Hello and welcome to the Exodus
channel, your home for the best crypto videos. Hit those like and subscribe
buttons and we’ll keep the videos coming. VeChain is one of the oldest and most established
blockchain projects out there, with its VET token currently ranked near the Top 30 by market
cap. Whether you’re new to crypto or a long-time holder, keep watching to find
out all about VeChain in the year 2021. What is VeChain? VeChain is an enterprise-focused
public blockchain solution with extremely high-profile partnerships under its belt.
Because of its enterprise focus, VeChain is not as decentralized as other blockchain projects.
But that is exactly what makes it attractive to enterprises, who might prefer a centralized
authority that they can hold accountable. As a trade off to decentralization, VeChain
offers other benefits like central governance, low transaction fees and regulatory
compliance. From industries like fashion and agriculture to food supply. And for use
cases like traceability, anti-counterfeit, food safety and product life-cycle management,
VeChain is working with industry heavyweights from China, Singapore, Australia and Cyprus
to advance blockchain enterprise adoption.
So, VeChain and VeThor, VET and VTHO.
What’s the difference? Let’s dig in. Unlike Proof of Work or Proof of Stake, VeChain
uses a Proof of Authority or PoA consensus mechanism. How this works is that a total of .
Authority Nodes must hold at least 25 million VET. Although Authority Nodes are known to each other,
the identities of these Authority Nodes remain hidden to the general public, which have led
some critics to point out the possible risk of collusion and centralization.
recently Grant Thorton Cyprus was identified as an Authority Masternode along with already
known Authority Masternodes DNV GL and PwC. If you are big on VeChain, you can
also become an Economic Node and help stabilize the network by holding a minimum of 1
million VET and earn some additional perks such as a higher VTHO generation rate. We’ll explain
more about VET’s unique dual-token system later. As we speak, VeChain is working on its new PoA
2.0 SURFACE consensus algorithm with several innovations to allow even faster transaction
confirmations for its enterprise users.
As I mentioned, what makes VeChain different
is that it is enterprise focused. VeChain markets itself as a Blockchain as a Service or
BaaS platform, with the VeChain ToolChain as its key product. VeChain ToolChain works as an
off-the-shelf, plug-and-play blockchain solution for enterprises that have little to zero
blockchain development capabilities and so allowing enterprises to start adopting
blockchain technology right out of the box. Having been in the space for a while, VeChain is
certainly not short on big-name partners such as Deloitte, Walmart China and Shanghai
Gas, along with smaller but promising projects in its ecosystems like
Fresh Supply Co and Real Items. VeChain’s most prominent partner to date
is the germany risk management company, DNV GL. It co-developed the blockchain-powered
digital assurance solution called “My Story” with VeChain. My Story is now
used by Italian wine producers, among others, to trace and track
the provenance of their wines.
Another big project in the VeChain universe
is the community project and multiplayer game, VulcanVerse, built on the VeChain Thor blockchain. The game with its own virtual world
is scheduled to launch in Q1 2021. What about the VET and VeThor tokens? VeChain
is one of the unique blockchain projects that features a dual-token system with VET being
the main token used as a store of value, and VTHO as the “gas” used to pay for
transactions on the Vechain THOR blockchain. This dual-token system gives users and
enterprises flexibility to hold VET and generate VTHO or to buy VTHO from the open
market without holding any VET. Anyone who holds VET automatically generates VTHO tokens at the
rate of 0.000432 VTHO per day, per VET. Just by holding VET in your Exodus wallet allows you to
automatically earn VTHO, even while you sleep. What VET and VTHO holders are watching out
for, are the daily number of transactions on VeChain’s mainnet.
The higher and more complex
the transactions, the greater the VTHO burn. Eventually, if VeChain’s mainnet begins to
process multiple millions of transactions a day, the dual tokenomics will kick in and cause
both the demand and price of VTHO and VET to increase. Currently, the mainnet is burning
an average of 7 million VTHO a day, with the biggest smart contracts attributed to Walmart
China, VulcanVerse, DNVGL and Shanghai Gas. Blockchain technology is still in its
early stages, but VeChain’s roadmap is in full play with 2021 set to be a big year for the
company with greater global enterprise adoption. Does V in VeChain stand for Victory?
What are your thoughts on VeChain for 2021? Let us know your predictions in the
comments below. Till next time, HODL ON!.