The project we’re looking at today has had a lot of changes in the past week and more events are still to come. With this article, we’re going to be examining VeChain. Specifically, I wanted to talk about some introductory details of the project, what the hell is going on with all these new tokens, airdrops, and X Nodes, and finish up with some details about the capabilities of the VeChain Main Net.
Before we hop into all the news surrounding VeChain let’s start out with a brief summary of VeChain and what the goals of the project are. VeChain is of course a blockchain project that is targeting supply chain management as one of its primary use cases. Because of its focus on supply chains and helping businesses (luxury goods and wines are often spoken about here) VeChain has been called the “Ethereum for businesses.”
VeChain will make use of RFID/QR technology for the verification of products and that supply chain management. What will essentially be occurring is the digitization of physical goods and having their information stored on the blockchain for supply and anti-counterfeiting purposes. Because of that, the immutable blockchain ledger makes perfect sense as a solution. For these reasons and they numerous partnerships of the project many people are quite bullish on the VeChain project long term. Now that we have a basic understanding of what VeChain is looking to accomplish we can examine what they’re doing right now.
There has been a lot of changes to VeChain in the past month or two that I would like to focus on for this next section. First and foremost, VeChain launched its Mainnet called VeChain Thor back on June 30th successfully migrating off of the Ethereum network. Before that switch VeChain was operating off of the Ethereum network and used the VEN ERC20 token.
VeChain Thor will function with a two token model. Those two tokens are VET and VTHO and here is where we get into the token swaps and airdrops. Although the VeChain mainnet was launched back on June 30th the VET token was not swapped out yet. VeChain took a measured approach of launching and swapping in steps instead of all at once and to make sure exchanges had time to make proper announcements and make people aware. The VEN to VET snapshot took place on July 23rd on Binance and the swapping ratio for all is 1 VEN = 100 VET so if a user had 10 VEN they would receive 1000 VET. That swap was supported across a variety of exchanges as well as the official VET wallet that was released back on July 9th. For current instructions regarding swapping from VEN to VET if you missed the swap on an exchange please see this guide and this FAQ.
Following VET we have VTHO. VTHO is the “gas” of the VeChain mainnet and will be used to pay for smart contract execution. Furthermore, when those payments are made 70% of the VTHO is destroyed and the remainder will be given to authority nodes as rewards. Each VET a user holds generates 0.000432 VTHO each day. That is a base rate and is what any holder will receive before calculating in any node rewards. It should also be noted that holding VET on exchanges does not entitle the holder to any additional node rewards. VET must be kept in a wallet separate from an exchange to earn early bird/bonus VTHO.
There are two exchanges that I have seen that support the VTHO awards to VET holders. Those exchanges are Binance and LBank. Binance stated it would give out VTHO monthly and LBank would give out VTHO daily. In addition, LBank also has VTHO open for trading.
Lastly, we have X Nodes and the transferring of them from VEN to VET. With VeChain there are two types of nodes authority nodes and economic nodes. Authority nodes required 250k VET while economic nodes were broken down between 150K VET, 50K VET, and 10K VET.
The quick summary of this system is first that it’s not possible to get an X-node anymore the deadline for that was back in March. If you’re one of the individuals with an X-node you’re going to need to bind your node to a wallet or ledger application before August 10th. To accomplish that you will need at least 0.1 ERC20 VEN and have it in an intermediary address. This binding is not accomplished with the new VET. For full details regarding how binding is accomplished please see these this article. Those are summary details of how the entire swap process has gone on. If you have any additional questions regarding VET and the new tokens I would hop on over to the VeChain subreddit as it has a lengthy FAQ with plenty of information.
The above is a lot to take in even in a summarized fashion as there is a great amount of information floating around in disparate articles and blog posts. Once again I would highly suggest taking a look at the links provided if you have any more questions regarding any of the swaps.
