VeChain is a blockchain platform that aims to enhance supply chain management by connecting blockchain technology with the real world through unique identification, RFID and NFC chips. The platform is designed to enable manufacturers, suppliers, and retailers to track the entire lifecycle of a product, from the initial raw materials to the final consumer, in order to increase transparency and efficiency. VeChain’s native cryptocurrency is VET, which can be used to pay for transactions on the network.
VeChain was created in 2015 by Sunny Lu, a former chief information officer of Louis Vuitton China.
What is VeChain?
VeChain is a blockchain platform that is designed for supply chain management and logistics. It uses smart contracts to facilitate the tracking and verification of transactions and the movement of goods and products. VeChain uses two tokens, VeChain Token (VET) and VeThor Token (VTHO), to power its platform. VET is used as a form of currency to pay for transaction fees and other services on the network, while VTHO is used to pay for smart contract execution and other computational tasks. Additionally, VeChain uses a unique consensus mechanism called “Proof of Authority” (PoA) which is a form of consensus mechanism that is based on identity and reputation, rather than computational power.
Proof of Authority
Proof of Authority (PoA) is a consensus mechanism used in blockchain networks to validate transactions and add new blocks to the blockchain. It is a variant of the Proof of Stake (PoS) mechanism, but with a different approach for validating transactions.
In PoA, a set of pre-selected “validators” or “authorities” are responsible for validating transactions and adding new blocks to the blockchain. These validators are chosen based on their reputation and are required to have a certain level of technical expertise or have a vested interest in the network. These validators are also required to have a unique digital identity, which is verified by a central entity, to prevent Sybil attacks.
PoA is often used in private or consortium blockchains, where the network is operated and controlled by a group of known and trusted participants. This makes it ideal for use cases such as supply chain management, voting systems, and other applications where the participants are known and trusted.
PoA is considered to be more secure and efficient than traditional PoW (Proof of Work) consensus mechanisms, as it eliminates the need for expensive mining equipment and reduces the amount of energy required to validate transactions. However, it is also considered to be less decentralized than PoS or PoW, as the validators are pre-selected and the network is controlled by a group of known and trusted participants.
Should you Buy VeChain?
VeChain has been gaining popularity among cryptocurrency investors and has a solid reputation in its field of application, which is supply chain management. The platform has a number of partnerships with well-known companies, which is a positive sign. The platform has been growing consistently, and the team behind it is experienced and has a strong track record of delivering on its promises.
