What is VeChain & How Does It Work?
For years, the luxury goods industry has been struggling to eliminate counterfeit products. Brands have invested heavily in ultra-sophisticated tech solutions such as Artificial Intelligence (AI) to authenticate the products. However, these efforts have not always been as effective, and counterfeiters continue to harm the brands’ image and revenue.
This is where the VeChain blockchain is making a massive difference. Its fraud-preventing technology is turning heads in the clustered crypto-verse. But, what is the VeChain blockchain? How does it work? And how and where to buy VeChain (VET) token? Let’s dive in and find out.
Connecting your VeChain Address to ZenLedger For Your Crypto Tax Forms
- To import your VeChain transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button
What is VeChain Blockchain?
VeChain blockchain is a platform especially modeled to accentuate and optimize supply chain management and business processes. It was founded by Sunny Lu, Louis Vuitton’s former CIO of China in 2015 with a goal of streamlining the information flow of intricate supply chains by leveraging distributed ledger technology (DLT). With a unified knowledge of luxury goods and blockchain technology, he created an Internet of Things (IoT) application for optimizing supply chains.
It helps customers know whether their products are authentic and provides greater transparency during the manufacturing and delivery process. How does it do that? VeChain blockchain assigns a unique identity to each product and then uses sensors to surveil the product at each stage of the supply chain. With this, companies are assured that their products are correctly handled and the consumer has received a genuine product.
Now that we’ve touched upon what is VeChain, let’s explore how it works.
How does VeChain Blockchain work?
VeChain has three main parts, namely:
- Real-world Tech
- The Platform
- The Cryptocurrency
As mentioned earlier, VeChain assigned a distinct identity to physical products generally through OR Codes, radio frequency identification (RFID), or near-field communication (NFC). These sensors record useful information at each step of the supply chain and link it to the product’s identity. These sensors are designed by VeChain itself but manufactured by Qualcomm and Bosch.
On top of that, the product is stored using blockchain technology and therefore the recorded information can’t be altered or deleted. Consequently, the records are truthful as to what the conditions were all through the distribution chain. If anything goes wrong, for instance, goods being delivered to the wrong address, the blockchain will display where exactly the mistake occurred.
This ensures that the products manufactured, shipped, and delivered were authentic. It especially works in the premium handbags sector as a microchip is placed in the handbag and when scanned, it shows reports of its journey from manufacturing to delivery. The chip is left in the bag after it has been sold, allowing its owner to resell it and still verify its authenticity.
VeChain runs on a platform recognized as the main net and it can be used by other blockchain projects to set up their coins on VeChain’s system (just like Ethereum). Main-net has also helped VeChain shift from a supply chain focus to decentralised applications.
Before releasing its platform in 2018, VeChain issued tokens called VEN on the Ethereum platform. When they launched their own platform, they rebranded the token to VeChainThor (VET), which is now the native currency of the VeChain blockchain ecosystem. The more amount of VET a person or organization holds, the higher preference they get while using the network’s resources. If a company has to pay VTHO to use VeChain’s tracking for their supply chain and add more information to the blockchain.
What is the Block Approval Process?
One of blockchain’s characteristics is that it needs several people to verify a block before adding it to the ledger. This block is an archive of information that cannot be changed or deleted and there are multiple ways to add this block of information to the network. One of them is proof-of-work, closely associated with Bitcoin mining where the first miner to crack the mathematical puzzle earns a reward.
If you are thinking what is VeChain blockchain’s consensus protocol, it works on a different model known as proof of authority. Here, users don’t have to solve mathematical puzzles as these users are known as validators that verify the transactions just using computer software and add blocks to the ledger. This makes transactions a lot quicker as compared to proof-of-stake as well as proof-of-work protocols.
How to Buy VeChain?
Since we’ve covered how VeChain works, let’s find out how to buy VeChain and where to buy VeChain from. Let’s find out:
Open an Online Account
Both the VeChain tokens, VTHO, and VET are available on Gemini or Coinbase. You can buy them on Binance by opening an account on the exchange by providing your name, address, number, email ID, and Social Security Number.
Buy a Wallet
If you are planning to buy VET or VTHO, you’ll need a wallet to safely hold your tokens. Binance has an in-built wallet but it is best to move your tokens to either a software or a hardware wallet. Software wallets are connected to the internet and are susceptible to hacks. A hardware wallet, however, never touches the internet and is much safer than a software wallet.
Make Your Purchase
After setting up an account and buying a wallet, all that’s left to do is add funds to your account and buy the token. Don’t forget to move your tokens to a wallet of your choice.
After launching its own platform, VeChain has always delivered on its promises. On top of that, secured partnerships with leading companies have made VeChain more desirable to big organizations.