Vechain’s proprietary technology helps to authenticate purchases and boost consumer confidence through reliable recordkeeping. Moreover, it can help companies to establish a higher level of transparency during their manufacturing and delivery processes.
But what is VeChain, and how does it function? And most importantly – is its VET coin a good investment?
Read on below for a deeper look into the world of VeChain, and find out what investment prospects this emerging technology holds right now.
What Is Vechain (VET)?
Let’s start by firstly understanding the role of VeChain in the realm of cryptocurrency.
Currently, supply chain data for business procedures is compartmentalized in data silos among various stakeholders. It adversely affects information flow and acts as a dividing aspect among stakeholders. VeChain offers to provide a complete view of all organizational processes by taking away the concept of information data silos.
Essentially, VeChain is a blockchain platform that helps to simplify information chain management. Its blockchain was originally conceived as a means of determining whether a real-life product is genuine or not. It helps prevent frauds and knock-offs; and now, multiple corporations use its blockchain to keep track of production, manufacturing, delivery, and much more.
The blockchain purports the formation of self-executing smart contracts with a definitive outcome without third-party trust or intrusion required. It facilitates the establishment of decentralized applications (DApps), which can solve many enterprise problems, including:
1. Anti-counterfeit for Luxury Products – VeChain uses smart chips technology to track every individual item, hence preventing duplication
2. Cold-chain for Logistics – Using smart Internet of Things sensors to report critical data through the blockchain, companies can automatically monitor and ensure that food products aren’t spoiled during transportation and storage
3. Automobile Industry – companies can retain a tamper-free pool of data for vehicle data such as repair history, registration, insurance, and driver habits
4. Going Green – companies can quantitatively track their carbon contributions to help decrease carbon emissions. The concept here is that consumers engaged in reduced carbon-emitting behaviors, for instance, buying products with reduced carbon, could be given the credits that can be redeemed for environment-friendly products or can be given as a donation
5. Clinical Trial Traceability – collaborating with Bayer China, VeChain intends to use blockchain technology for solving problems related to digitalized clinical trial tracing
VeChain aims to grow into a leading platform for initial coin offerings (ICOs) and lead transactions between Internet of Things (IoT) connected devices.
How Does Vechain Work?
The main goal of VeChain is to streamline the data flow of supply chains. The VeChain portal comprises two specific tokens:
1. VeChain Token (VET) to give value to VeChain’s network (funds the blockchain)
2. VeChainThor Energy (VTHO) to strengthen smart contract plans (empowers the technology)
The way it works is this: As mentioned briefly in the previous section, VeChain allocates every product a distinct identity. It uses smart chips or Radio Frequency Identification (RFID) tags and sensors to track what happens to the product at every phase of the supply chain. Moreover, all this information can be accessed in real-time by authorized stakeholders. It helps companies and customers ensure that each product is handled properly and verified for legitimacy during a purchase.
The VeChain Portal claims to deliver a 360-degree outlook of all the essential information related to a product and its subsequent business processes. The platform provides access to authorized stakeholders, such as supply, storage, and transportation, to create greater market transparency. VeChain also publishes frequent financial reports to encourage transparency.
VeChain aims to develop an intrusion-free and evenly deployed corporate system to allow clear information flow, promote effective cooperation, and allow velocity-based information sharing. As per VeChain’s philosophy, blockchain technology has the power to break the asymmetric information flow and allow for data ownership to flow back to and strengthen its user.
To elaborate a real-life use of VeChain based management of operations, the portal can monitor and keep track of a long list of operational details. Information such as quality, validity, storage temperature, mode of transportation, and mile route delivery of a pack of medicines can be managed right from the manufacturing facility to the end customer, using the above-mentioned smart-chip sensors.
What Are The Key Features of Vechain?
The key features of VeChain as a blockchain and a cryptocurrency are:
1. Open Source Blockchain: Like many blockchains, the VeChainThor blockchain is open source, which makes it suitable for hosting smart contracts and DApps.
2. In-house IOT and Supply Chain Management Technology: The VeChainportal will allow corporations to use the awesome power of blockchain for industries such as agriculture, liquor, and luxury goods.
3. Native Fee Delegation: Native fee delegation is a part of blockchain code, and the app users are not expected to hold VET or VTHO. They can write transactions related to gas costs as stated by sponsored developers are not applicable.
The History of Vechain
Having understood what VeChain is and what it is meant for, let’s delve a bit into its origins.
