cybersecurity and Fintech Partner
- James Gong: Founder of Longhash and CEO of chainb.com
- Masanari Koike: Visiting Fellow of the Tsinghua University, Former Member of House of Representatives of Japan
- Ning Nan: Co-Founder and CEO of OceanEx
- Bo Shen: Founding Partner of gf.network and Fenbushi Capital
- Roland Sun: General Counsel of gf.network, Partner at Broad&Bright, General Counsel of Fenbushi Capital