VeChain is an enterprise-grade public blockchain platform that aims to enhance global supply chain management and business operations through enhanced tracking, tracing and verification enabled by cutting-edge cryptography, IoT integration and advanced analytics tools.
The native VeChain Token (VET) powers all value transactions across the network. Since launching in 2015, VeChain has seen tremendous adoption making it one of the top blockchain networks today in terms of real-world business usage.
In this detailed guide, we explore what makes VeChain unique, how its technology functions, some example use cases of its supply chain solutions, avenues to purchase VET and more to equip you with everything required to understand this highly promising blockchain project.
An Overview of VeChain and VET Coin
VeChain was launched in 2015 by Sunny Lu – former CIO of Louis Vuitton China – with the vision of bringing transparency and immutability benefits enabled by blockchain technology to global supply chains. Supply chain operations tend to span across multiple entities which leads to issues like:
- Lack of coordination between suppliers, manufacturers, distributors and retailers
- Manual paperwork slowing inventory management
- Difficulty tracking assets in real-time across stages
- Counterfeits entering at various points due to fragmented systems
To address these challenges, VeChain employs Internet of Things (IoT) devices, advanced analytics and artificial intelligence layered on its VeChainThor blockchain network to deliver a comprehensive, integrated and plug-and-play supply chain ecosystem for enterprises.
The VeChain Token aka VET coin is the underlying smart payment currency that powers value exchange within this ecosystem. Businesses use VET coins to pay for supply chain solutions offered on the VeChainThor platform. At the same time, VET token holders act as validators maintaining consensus and security similar to miners on Bitcoin or Ethereum.
Here are some key details about the VET crypto token:
| Metric | Value |
|---|---|
| Launch Date | June 2018 |
| Total Supply | 86.7 Billion |
| Current Circulating Supply | 64.3 Billion |
| Consensus Mechanism | Proof of Authority |
| Average Transaction Fee | $0.001 |
Now let‘s analyze some of VeChain‘s technology components and solutions in more detail.
The VeChainThor Public Blockchain
The VeChainThor blockchain forms the foundational network facilitating end-to-end supply chain activities – from tracking materials/ingredients sourced by farmers/producers to monitoring manufacturing, inventory flows between warehouses to verifying final product delivery to retail stores and consumers.
Some key aspects of how VeChainThor enables this ecosystem:
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It uses a Proof of Authority (PoA) consensus mechanism rather than energy-intensive Proof of Work. 101 Authority Masternodes maintained by known, trusted entities validate transactions. This delivers faster throughput compared to Bitcoin while enhancing security too.
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VeChain employs patented IoT devices to enable real-time monitoring of suppliers, logistics vehicles transporting goods and warehouses storing finished products. Temperature, location, humidity and other metrics provide end-to-end visibility.
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Every product receives a unique Digital Passport storing metadata like manufacturing date, ingredients, transit/storage temperature, certifications, quality checks and more. This creates Digital Identities for physical items on the blockchain which can be traced across the supply chain journey with full transparency.
| Metric | Statistics |
|---|---|
| Launch Date | June 2018 |
| Transactions per second | 10,000+ |
| Average transaction fee | $0.001 |
| Authority Nodes | 101 |
| Enterprises with adoption | 10,000+ worldwide |
VeChainThor essentially connects the entire spectrum of supply chain entities – from constituent suppliers to final distributors and delivery firms. This enhances transparency, ensures authenticity and prevents counterfeit or substandard products from reaching the end consumer.
Now let‘s analyze some real-world applications of VeChain‘s solutions.
Supply Chain Use Cases and Enterprise Adoption
While most public blockchains like Ethereum are still struggling to find traction among large businesses, VeChain stands out for its numerous partnerships and deployments across industry verticals like luxury, retail, automotive, pharmaceuticals and more.
According to CoinTelegraph Research, enterprises are looking to deploy blockchain solutions delivering an average ROI of $9.65 for every $1 spent over the next five years. Supply chain is the dominant application area accounting for nearly 50% of corporate blockchain budgets currently.
This underscores the huge market potential for platforms like VeChain with proven real-world functionality – particularly in enhancing large-scale supply chain operations.
Here are some examples of how global brands across sectors leverage VeChain today:
Walmart China
Walmart China partnered with VeChain, PwC and Inner Mongolia Kerchin Chain to launch the Walmart China Blockchain Traceability Platform in 2019. Powered by the VeChainThor blockchain, it tracks fresh meat products from source, logistics journey through processing and storage to in-store stocking. Customers can scan products on the shelf and instantly view delivery details, inspection certificates as well as on-chain movement history for enhanced transparency.
Key Statistics
- 23 product lines tracked currently representing over 100 SKUs
- Traced sales up 500% since launch in 2019
- Plan to scale platform to cover 50% products sold in Walmart China by 2023
DNV – My Story
DNV is a global quality assurance and risk management company serving the maritime, renewable energy and healthcare industries. In 2018, it co-developed the My Story solution with VeChain powered by VET tokens and IoT sensors – which allows enterprises to digitally manage their brand reputation and product histories.
For instance, DNV partnered with Italian wine maker Ricci Curbastro to tag blockchain-powered sensors on wine bottles sold directly to buyers. Customers can scan bottle tags to access key product details, view supply chain journey as well as previous inspection records thereby improving confidence and brand loyalty.
