VeChain (VET) is a decentralised blockchain platform developed to facilitate more efficient supply chain management and business processes. To enhance these sectors, the VeChain blockchain platform streamlines the flow of information through the use of distributed ledger technology (DLT) for complex supply chains.
VET is not the only digital asset on the platform. The VeChain blockchain system also uses VeChain Thor Energy (VTHO).
VeChain developers are looking to develop the platform further to provide hosting for ICOs and process transactions between devices connected through the Internet-of-Things (IoT).
What Is VET?
The supply chain data used in business processes is highly fragmented among various stakeholders. The main idea behind the VeChain project is to create a trust-free platform with a transparent information flow. To accommodate business processes, VeChain is set to offer more efficient collaboration and instant blockchain-based payments with a focus on business requirements.
VET was previously branded as VEN cryptocurrency, and the crypto was hosted on the Ethereum blockchain. After the launch of the VeChain mainnet, VEN was rebranded to VeChain Thor blockchain (VET) in 2018.
The main objective of the blockchain project is to transform supply chain management by making data accessible to all authorised stakeholders while being transparent and actionable. VeChain blockchain is intended for mass adoption in the business sector.
The network uses Proof-of-Authority (PoA) consensus protocol. The protocol is based on stakeholders and masternodes, with the votes on the network based on disclosure and the number of VET units. Stakeholders with one million VET tokens held on their account and no KYC receive 20% voting power. Holders with one million VET units and with KYC are assigned 30% voting power.
The network depends on 101 masternodes. Transactions are verified and validated when all nodes reach consensus. The authority masternode cannot be anonymous, so identity disclosure is required.
VET and Supply Chain
Through the VeChain platform, businesses, and supply chain managers are granted access to all information, including transportation, supply, and storage. This information will be accessible to authorised stakeholders who can then create transparency on the chain. VeChain is also focused on returning the ownership of data to true owners and making that data available for owners’ use. The platform can track all supply chain management factors, including storage temperature, quality of products, transportation, and other important information related to the status of products.
The VeChain blockchain platform uses Radio Frequency Identification (RFID) sensors to broadcast key information related to the supply chain. Users of the network can access this information in real-time. This infrastructure creates more favourable conditions for efficient monitoring and tracking of products and product information.
The ultimate goal of the platform is to enable integration and connection between the blockchain and IoT devices. VeChain governance and the network infrastructure aim to resolve issues with inefficient monitoring and tracking of business information and supply chain management through essential partnerships outside the blockchain sector.