VeChain (VET)

Discover the basics of VeChain and find links to beginner-friendly guides that show you the best way to invest in it.
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Updated: Oct 4, 2022

About VeChain

What is VeChain?

VeChain is a blockchain platform that provides solutions for businesses and data management. Formed by the former CIO of Louis Vuitton China, it offers businesses more modern answers to supply chain problems. The VET coin is the token that powers VeChain, where it is used for peer-to-peer transactions.

VeChain differs from many other cryptocurrencies because the platform is aimed toward real-world product management. VeChain has already been utilised in supply chains, where it can assign trackers to products and let businesses track, verify and authenticate goods as they move around.

How does VeChain work?

VeChain is used for supply chain management and as a way of tracking ownership. Each product is given a unique identifier and all transactions are stored on the blockchain. By giving each product a unique identifier, it can be used to verify legitimacy and track ownership history. Open-source data like this can combat fraud and counterfeits by showing an easily trackable history of its path to you.

Two coins operate the VeChain platform. VET is the main currency that can be bought and sold and is used for most activities. The second coin, VTHO, is used specifically as a gas token to create smart contracts. The dual-coin method is a way of keeping transaction costs stable.

How is the VeChain network secured?

The VeChain network is secured through its consensus algorithm. Most cryptocurrencies use proof of work or proof of stake such as Bitcoin and Ethereum. VeChain uses proof of authority, where validators known as ‘authority masternodes’ confirm all transactions on the blockchain. The network uses a fixed number of authority masternodes who must first disclose their identity and fulfil minimum requirements set by the VeChain foundation.

What is VeChain used for?

VeChain’s primary use is to make supply chain management easier. The platform is already being used by multinational companies, including BMW, PricewaterhouseCoopers, and Walmart. Products can be given unique identities and tracked through sensors at every stage of the supply chain. As all information is recorded and verified on the VeChain blockchain, mistakes and other problems can easily be found and resolved.

VeChain’s native coin, VET, is also one of the largest cryptocurrencies by market cap. As a result, it is used by traders or investors speculating on its price.

Why does VET have value?

VeChain has value for multiple reasons, including its unique supply chain focus, multiple tokens, and proof of authority consensus algorithm. The network offers blockchain-as-a-service (BaaS) to many industries and already has many well-known businesses using its platform. VET is used to generate VTHO, so the more popular the platform becomes, the more VET is ultimately required to create more smart contracts.

Who created VeChain?

VeChain was created in 2015 in Shanghai by Sunny Lu, the former CIO of Louis Vuitton China. He used his knowledge of luxury goods and blockchain technology to create the platform initially used to spot counterfeit goods. It has since evolved into a supply chain management network.

Where can I buy VeChain?

You can buy VeChain on a crypto exchange. An exchange is a marketplace that allows you to sign up, deposit your money, and buy some crypto, just as you would with a stock platform.

Most cryptocurrency brokers allow you to keep the coins you buy in your account. However, you may want to sign up for a dedicated crypto wallet for some extra security.

You can deposit money into a broker or exchange account by bank transfer or card payment. However, if you prefer to use a different payment method, like PayPal, your options may be more limited. Use these guides to discover how to buy VeChain with different payment methods.

Are there any other ways to invest in VeChain?

The simplest way to invest in VeChain is to buy it outright. However, another option is to simply open a crypto account. Crypto accounts are like regular bank accounts and allow you to store a variety of currencies, send and receive payments, earn interest on savings, and spend freely with a credit card.

You can also generally invest in crypto through a crypto ETF or a crypto fund. These financial instruments expose you to a group of leading cryptocurrencies more suited to high-net-worth individuals.

More about VET

What is the VeChain price today?

The VET price is currently 0.02372, as of October 2022. The price of VeChain is down 75% in 2022. You can use the live VeChain chart to track the VET/USD price in real-time above, or compare the VeChain value today to its past performance using the VeChain price history tab at the top of this page.

What is the price prediction for VeChain?

The average VeChain price prediction values the coin at $2.50 by the end of 2025 . Things like the economic climate, establishment support and acceptance, and the crypto market as a whole can all impact the price.

It’s best to take predictions with a grain of salt, but you can use expert estimates to help you understand the weight of opinion about a coin.

What is the total supply of VET?

The circulating supply is 72,512,634,466 VET, out of a total maximum supply of 86,712,634,466 VET.

Are there any VeChain alternatives?

There are a few VeChain alternatives and many cryptocurrencies have attempted to imitate it. VeChain is one of the most popular cryptos, but others have tweaked the code to offer something different. Below are three alternatives to VeChain.

  • IOTA. IOTA records and executes transactions in the IoT ecosystem.
  • Chainlink. Chainlink provides a bridge between blockchains and the real world.
  • Ethereum. Ethereum lets anyone use smart contracts.

More crypto guides

FAQs

Has VeChain been hacked?

Yes, in 2019, the VeChain buyback wallet was hacked with 1.1 billion VET tokens worth an estimated $6.53 million stolen. VeChain attributed the hack to a human error within the foundation and took steps to correct the error and improve protocols.

Are VeChain transactions anonymous?

All transactions on the VeChain blockchain are recorded and verified, allowing anyone to see them. However, transactions are encrypted, meaning it is only a number that is recorded, so you can anonymously make transactions.

Recent VeChain price analysis

VeChain Price Movement: Will VET increase in value after its mainnet upgrade?
November 16, 2021
2 IoT cryptocurrencies to buy and 1 to sell in November 2021
November 15, 2021
VeChain continues to increase its value, should you buy it?
October 28, 2021
I’m buying Algorand, VeChain, and Elrond on October 7, and this is why!
October 7, 2021

Sources & references
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Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.