What is VeChain (VET)

VeChain (VET) is a blockchain platform designed for supply chain management and business processes. It was founded in 2015 by Sunny Lu, a former Chief Information Officer at Louis Vuitton China.

VeChain aims to improve supply chain efficiency and transparency by using blockchain technology to track the movement and authenticity of products. The platform utilizes smart contracts to automate the execution of various business processes and to provide a tamper-proof record of transactions.

VeChain initially focused on the luxury goods industry, but has since expanded to other sectors such as agriculture, automotive, and pharmaceuticals. In 2018, VeChain rebranded from VeChain Thor to simply VeChain and launched its own mainnet. In 2020, VeChain introduced a new blockchain platform called VeChainThor 2.0, which aims to improve scalability and support the mass adoption of blockchain technology.

How does VeChain work?

VeChain’s blockchain technology is based on a proof-of-authority (PoA) consensus mechanism, which allows a limited set of approved nodes to validate transactions and create new blocks. This is in contrast to proof-of-work (PoW) or proof-of-stake (PoS) consensus mechanisms, which rely on computational power or stake in the network to validate transactions.

VeChain’s smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These smart contracts can be used to automate various business processes, such as tracking the movement of goods, verifying the authenticity of products, and releasing payments based on predetermined conditions.

VeChain has a variety of use cases and applications across different industries. In the luxury goods industry, VeChain can be used to track the movement of high-value items and verify their authenticity, which can help reduce counterfeiting and improve customer trust. In the agriculture industry, VeChain can be used to track the movement and quality of produce from farm to…