VeChain is a leading project with blockchain enabled platform. It aims at building a bridge between blockchain technology and real world by providing a semi-decentralized governance structure, advanced IoT integration, high scalability and flexibility for Real Enterprise use.
VeChain is a Singapore-based company with a decentralized blockchain platform enabled with smart contracts and network of Masternodes. It was established in the year 2015 and aims at building a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers. VeChain implements Proof of Authority (PoA) consensus to its blockchain protocol which eliminates the need to spend a huge amount of electric power to validate the blocks and solves the scalability issues. Its native currency VET is used as the smart payment currency to run business activities on its blockchain.
The rebranding of VeChain to VeChainThor has taken the company from just being a supply chain management project to a blooming DApp solutions enterprise. VeChain Thor mainnet launched on 30th
June 2018 with unique features such as with robust blockchain core infrastructure, matching infrastructure services, proper governance and economic design, growing community and business engagement etc. VeChainThor has two phase layer system: an IoT-based token layer and a smart-contract layer which enable features such as tracking of digital assets on the blockchain and, ownership and DApps creation respectively.
VET is VeChainThor platform’s smart money which is used as payment currency on its blockchain ecosystem whereas VTHO is used to execute smart contracts, run apps on the Thor blockchain and pay for tokenized transactions. Holders of VET receive dividends in VTHO. Holding one VET pays a dividend of 0.0042 VTHO per day Also, holders of VeChainThor can purchase VeChain mainnet network vouchers to create smart contracts or interact with the dApps on the platform.
Prominent Features of VeChain Ecosystem
Unique Governance Model
VeChain is not completely a decentralized design. It believes in maintaining the balance of decentralization and centralization. This balance helps its platform to vary and easily adopt to the different stages of development in the blockchain technology and its ecosystem. The Board of Steering Committee is the governing body of the VeChain Foundation. It is selected by identifiable stakeholders with VET Voting Authority. The Steering Committee monitors the fairness and effectiveness of policy and decision making for the Foundation, lays out the critical strategies and selects functional committee chairs to oversee the operational units of the Foundation. The governance principles are subject to change from time to time. This governance structure of VeChain ensures transparency, visibility, flexibility and efficiency of the platform.
Economic Model and Design
As discussed earlier, VeChain Thor is a platform that conducts its operations using two smart currencies namely VET and VTHO. VTHO is passively generated by holding VET and thus any user with VeChain Tokens (VET) can make transactions at no extra cost if he/she holds the tokens for a considerable period. The basic principle of designing such as model is to prevent transaction fees from being directly exposed to the volatility of the price of VeChain tokens thus making it more suitable for conducting business related activities. VET can be termed as the ‘smart money’ of the platform which enables business and financial activities whereas VTHO is the ‘energy’ of the platform which executes smart contracts transactions and payment transactions.
Proof of Authority (PoA) algorithm and State-of-the-art IoT Solutions
In PoA-based networks transactions and blocks are validated by selected individuals known as validators. PoA is cost and energy efficient and is also immune to 51% attacks as the trust is distributed and it only allows non-consecutive block approval from any one validator. Use of PoA algorithm makes VeChain partly decentralized and partly centralized thus reducing the risk of network attacks.
Internet of Things (IoT) is a fast-growing technology which connects the real-world objects such as automobile, buildings etc with intelligent sensors to exchange and collect data. VeChain is using this technology to build its platform and develop real world applications in fields such as Fashion and Luxury, Food Safety, Automobiles, Supply Chain, Agricultural Industry, Government Affairs etc.
VeChain comprises of a well-balanced team of experienced personalities from different industries and countries with expertise in various fields such as business, technology, support and operations etc. Sunny Lu is the co-founder and CEO of the VeChain Foundation. He established VeChain in 2015 and has been committed to blockchain technology and its business implementations since then. He has served as an IT Executive in Fortune 500 companies for over 13 years and was the CIO of LV China.
After studying the team members background and seeing the professionalized lookout of team section on the website with link to everyone’s LinkedIn and twitter, it is obvious that the project is in good hands and is bound to develop and innovate in the future.
VeChain is a great project from all aspects but it really needs to update its roadmap and provide it with a more detailed structure for the year 2019. “VeChainThor Ecosystem Expansion” is all that VeChain has on its roadmap for 2019. VeChain has so far matched its pace with its roadmap and has continued to develop and I believe it will soon update its roadmap and do the same this present year.
VTHO is listed on LBank
The VeChain Masternode is subdivided into Authority Masternodes and Economy Masternodes. It is designed to bring about a comprehensive enterprise focused blockchain ecosystem.
Authority Masternodes are the full nodes that create block records and validate all blockchain transactions whereas Economic Masternodes offer stability to the network and act as distribution of voting power which influences the governance.
There can only be maximum 101 Authority Masternodes each requiring staking a collateral of 25,000,000 VET (25M VET) and Verified Identity by completing the ‘Know Your Customer’ (KYC) verification in the VeVID portal.
Economy Masternodes are further sub-divided into 3 categories depending upon the staking collateral amount as stated below:
Mjolnir Masternode: 15,000,000 VET
Thunder Masternode: 5,000,000 VET
Strength Masternode: 1,000,000 VET