Givenchy
In 2019, luxury fashion house Givenchy launched its new sneaker collection called "The Legend Sneaker" with two exclusive styles – red and black designed by artistic director Clare Waight Keller. Each pair was tagged with VeChain and iTaotaoke Joint Solutions and registered on the blockchain to track authenticity and lifetime ownership.
Buyers could obtain externally verified certifications of authenticity by scanning the shoes‘ embedded NFC microchips via a smartphone app. If the shoes changed hands, provenance is updated transparently for all future owners thereby retaining value and uniqueness of the luxury goods.
BMW
At BMW Group‘s 31st BMW IT Tech Forum in 2019, it announced VerifyCar – a digital passport solution running on the VeChainThor blockchain which stores each vehicle‘s manufacturing history including supply parts, inspection records and more.
Customers and partners like dealerships, financing providers and insurers can scan a vehicle to access its digital identity stored on chain – including usage history across owners, servicing documents, ownership changes etc. providing greater transparency and credibility.
VeChain Adoption Metrics
VeChain‘s impressive growth across industries and geographies is best highlighted through hard data on adoption over the last 2 years:
| Metric | 2020 | 2022 | Increase |
|---|---|---|---|
| Total Transactions | 1.8 million | 71 million | +3900% |
| Partners | 104 | 195 | +87.5% |
| Enterprise Users | 2000 | 10,000+ | +500% |
| VET Value Transacted | $100+ million | $800+ million | +800% |
What gives VeChain this traction among global businesses?
For starters, it is laser focused on resolving critical challenges around supply chain networks, product safety & authenticity and connecting disparate systems using technologies like RFID, NFC and IoT that enterprises are already investing in.
Secondly, VeChain offers turnkey SaaS solutions requiring no deep blockchain expertise to implement unlike working with raw smart contract platforms. The ToolChain suite offers templates that facilitate rapid solution deployment across diverse industries.
As the data reveals, these factors have directly translated to the real world with VET coin facilitating growing value transfers as more users and solutions get onboard VeChain every single day.
Future Outlook and VET Investment Potential
In the last year alone, VET value transacted has grown by nearly 800% while partners integrating VeChainThor solutions are up almost 90%. This phenomenal growth is likely to accelerate as industries digitize supply chains to minimize costs and risks in an increasingly globalized economy.
Total spending on supply chain technology is projected to reach $57 billion by 2025 according to Interact Analysis. Within this shift, transparency solutions leveraging blockchain and enterprise IoT remain top investment priorities for 78% of IT supply chain executives according to Gartner‘s 2022 Future of Supply Chain Survey.
Such trends highlight the massive addressable market for offerings like VeChain as well as the growth potential for the VET cryptocurrency as more activity shifts onto the underlying blockchain infrastructure. Here is the historic price trend for VET coin:
| Year | Average Price | Year End Price | Annual Growth |
|---|---|---|---|
| 2018 | $1.99 | $0.003 | -99.8% |
| 2019 | $0.0047 | $0.005 | +60% |
| 2020 | $0.015 | $0.018 | +260% |
| 2021 | $0.1 | $0.09 | +400% |
| 2022 | $0.03 | -66% YTD |
Like most crypto assets, VET has witnessed extreme volatility since inception. But despite price fluctuations, network usage and utility has only kept growing as evident from the adoption metrics shared earlier.
As blockchain applications expand across the global economy over the next decade, native tokens powering leading smart contract platforms like VeChainThor should likely appreciate considerably in value.
For investors who believe in the long-term impact of blockchain transforming supply chains through enhanced transparency, VET presents an attractive option to gain portfolio exposure to this high-growth industry.
Now let‘s explore avenues for acquiring and storing VET tokens.
How to Obtain, Buy and Store VET
There are a few options to obtain VET coins:
1. Buy from an Exchange
VET is now listed on major centralized exchanges like Binance, Coinbase and KuCoin. To buy it, you need to:
- Sign up and complete Know Your Customer (KYC) verification
- Deposit funds via bank transfer or credit card
- Finally purchase VET at current market rates
2. From a Crypto Wallet
Wallets like Atomic and Exodus now allow in-app crypto purchases via Apple Pay, credit card or bank transfers. This means you can directly buy VET coins from such multi-currency wallet apps easily.
3. Store VET Safely
For everyday holdings, web and mobile options like VeChainThor Wallet work fine. For secure long term storage, hardware wallets like Ledger and Trezor provide unmatched protection via offline cold storage.
When exploring channels for obtaining and storing crypto assets like VET, it‘s vital to conduct thorough due diligence on factors like security, costs, user protections and controls across options before finalizing your purchase and custodian decisions.
Conclusion
VeChain aims to revolutionize global supply chain transparency by bringing immutability, traceability and trust enabled by blockchain to solve real business problems faced by today‘s enterprises.
Its expanding roster of partners and clients provides strong validation of VeChain‘s ability to create value – boosting the investment appeal for its VET token from a usage and adoption standpoint regardless of price volatility.
For both businesses seeking to optimize operations as well as investors looking to diversify portfolios, VeChain checks all the boxes as an enterprise-grade blockchain ecosystem well positioned for the digital future.
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