With all of that out of the way now though, I can finally talk a little bit about all the awesome stuff that VeChain is doing. The VeChain feature I wanted to cover here is a first ever for blockchain with VeChain accomplishing a multi-party, multi-clause transaction. In other words, I can send money to multiple people at once and have each person receive that money based on individual requirements for execution. This feature allows VeChain to better work with its primary client of companies and accomplishes a task that is not possible with other blockchains. The use cases for that are quite widespread and consist of everyday situations such as an employer paying out their payroll or having to split a check and pay multiple people at once. That feature on the blockchain is made possible through what VeChain calls their Multi-Party Payment Protocol (MPP) and its really not even the best part.
The awesome part of all of that is an underlying mechanism for payment and smart contracts. In this system VeChain revolutionizes the sending of transactions since there are three different parties that can now pay the transaction fee. Those three parties are the sender, the smart contract’s recipient, or the sponsor of the smart contract. With existing blockchain networks like Bitcoin or any other when sending a transaction that transaction is sent to the network and the fee is paid by the sender.
What this system does is open up blockchain systems for mass adoption without a need to mass adopt the currency. Here is an example of what I mean. Gucci decides to work with VeChain and use their blockchain for anti-counterfeiting measures. A user goes and buys a Gucci handbag and has no knowledge of cryptocurrency or VeChain, but of course they buy Gucci because they can be assured their handbag is legitimate and its marketed as such. The individuals purchases the handbag and then can go and register that they are the owner of the handbag. That ownership is registered to the blockchain and now there is a verifiable record of that handbag being sold and who the correct owner is.
Previously that verification step would require the purchaser of the handbag to submit their transaction to the blockchain (requiring tokens), but with VeChain Gucci can arrange for the fee to be paid using their VET wallet instead of the individual submitting their purchase to the blockchain essentially removing any need for them to understand or have knowledge of crypto in the first place. They will be using crypto and blockchain technology without even knowing it and the upside to the company in terms of marketing is massive (let alone the supply chain benefits of VeChain).
What we have to look forward to in the future for VeChain is crosschain and sidechain technology meaning interactions with other blockchains such as Bitcoin or Ethereum. Furthermore, VeChain had its first ICO launch back in May with Plair. I would guess more will be coming with the token swap having occurred and the frenzy and issues of that being resolved. Additionally, VeChain will be producing dApps to increase their uses by corporations. The first of which will be VeVid or VeChain Verified Identification and will be used for member identification and KYC in the system. There’s quite a lot to talk about regarding the future of VeChain and there roadmap (below) is sparse, but the above are a few things to look out for on the horizon.
I’m omitting the exchange and price section due to the swap. For information regarding exchanges I would use coinmarketcap.com.
Please see the following links to learn more about VeChain
Website — https://www.vechain.org/
Reddit — https://www.reddit.com/r/Vechain/
Twitter — https://twitter.com/vechainofficial
Medium — https://medium.com/@vechainofficial
VeChain is a monster project with a lot going on. I didn’t even scrape the surface really of all that’s going on with the project. Here are some concluding points to summarize the article. VeChain itself is made to be used by large companies and provide solutions for supply chains and other product centric areas. VeChain released its mainnet called VeChain Thor back in June and recently conducted their token swap from the ERC20 VEN to the native VET. There is a two token comprised of VET and VTHO where VTHO functions similar to GAS on the NEO network. This new blockchain also makes use of masternodes which cannot be acquired at this time but for those who did they can through node binding.
I myself think the project is awesome and chose to focus on the new multi-party, multi-clause transactions as well as the underlying protocols making that possible and their implications. Overall, I believe it to be one of the most exciting features in a blockchain and VeChain itself has a lot more going on than I’m able to cover in one article.
Thank you for reading today’s article, it’s been delayed a couple of days and I believe the wait has been worth it. My article schedule for next week will be released later tonight. As always follow me on here or on Twitter @thant1194or on InvestFeed @thant11 in order to remain up to date on all my articles as I release them. I am not associated with the VeChain project and I am a holder of VET. Thank you again! I have to return some video tapes.
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