VET or Ve chain coin is a software that operates as a part of Ve chain thor decentralization network. It supports two types of cryptocurrencies and smart contracts. VeChain is extremely effective for logistics and tracking. Additionally, sparks the interest of shipping, retail, manufacturing, warehousing, supermarket, and other businesses. VeChain may be an interesting aspect of your cryptocurrency strategy due to its innovative supply chain specialization.
What is VeChain?
As per CNN, this problem costs businesses $ 461 billion every year. Officially, the blockchain-dependent platform started its operation in Singapore in the year 2015. It automates real people, products, and events by linking the API to the system’s application layer and connecting the blockchain to real data. The project is primarily concerned with supply chain management and the problem of counterfeit luxury products.
Smart Contracts are utilized by the VeChain foundation to focus on real-world industrial operations. It facilitates collaboration and value transfer among various use cases. VeChain is pioneering a fundamentally new business model that enables all customers and businesses with “trustworthy services.”
As we discussed earlier, VeChain is a cryptocurrency that works on its blockchain network and has two native cryptocurrencies. They are as follows:
- Firstly, is the VET coin: For a vote on protocol improvements.
- Secondly, VTHO coin: For executing transactions.
How to mine VET coin?
It is not possible to mine VeChain. Instead, it operates based on proof of authority, with the larger participants serving as network validators. This means that the task of validating and operating the VeChain network is done by a fewer number of machines. Individually, this means that you are unlikely to be able to mine VeChain.
In case you have a good reputation, the network elects as a validator. This is analogous to proof-of-stake coins. Those who have the biggest stake in the network can choose validators. Both, however, utilize far less energy than competing proof-of-work coins.
How VET coin work?
A unique identifier is assigned to each product on the VeChain platform. You can engage with a chip, tag, or code at any step in the product’s life cycle, whether you’re a distributor or a retail partner who decides party membership, or a consumer who wants to learn more about the product’s origin. Brand protection, counterfeit protection, and food safety are among the services of the company.
Supply Chain Trust:
To track things throughout their lifecycle, VeChain uses a combination of blockchain technology and an in-house creation of a smart chip. The smart chip can be in frequent use in a variety of IoT devices, including NFC chips, RFID trackers, and QR codes.
Although it may not appear to be the most exciting technology, it plays a critical function in assuring product quality in a variety of industries. Let’s take the luxury goods industry as an example.
The luxury goods market is rife with counterfeit goods, estimated to be worth more than $450 billion. When an item like a Louis Vuitton purse passes through numerous hands during its manufacture and distribution, you have to trust that the person who came before you is handing along an authentic piece.
Like other blockchain startups, VeChain, VET coin eliminates the requirement for trust. You may scan the smart chip on each item at any point along the process to ensure you’re getting exactly what you ordered. Because the blockchain is an immutable ledger, you can be confident that the information you’re receiving is correct.
Although not now available, it’s not unreasonable to believe that this technology will soon be in consumers’ hands. With a fast scan from your phone, you’ll soon be able to verify the legitimacy of those shady flea market stand sunglasses.
VeChain coin not only protects against counterfeiting but also enhances logistics operations by making product tracking easier. Logistics is complicated, and it often entails several different systems that differ from one company to the next. As a result, tracing products across the supply chain can be extremely difficult. This is especially true when data must be manually entered or programs must be switched between.
You simply scan the item’s smart chip with VeChain to retrieve all of its associated data. This gives firms access to up-to-date information and an accurate account of each item.
VeChain coin assists with quality control by integrating with IoT devices. This is especially valuable in the food and agriculture industries, where a small temperature fluctuation can damage a whole batch of products.
Partnerships and the Vision of the VET coin
VeChain’s mission is to remove entry barriers and enable businesses to use blockchain to solve real-world economic challenges. Rather than decentralized finance, it’s about open finance (Defi). VeChain has a varied ecosystem with a variety of builders, ranging from businesses and communities to startups, organizations, and regulators.
The use cases shown here are both creative and exciting. VeChain is all about efficiency and trust, from a transparent supply chain in the food industry to anti-counterfeiting solutions and more. VeChain’s commercial collaborations are already growing, with large names like BMW (OTCMKTS: BMWYY) and Renault joining the roster (OTCMKTS: RNLSY).
In other words, there’s some serious momentum here.
What is causing the price of VeChain (VET) to rise?
Recently at month end of March 2022, VeChain (VET) climbed another 25%, reaching a high of $0.08657 and a market capitalization of approximately $55 billion. The latest surge is VeChain’s second rapid ascent this week, with VET achieving a similar, albeit somewhat longer, a spike of over 42 percent that began on March 30, 2022. VeChain was one of the best-performing coins that week, with a 62 percent increase in the last seven days.
What Is the Purpose of VET coin Rallying?
VeChain had been on a downward trend since early January, with the token’s price dropping to $0.04001 on February 24th, at which time it began a steady recovery that it has sustained since then.
However, the asset’s latest price increases, which were heavily associated with numerous pieces of news from the VeChain project’s designers, were not very noteworthy.
In Europe, the VeChain Foundation is expanding its presence and collaboration. VeChain co-founder Sunny Lu says the company is nearing a decision on a new technical team, which will include 100 developers, to meet growing demand from European businesses.
The Final Word on VeChain coin
When it boils down to it, I view all cryptocurrencies as highly speculative investments with dubious fundamental value. The worth — or rather, the price — of VET-USD, on the other hand, will ultimately be determined by supply and demand.
The general market sentiment toward VeChain is currently ranging between bullish and neutral, following the positive events and the enormous VET price run.
Is the pricing currently unreasonably low? It’s difficult to tell. Is it possible for it to go higher? Maybe. Trying to guess what will happen next is like tossing a coin. Who knows how much anything will cost in a few months or years.
However, there are some very fascinating elements in this game. The company concept, vision, and utility all appeal to me. I believe VeChain’s big-name partners have seen something of value in it as well. VeChain should be on your radar.