What is Vechain?
VeChain is a blockchain solution that allows businesses and customers to track their products throughout the supply chain. Let's look at an example to see what I mean.
Assume you're going to the supermarket to do some shopping and you've decided to get some chicken for dinner. You enjoy chicken, but how can you be certain that it is safe?
One option is to smell it. Right!! If it stinks, it's bad.
But what if you don't know anything about chicken?
To solve this problem Vechain creates a blockchain in which just by scanning a unique ID tag to the chicken pack, you can know whether your chicken has been handled in accordance with food safety standards or not.
An app will show you everything about your chicken. If your chicken is spoiled, the app will notify you and explain why it is unsafe to eat.
And the great thing about a blockchain environment is that it is tamper-proof; any information added to it cannot be changed, so consumers can be confident that the data and information they received about the product is correct.
How VeChain works?
In the VeChain ecosystem, there are three types of nodes, each with its own set of advantages.
These are the most important ones; we can refer to them as network maintainers. At any given time, each of them must hold at least 25,000,000 VET, and the owner of that master node has the ability to vote on important decisions and also validate transactions on the blockchain. As a result, they are granted THOR POWER.
Economic X nodes and Economic Nodes
They keep the economy stable and price fluctuations to a minimum. Each node holder must have a certain number of VETs and wait for the appropriate maturity period for his node type in order to receive the THOR POWER bonus.
VeChain is based on two cryptocurrencies that help to keep the system running.
The first is known as VET (VeChain Token). It is the primary token of Vechain and can be used to make smart payments, and this VET is open for the general public to invest in various crypto exchanges.
When VET is kept in a dedicated wallet, it will automatically generate interest in the form of a second coin known as a THOR POWER (VTHO) token. Consider it similar to the interest you receive on your bank account balance.
THOR POWER is the backbone or energy that keeps the entire VeChain system running. THOR POWER is spent every time someone wants to add information to the blockchain.
For example, if you have 100 VTHO and spent some of them to add some information to a block, 70% of that spent THOR POWER is removed from circulation, and the remaining 30% is awarded back to the people who have the most VET coins in their wallets also knows as Authority-master nodes.
VeChain has a governing body, which they call the steering committee of Vechain. They develop key strategies and oversee operations to ensure visibility, transparency, and efficiency. They are in charge of the VeChain ecosystem's development, coordination, and advancement.
They also plan voting events.
Assure the decision-making process
Examine, approve, and monitor business operations.
Keep track of the annual budget, financial status, and major transactions.
Maintain the VTOH operation model and the VET valuation model.
VeChain establishes a full-time financial management team to efficiently manage the organization's finances and economic resources in order to manage its financial status. This team reports directly to the Steering Committee. The primary functions are as follows:
The use of a wallet and the establishment of a limit on the amount stored in that wallet.
They continuously monitor the situation and supervise the use of their digital asset; if any anomalies are discovered, they can investigate further.
If an unprofessional scenario occurs, they can activate their emergency response plan for that event.
What problems Vechain is solving?
According to estimates, the world's most valuable luxury brand, Louis Vuitton, is also the most pirated luxury brand in the world, losing 4.6 billion dollars in sales and hundreds of millions more in maintaining its brand value, and this is just one example of the counterfeiting problem.
VeChain's solution enables brands to digitize their products on the blockchain by connecting physical products to virtual IDs via NFC tags. Traceability over the life cycle of products, including manufacturing, logistics, and supply chain from source to destination, is possible with its help, which can help us with the duplicity problem.
And this is just the tip of the iceberg; with the help of VeChain, a variety of issues can be resolved.
What are the benefits of Vechain?
With this technology, Vechain can halt the rampant rise of counterfeiting. If you know the origin as well as the entire history of a product, such as where it came from and how it came to you, it is quite difficult to counterfeit it, right?
In other words, by using VeChain's blockchain, businesses can optimize their supply chain, eliminate product duplication, and gain customer’s trust by providing a way to trace products.
Kuehne & Nagel- It is a global transportation and logistics firm headquartered in Schindellegi, Switzerland. It offers both sea freight and air freight. Kuehne & Nagel is an abbreviation for Kuehne & China used VeChain's blockchain technology to make its parcels and assets smarter, as well as to allow customers to track their parcels in real-time.
D.I.G. Direct Imported Goods (DIG) is a wine importer that handles more than 30% of China's wine imports. Using smart NFC, VeChain will be used to validate and trace winery data from producers through the supply chain.
PwC PriceWaterhouseCoopers (PWC) is one of the world's top four auditors, with clients such as IBM, Ford, Dell, Cisco, and approximately 400 other top companies. PwC will roll out VeChains' blockchain solutions to its large client base, allowing them to verify and trace the origins of their products.
These are some of them but it has spread its network among various other big and famous companies of the world.
What is the future of VeChain?
We've learned a lot about the VeChain System. Let us now discuss the problems it is capable of resolving in the coming years.
The VeChain food traceability program offers a comprehensive solution that can aid in the preservation of transparency and trust. Customers can obtain product details by scanning the tag on the desired product, including the source and ingredients of the product, its location, and temperature data, by scanning the tag on the desired product.
The issue of counterfeiting
VeChain's solution enables brands to digitize their products on the blockchain by connecting physical products to virtual IDs via NFC tags.
Is Vechain a good investment?
Before investing, we should consider the challenges that Vechain can address, including the following.
Minimizing or eliminating theft and mistakes.
Lowering the amount of time it takes to process documents
Improve inventory management.
In addition, the ability to spot problems more quickly
Minimizing the cost of delivery companies.
Consumer and business trust will increase.
And considering all these points I think it is a good investment for the long term.
The price of VeChain, when I am writing this blog is $0.11 and the current ranking is #22, with a market cap of $7 billion. It has a circulating supply of 64 billion VET coins and a maximum supply of 86 billion VET coins. Vechain where to buy? You can buy VET from various big exchanges of the world like Binance, Wazirx, Houbi Global, etc.
What do you think about VeChain?
Vechain was founded in 2015 by Sunny lu, got listed in 2018, and from then VeChain (VET) has done very well in the market. Talking about the VeChain Coin ranking, this coin has a rank of 22, which is an excellent position. The past few months were very good for VeChain it is rallied almost 40% from the month of August 2021, which shows that VeChain will be a smart investment in 2021. A lot of people ask that Is VeChain undervalued? I think it is. It may also be claimed that the coin has passed its all-time high point in such a case. Additionally, purchasing coins at such a high price can be a risky undertaking.
But as I always say do your own research about price prediction before investing. In general, if you want to invest for the long term, it's a good deal. But, if you only want to invest for the short term, then research enough before investing.