VeChain Thor is a blockchain platform harnessing the power of smart contracts to solve issues in the supply chain. The platform is public and specializes in enabling businesses to track their products from manufacture to use. This reduces the chances of counterfeiting. This guide to Vechain Thor (VET) will explain all you need to know about how the team will accomplish this goal.
To ease the process, VeChain allows companies to use electronic labels on their products. For example, the tags maybe RFID or NFC enabled.
Solving Product Counterfeiting Through Smart Contracts
The platform brought in a new economic model that is capable of predicting conditions in the business circles and prepares stability solutions for the companies using the blockchain platform.
The economic system allows two native tokens, VET and VTHO, to run on the same platform but with distinct usage.
VeChain Thor’s development team introduced the system to help guard transaction fees against price fluctuations.
The platform uses in-house developed smart chips that utilize QR codes, RFID, and NFC technology to keep track of products from source to destination. Apart from protecting goods against counterfeiting, the VeChain Thor platform can accommodate products geared towards the logistics aspect of the supply chain.
A Brief History of VET
The VET platform started as VEN in 2015 as an ERC-20 token on the Ethereum blockchain and launched an Initial Coin Offering by the end of the second quarter of 2017. The ICO raised approximately $20 million which were used to migrate VEN to its own blockchain and shifted from being VEN (VeChain) to VET (VeChain Thor).
Developers on the VET platform are scattered across the globe but headed by Sunny Lu, the VeChain Foundation CEO.
The VET blockchain employs the Proof-of-Authority consensus algorithm. This algorithm is mostly used in blockchain projects that are not completely decentralized in their functioning.
Therefore, with VeChain Thor’s blockchain, 101 predetermined nodes are used to validate transactions. Also, the platform has extra nodes for keeping the blockchain in check.
All the nodes on the network are rewarded using VTHO tokens. However, these tokens are distributed according to their maturity days and the number of VET tokens in their wallets.
Following these guidelines, the VET platform has 4 categories of nodes i.e Strength (10 day maturity and 1M VET coins), Thunder (20 day maturity and 5M VET coins), Mjolner Masternodes (30 day maturity and 15M VET coins), and Thrudheim Masternodes (maturity started on 21st Dec 2017 and should have a minimum of 25M VET coins).
The first three types are economic nodes and are rewarded by the VeChain foundation. The fourth category of nodes attain the same rewards as the other nodes but also takes 30 percent of all VTHO used in transactions on the VET platform.
Difference Between VET and VTHO Tokens
The difference between the two tokens is in their usage on the network. The VET tokens are used for transaction costs. The more VET tokens a user holds, the higher the priority the user gets on the system.
The VTHO tokens are used as permission to run decentralized applications on the VeChain Thor Blockchain. VTHO tokens are generated from the VET token at a rate of 0.000432 VTHO per VET per day.
VET’s Future Goals
VET’s blockchain has already been endorsed by the Chinese government specifically the Gui’an government to power its smart city initiative. The Gui’an government will use the VET platform to develop tracing solutions for the energy and wine industries.
VeChain Thor is seeking to create a comprehensive vaccine tracking system to help China curb sub-standard vaccines from getting into the market. The project will also help uproot vaccine manufacturers who falsely label vaccines.
To read more about Vechain Thor project, check out the official price prediction article for VET, and check back for regular updates. You can read our additional post on Three Reasons Why VET Could Rebound Soon, as well as a technical analysis on VET trading pairs.
Interested in buying VET? You can learn how to do so using the Guide to Buying VET on Binance.