The need to invest in the blockchain technology has been noticed by many potential investors due to the various benefits that include the elimination of the third party system and the fast transaction times. These benefits have created a jealous-act from other online financial institutions along with various misconceptions amongst other schools of thought.
The Vechain cryptocurrency also known as ‘VeChain Thor’ uses a dual-token system blockchain technology which is built on the smart contract of the Ethereum network. This article will address the Vechain cryptocurrency, how it works, how to secure VeChain coin, and if any possible mining actions exist.
The History of VeChain
The VeChain cryptocurrency is not as old as what people think, but with the existence of three years in The Cryptosphere, they have had tremendous growth.
The VeChain Foundation, based in Singapore was founded in 2015. However, trading was not in full action not until August 2017. From the time when the trading of its block started in 2017 to early 2018, they have since become the 17th largest cryptocurrency in the world. Its growth was propelled by different partners of companies in various industries such as in agriculture, food, drugs and logistics. This spread led to the opening of more offices in Paris and Singapore.
The VeChain Foundation plays a vital aspect to the growth of the VeChain cryptocurrency when concerning the construction of the network and development. This foundation helps to promote its blockchain technology to a series of businesses and how it could help them in terms of the payment modalities, the securing of funds, and the smart contract protocol. VeChain has also been able to partner with Microsoft, BitOcean, PwC, Hyperledge and a host of others.
What is VeChain?
The VeChain Network is built on a blockchain technology. This technology is designed to facilitate the supply chain processes with the use of blockchain. This system was solely built for the enterprise system of business for authentication of products bought, services rendered, and also for the keeping of daily transactions for the supply chain management.
The VeChain Network also has a dual token system to ensure a smooth operation for its blockchain technology. They are Thor Token and VET Token. These two token systems have created more confusion among The Cryptoshpere on how they operate and the purpose of their creation
- Thor Token; The Thor Token is the secondary currency of the VeChain network. This token functions on the backend of the entire Network process. They are designed to ensure that daily transactions are working at their best and prevent system breakdown. Permission to these tokens is granted only to owners of VET tokens as an exchange for their staking process in the entire network.
- VET Token; The VET Token is the primary currency of the entire network. It is made available to all users in the network. It can be used to stake and run masternodes within the network.
Benefits of VeChain Cryptocurrency
Many benefits come with the VeChain cryptocoin that include;
The introduction of this two-coin system was made to sustain the stability and flexibility of the VeChain coin. This also helps to reduce payment of high fees during transactions.
Also, the assigning of IDs to products allows manufacturers and businesses to track the movement of their products through the supply chain system. This identity system uses the VeChain Identity VID to mark and track all movement.
The use of smart contract to represent ownership
With the use of a smart contract, the owners of a product need not be there. This means that owners and manufacturers of certain products can be represented digitally through smart contracts on the platform.
High level of Security
Having a robust blockchain technology used needs high-level security to ensure safe assets. The use of networking nodes employed by VeChain help to maintain security. Security levels like ensuring the safety of your wallet and the maximum security in the movement of goods on the supply chain have been employed in the VeChain network.
VeChain and its Market Cap
The Vechain Cryptocurrency (VET) has a total supply of about 86 billion VET, but currently, it has a circulating supply of about 55 billion VET. It currently ranks 23 in the cryptocurrency financial market and its market cap is about 260 million USD which is 65583BTC.
A Guide to Owning your VeChain Coin
VeChain coins can be owned through a different process. But before buying a VeChain coin, owning a wallet is the first approach. Wallets include;
VeChain Thor Wallet
This wallet is a light mobile wallet for securing your VET for the long-term or short or long-term. With the use of this wallet, it permits the user to undergo a token swap; transferring of X Node status from Ethereum to VeChain wallet. The VeChain Thor wallet is also supported by IOS, Android, Ledger, and Vechain hardware wallet.
Ledger Nano S
This is a Vechain cryptocurrency hardware wallet. It is used for storing VET for long-term use and is a multicurrency (with up to 40 cryptocurrencies) hardware wallet. It is built with the use of the chip mechanism to guarantee a high level of security. This hardware is built to be able to recover lost data even in the case of theft.
The above wallet helps to secure VET before buying. To get access to owning your Vechain, the exchange of cryptocurrency is the easiest and most accessible way to secure Vechain. This process allows you to first secure your Bitcoin or Ethereum before using your cryptocurrency exchange.
A cryptocurrency exchange like CoinSwitch, Huobi, and Cointree can perform exchange services. This first requires you to create an account on the exchange platform, deposit funds into the exchange account in bitcoin and purchase VET by looking for the exchange pair VET/BTC. But note that each exchange process requires hidden charges.
How to mine VeChain?
When VeChain came on board, more than 40% of its tokens were distributed through Crowdsale, and its profits were used to sustain its foundation making it difficult for the mining operation to take place. But that does not mean you cannot hold VeChain VET.