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VeChain

VeChain: everything you need to know about VET

Axel van den Boogaard

Axel has been immersing himself in the world of crypto and blockchain for quite some time, which he then translates into understandable articles.

Vechain facts

Abbreviation

VET

Category

Smart contracts, data platform

Founder(s)

Sunny Lu

Blockchain

VeChainThor

Protocol

Proof of Authority

Launch date

2015

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What is VeChain? 

VeChain is a platform where companies can digitally collaborate on data transfer and supply chain management. VeChain aims to empower every business to launch new types of decentralized apps (DApps).

How does VeChain work?

VeChain focuses on the needs of the supply chain. The VeChainThor blockchain is the public blockchain of the platform, hosting two tokens: the VeChain token (VET) and the VeThor token (VTHO). VET is used for value transfer within the network, while VTHO acts as "energy" to power smart contracts. Similar to many other cryptocurrencies, the supply of VET tokens is limited, with a maximum supply of 86.7 billion VET.

Capturing the Production Chain

VeChain has various special applications, with the most popular being tracking goods and capturing data in the supply chain. Many companies requiring a verified chain of ownership through production, shipping, or other processes utilize VeChain for this purpose.

Thanks to smart contract functionality, users can track the ownership and control of their goods, such as ensuring a product has been safely purchased and stored by different owners and facilities. VeChain is also useful for anti-counterfeiting, digital vehicle passports, or transparent financial transactions.

For example, an electronics manufacturer can use VeChain to trace the journey of its products to distribution, and a wine producer can use VeChain to monitor sales figures, as well as document and trace the origins of grapes, seeds, and wines in line with quality requirements. Whatever a business wants to buy or sell, the entire process can be monitored using VeChain.

The VET-token 

 To operate its software, VeChain uses two tokens:

  • VET for storing and transferring value.
  • VTHO for transactions on its blockchain.

This structure aims to isolate VET token price fluctuations from the costs of computations on the network, enabling applications on VeChain to charge stable fees. This is possible because the VTHO token supply can be adjusted to maintain a stable transaction fee price.

Similar to how the Ethereum blockchain uses Ether and "gas," stakers earn VTHO fees that are automatically calculated by the network. The more complex the computation, the more VTHO a particular program requires.

Nodes (called "Authority Master Nodes") that stake VET tokens have the ability to vote on network upgrades and receive VTHO rewards for each block.

The Technology Behind VET

VeChain provides businesses with the capability to develop and launch new types of DApps as needed. To facilitate the creation of these DApps, the VeChain team built a component called the VeChain ToolChain, a software development kit.

Proof of Authority

VeChain employs a consensus mechanism known as Proof of Authority (PoA) to verify and record transactions on the network. Users verifying transactions and adding them to the blockchain are referred to as "Authority Master Nodes." To become such a master node, one must stake a minimum of 25 million VET tokens and provide their identity to the VeChain Foundation.

Using a PoA mechanism helps process large transaction volumes quickly. However, the drawback of this approach is that the network relies on a central authority to control and authorize users processing transactions. Therefore, VeChain continually works on improving its PoA to ensure a more random and distributed block generation mechanism.

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Benefits of VeChain

What are the advantages that make investors believe in VeChain?

  • Useful and legitimate application for business supply chains.
  • VeChain boasts partnerships with major names such as BMW, H&M, PriceWaterhouseCoopers, and Walmart.
  • The platform is highly transparent about its data and financial performance.

Drawbacks of VeChain

Unfortunately, not everything is perfect in the crypto world, and there are risks associated with buying crypto. What are the downsides to consider with VeChain?

  • VeChain primarily targets business applications and investors.
  • VeChain operates a closed ecosystem and is not compatible with other blockchain platforms.
  • There is a limited number of master nodes validating all transactions, which can sometimes result in longer verification times.

Who is the founder of VeChain?

VeChain was founded by Sunny Lu and Jay Zhang. Sunny Lu played a leading role in the development of the VeChain platform, while Jay Zhang brought technical expertise to support the project. Together, they founded VeChain with the goal of improving supply chain management and promoting transparency in various industries.

Price forecasts

In 2026 experts expect a minimal price of €0.1100 and a minimal price of €0.3700 in 2031.

Good time to get in?

View all key statistics of the past 24 hours here.

Market information

Use these figures to get a better picture of the VeChain market.

VET Return On Investment

See how much the price has risen or fallen over the years.

Historical VeChain price

Here you can see VeChain's daily prices, trading volume and market cap. Looking for a specific date? You can fill in the range all you want. Maybe you'll spot the one trend!

A video explanation of VeChain

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