VeChain is the name of a supply chain-focused blockchain platform founded in 2015 by Sunny Lu, former chief information officer (CIO) of Louis Vuitton China, and Jay Zhang.
Powered by the VeChainThor blockchain, VET coin is the VeChain ecosystem’s native coin or cryptocurrency. VET initially existed as the ERC-20 VEN token on Ethereum, and the VEN to VET swap was done in 2018 when the platform transitioned to its own public blockchain network.
VeChain’s mission is to make supply chain management and the tracking of other business processes more transparent and efficient using blockchain technology. With support for smart contracts, VeChain also intends to facilitate the creation of decentralized applications (DApps) along with IoT integrations.
Some of the key areas in which VeChain aims to excel are the improved traceability and anti-counterfeiting of luxury items.
The network actually relies on two native cryptocurrencies, VET coin, which is used to vote on changes to the protocol, and VTHO, or VeChainThor Energy, used for transactions on the blockchain.
According to our VET USD live price chart, VET coin saw a significant price increase in 2020 when it went from almost $0.009 to $0.022 between June. 24 to July. 8, registering a 150%+ increase in just 14 days. VET price then went on to set an all-time high of over $0.023 on Aug. 9, 2020.
However, VET coin price in USD terms saw the most success in 2021, where it started at just above $0.02 on Jan. 1 before going to $0.06 by Feb. 12 — a gain of over 200%.
The price of VET coin continued this upward trend for the next few months, with another major spike coming in April when the VeChain cryptocurrency hit a new all-time high, going from around $0.04 on Feb. 28, 2021, to nearly $0.28 on April. 17, 2021 — a price surge of more than 670%. This high put VET’s fully diluted valuation at around $24 billion.
However, the price of VET cryptocurrency subsequently dropped and it traded as low as $0.04 in Q1, 2022.
How VET works
The VeChain platform operates on the VechainThor blockchain, a blockchain intended to provide businesses with better security, scalability, and most importantly affordability. It has two tokens, VET and VTHO. VET is used for voting on network protocols alongside storing and transferring value. VTHO, on the other hand, serves as gas used to confirm transactions on the blockchain, much like Ether on the Ethereum network.
The VeChainThor blockchain uses the proof-of-authority (PoA) consensus protocol. Users who are responsible for validating and adding new blocks on the blockchain are known as master nodes. To run master nodes, users are asked to stake 25 million VET and undergo a complete KYC/identity disclosure process.
While the way VeChainThor works allows for faster processing of transactions, it does end up receiving criticism on account of lack of decentralization.
VET news, updates, and highlights
In January 2018, Vechain announced that DNV GL, a Norwegian audit company, would be providing its customers with VeChain’s blockchain services. They also announced the development of “My Story” in collaboration with VeChain, a blockchain-powered assurance solution, allowing brands to share enhanced tracking information with customers.
On June. 25, 2019, the VeChain Foundation announced that Walmart China, with the help of the VeChainThor blockchain, will launch the Walmart China Blockchain Traceability Platform. The platform aims to ensure that customers can confidently purchase products with the knowledge that they are authentic and safe.
On Nov. 16, 2021, VeChain announced its upgrade to PoA (proof-of-authority) 2.0 consensus mechanism, with the goal to improve the network’s security alongside making block verification more environmentally friendly.
Frequently asked questions about VET
Can you mine or stake VET coin?
While you cannot mine VET because it uses PoA consensus, you can stake your VET tokens to earn VTHO tokens which are distributed on a monthly basis. Remember VeChain uses a two-token model.
What are some of the best VET wallets?
Since VeChain has its own native blockchain, it is not supported by most wallets. However, VeChain offers wallets for both iOS and Android users. You can also use Atomic wallet for desktop and mobile, whereas the Ledger Nano S is a compatible hard wallet that supports VET.
What can you do with VET?
VET tokens can be used for staking which grants users the power to vote on network upgrades and earn VTHO tokens in return for every block.
How to buy VET coin?
VeChain (VET) tokens can be bought by exchanging them for BTC, ETH, and USDT on exchanges like HitBTC and MEXC Global. You can also use fiat currency to buy VET tokens on exchanges like Changelly.