What is VeChain and VET Сryptocurrency?

VeChain, which was established in 2015, is a pioneer in the creation and application of blockchain solutions for tracking authenticity and retail sales. VeChain has offices in China, the European Union, the United States, Japan, and Singapore at the moment.

The business has long-standing relationships with important multinational firms including Walmart, BMW, BYD, and others, as well as with Chinese and foreign governments’ agencies.

Who Created VeChain?

Sunny Lu, a former top manager of Louis Vuitton China, and Jen Zhang, a former Deloitte and PricewaterhouseCoopers employee, founded the startup VeChain in Singapore in 2015.

The VeChain Foundation, a non-profit corporation, was registered in 2017 and took over the development and maintenance of the blockchain technology as well as luring partners and expanding the VeChain ecosystem.

The same year, VeChain raised $22 million from the sale of VET native coin tokens. Investors were drawn in by a number of significant collaborations that had previously been established at that time, including one with the German automaker BMW.

VeChain raised funds in three corporate rounds in the spring of 2018 from PricewaterhouseCoopers (PwC), DNV GL, Haitao Capital, BlockVC, and IOSG Ventures.

The VeChain prototype first operated on the Ethereum network, but in the summer of 2018, its creators introduced the VeChainThor mainnet. The project established subsidiaries in China, the United States, the European Union, and Japan over the ensuing years. The VeChain Foundation Headquarters in San Marino was inaugurated in February 2022, underscoring the significance of the European market for the business.

What are the two cryptocurrencies’ purposes and why are they there in VeChain?

The developers of VeChain released 1 billion VEN native tokens on the Ethereum network in 2017. A closed token sale for early investors sold 9% of them, and a public ICO raised $20 million using 41% of them. Following the VeChainThor blockchain’s launch, VEN was swapped for native VET currencies at a 1:100 ratio.

VeChain Token (VET) and VeThor Token are the two native cryptocurrencies used by the VeChainThor blockchain at the moment (VTHO).

The estimated 86.7 billion VET tokens in circulation were dispersed to early investors and token sale participants to the tune of around 70%, with the remaining 30% going toward the expansion of the VeChain ecosystem and paying engineers.

The VeChain coin serves the following four purposes:

VET is utilized as a settlement instrument for transactions on the VeChainThor blockchain; it also serves as collateral for VeChain node launches.

Staking: When VET is kept in the wallet of the node, a VTHO token is created. 4.32 VTHOs are created every day for every 10,000 VET at node addresses, and nodes can take part in network administration based on the number of VETs they now have. 40% of the total votes are split among the 101 trusted masternodes.

On the VeChainThor network, transfer fees are paid using the VeThor Token (VTHO). 30% of all VTHO fees received are sent to trusted masternodes as rewards, with the remaining 70% being burned.

According to researchers, VeChain Token (VET) is among the top 50 crypto assets. On all significant cryptocurrency exchanges, both coins are exchanged.

What Progress has VeChain Made?

VeChain has been actively collaborating with colleges across the globe since its inception to develop blockchain solutions for healthcare and environmental protection. Tsinghua University, Stanford University, Massachusetts Institute of Technology, Oxford Institute of Mathematics, and City University of Hong Kong are some of the institutions that collaborate on research.

The usage of the VeChainThor blockchain for healthcare and the containment of COVID-19 was one of the most impressive examples.

VeChain and DNV GL joined up to launch the VeTrust app in September 2020. It contains a cleaning and safety checklist that hotels can employ when preparing food for visitors and cleaning guest rooms. More than 200 hotels and public spaces have been connected to this system in China.

VeTrust has also been used by local administrations in multiple Chinese provinces to visualize infection risk management in 95 apartment buildings with a combined population of over 300,000.

The VeCarbon platform for tracking and reducing carbon emissions will be made available, according to a 2022 announcement from the VeChain Foundation. Businesses can reach carbon neutrality, emissions targets, and sustainable development objectives with the use of the product. The product is employed by numerous businesses.

The Chinese automaker BYD has already tested it in electric vehicles, where car owners might receive some compensation by turning in their carbon credits. Amazon Web Services (AWS) has joined VeChain in the VeCarbon initiative as of August 2022.