Sunny Lu, Louis Vuitton China’s ex-Chief Information Officer (CIO), founded VeChain in 2015. The platform grew as a Bitse subsidiary, a leading and reputable blockchain company in China. VeChain is one of the few blockchains that have a considerable customer base amid well-established companies.
Since its inception, the company has been developing enterprise-focused solutions deployed on its proprietary blockchain platform. With a rising trend towards building better decentralization platforms within the blockchain industry, VeChain moved to a consortium blockchain before establishing the VeChain Foundation and ultimately starting their final migration to a Proof of Authority (PoA)-based public blockchain platform.
In the early days, the VEN token operated through the Ethereum platform and its blockchain technology. More recently, VeChain created an independent blockchain platform and rebranded it to VeChainThor (VET) in 2018.
In terms of strategic partnerships, VeChain has, over the years, formed alliances with many major corporations. These partnerships focus on helping to achieve their goal of blockchain-powered transparency in the management and supply industries. Among these agreements is a partnership with PricewaterhouseCoopers (PwC) in line with VeChain’s aim to reach the respected accounting firm’s client base. The collaboration will help improve product verification and tracking systems.
Another major arm of VeChain is its partnership with Renault. Along with Microsoft and Viseo, the brand has created a car maintenance book that is digitally managed and tamper-proof. VeChain is the official partner of technology for the Gui’an- technology sector. Gui’an is the economic development zone in Central China.
Other notable partnerships and live-use cases include:
· DNV GL
· Walmart China
· BYD Auto
· Bayer China
· ASI Group
Vechain Price History
VeChain price history is based on the VET Token used on the blockchain. Since about late 2018, the VET Token price mostly moved sideways in a range of $0.002-$0.009. However, even within this range, it has presented itself as being tremendously changeable at times, with prices jumping in the double-digit percentage range.
In 2020, VeChain finally managed to create a stir in the market when the price rose to $0.02 in the course of a price rally in the middle of the year. It amounted to an increase of approximately 400 percent in just more than a month.
Moreover, the success of VeChain is attracting further investors. The bull market that took place instantaneously propelled the VET Token price to over $0.03 shortly after the beginning of the year 2021. On January 21, VET reached its new all-time high price at $0.035. Since then, it has catapulted in price even more, reaching an all-time high on April 27 of $0.27.
With a The market capitalization (or market cap) of a cryptocurrency is a measurement of its market value. In other words, it... at the time of writing of around $11 billion, VeChain ranks 14th in market cap among cryptocurrencies. The total supply is 86.712 million VET, with just over 64 million VET currently in circulation.
What Is The Future of Vechain?
It must be obvious by now that the technology undoubtedly works; many investing partners believe in the project, and presently, the price is on a sturdy upswing. All in all, the prospects of VeChain looks promising.
But before we make any price forecasts, let’s note some expert opinions.
VET Price Predictions
Remember that these predictions are only to form informed opinions and is not investment advice.
Experts at Coinswitch predict a positive price trend for VeChain, saying the VET token may increase in price to $0.38, by 2023 – mostly propelled by partnerships with big names such as PwC, Renault, and others.
Analysts at Wallet Investor also see VeChain as a worthwhile investment. They predict it could reach as high as $0.86 by 2025.
Digitalcoinprice.com‘s forecast also assumes an overall profitable long-term investment, predicting it could reach $0.50 by 2025.
VET Price Factors
You might be asking yourself: what is behind these positive upward trends?
For starters, this performance is mainly because of the large number of companies adopting the VeChainThor platform to develop apps that connect blockchain technology to the real world. Examples of these companies include LVMH, Walmart China, and BYD.
Another factor is the social media hype. In recent times, traction surrounding Vechain on social media, especially on Reddit, has grown. It has led to many users buying the currency because of the ‘fear of missing out (FOMO) phenomenon, something that is well-known in the world of crypto.
The Bottom Line
To sum up, VeChain is already among an elite list of companies that can pride themselves on developing a fully-functioning and coherent product that is being used by numerous industries. It’s fair to say that this is down to the team behind this project having taken an extremely innovative approach to their work.
In a globalized world, where products cannot be manufactured centrally in one place anymore, tracking them has become an issue of immense importance. Hence, VeChain helps create the infrastructural basis to resolve this problem in a blockchain efficiently.
If you’re thinking of investing in VeChain, and analyze the forecasts and expert predictions regarding its growth and usability, the price increases of 300% or more over the coming years do not seem unrealistic. However, of course, as always it’s important to do your own research. Investors who want to buy the VET token must carefully educate themselves about VeChain and its technology and use crypto expert opinions only as a supporting tool before deciding to take the plunge and investing.
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