Cryptocurrency Information Bureau | Currency Introduction | What is the enterprise blockchain VeChain (VET)? Check out supply chain management, price predictions, and beginner-friendly explanations! #VeChain #VET #Cryptocurrency
Video explanation
What is VeChain (VET)? A beginner-friendly explanation!
Hello, and welcome to the world of virtual currencies! I'm John, a veteran blog writer. Today, I'd like to talk about virtual currencies, which are attracting a lot of attention, especially in the business world.VeChain" and its native token "VET" I will explain it in an easy-to-understand way so that even complete beginners can understand it. Let's take a look at what problems VeChain is trying to solve and what kind of future it is aiming for! I will also introduce some information about price predictions for 2025, so please stay with me until the end.
Basic information about VeChain (VET)
First, let’s start by understanding the basics of what kind of project VeChain is.
- Quick Overview: VeChain is a platform that aims to solve the problems faced by companies and organizations using blockchain technology (a distributed recording technology that makes it extremely difficult to tamper with information once it has been recorded). In particular, they are focusing on product supply chain management (managing the flow of products from producers to consumers), counterfeiting measures, and improving data transparency.
- Problem to be solved: For example, by recording information such as whether luxury brand goods are genuine or whether food has been transported via a safe route on the blockchain, anyone can check it, which increases reliability. In the past, there was a risk that information was not transparent or was tampered with along the way, but VeChain is trying to solve such problems.
- Unique Features: A major feature of VeChain is that it places great importance on use in the real world.Dual Token System(a system that uses two types of coins) and has two tokens, VET and VTHO. I will explain this in more detail later. And the consensus algorithm (the rules for approving transactions) is "Proof of Authority (PoA)” (proof of authority, a mechanism in which only selected approvers verify transactions), providing efficiency and scalability (high processing power) suitable for enterprise use.
VeChain (VET) Supply: What is the Impact on Price?
The supply of a cryptocurrency is a very important factor when considering its price. What about VET?
- Maximum Supply and Current CirculationThe maximum supply of VET isApproximately 867 billion VETAs of 2024, the majority of the circulating supply is already on the market. The fact that the maximum supply is fixed means that they will not be issued infinitely, which could lead to scarcity.
- Why is this important?: If the supply is limited, the price is more likely to rise if demand increases. Conversely, if the supply is too large, the value of each unit tends to be difficult to increase. VET is used for various activities on the VeChainThor Blockchain (for example, executing smart contracts and approving transactions), so the more active the platform is, the more demand for VET is likely to increase. In addition, when you hold VET, the mechanism by which another token, VTHO, is periodically generated also affects the value of VET.
The technical structure of VeChain (VET)
Now, let’s take a closer look at the technology behind VeChain. “Blockchain” may sound complicated, but the basic concept is simple.
First,Block chainIt is a technology that organizes many transaction records into units called "blocks" and stores them in chronological order, like a "chain." These records are stored in distributed computers around the world, so even if some computers fail or are attacked maliciously, there is an extremely low risk that the entire record will be lost or tampered with. It may be easier to understand if you think of it as a "digital ledger."
VeChain is a blockchain-based "VeChainThor Blockchain" It has a unique platform, and has the following special technical features:
- Proof of Authority (PoA) consensus algorithm: In many blockchains, in order to verify and approve the correctness of a transaction, a complex computational contest (Proof of Work) or the holding of a large number of coins (Proof of Stake) is required. However, the PoA adopted by VeChain uses "Authority MasternodesTransactions are approved by "authoritative masternodes" (special computers that verify and approve transactions). This allows for fast processing speeds and low energy consumption, making it an efficient system for businesses to use. However, some say that since there are only a limited number of approvers, it is more centralized (closer to having an administrator) than other systems.
- Dual Token System (VET & VTHO): This is what makes VeChain so unique.
- VET (VeChain Token): The token that holds the main value of the VeChain platform. By holding VET, you can obtain various rights within the VeChain network (for example, participation in governance) and generate another token, VTHO. In a sense, it may be similar to the image of a "stock" in the VeChain economic sphere.
- VTHO (VeThor Token): It is used as a "gas fee" (fee) paid when conducting transactions on the VeChainThor Blockchain or executing smart contracts (automated contract execution programs). If you hold VET, VTHO is automatically generated, so you may be able to cover transaction fees just by holding VET. This mechanism allows companies to use the blockchain at a stable cost without directly reflecting the risk of VET price fluctuations in transaction costs. For example, even if the price of VET fluctuates greatly, the actual transaction cost can be kept somewhat predictable by adjusting the price and generation of VTHO.
Team and Community
The power of the team and community that drives any project is extremely important. What about VeChain?
- Reliability: One of the founders of VeChainSunny LuFormerly serving as CIO (Chief Information Officer) of Louis Vuitton China, he has extensive experience in the business world. This experience is the reason why VeChain is focusing on developing solutions for enterprises. The project is also run by the VeChain Foundation, which has strategic partnerships with major companies such as PwC (PricewaterhouseCoopers, a global consulting firm) and DNV (a global third-party certification body). These partnerships are proof that VeChain's technology and solutions are trusted and used in the real world.
- Activity level: VeChain actively communicates project progress, new partnerships, technical updates, etc. through social media (such as X (formerly Twitter)) and the official blog. The community is also active and has many supporters around the world. Development activity is also ongoing, with new tools and features being released regularly.
Use cases and future prospects
In what specific areas is VeChain being used, and what is its future goal? This may be the most exciting part of VeChain.
- Supply Chain Management: This is one of VeChain's areas of expertise. Products are fitted with NFC chips (IC chips using near field communication technology) or QR codes, and information is recorded on the VeChainThor Blockchain at each stage from production to distribution and sales. This allows consumers to easily track whether a product is genuine and where it came from. For example, it is used to prevent the origin of wine from being counterfeited and to determine the authenticity of luxury bags. A well-known example is that Walmart China has adopted VeChain's technology for the tracking system of some of its products.
- food safety: Food safety is improved by recording the place of production, processing date, transportation status, etc. of food. In the unlikely event that a problem occurs, the cause can be quickly identified and traced.
- Medical / healthcare: It will track the supply chain of medicines and medical devices to prevent counterfeits and illegal distribution. It is also expected to be used as a platform for safely managing and sharing personal health data.
- Sustainability/Carbon Footprint Tracking: Efforts are also underway to track and manage the amount of carbon dioxide emitted by companies and individuals (carbon footprints) on the blockchain and increase transparency. This aims to promote environmentally conscious behavior. One part of this is the creation of an ecosystem called "VeBetterDAO" that encourages better behavior.
- Potential applications for DeFi (decentralized finance) and payments: Although VeChain is primarily focused on solutions for businesses, its technology platform can also be applied to DeFi (financial services without centralized administrators such as banks) and payment systems. As the ecosystem expands in the future, we expect to see development in these areas.
- Outlook for 2025: According to many experts and market analysts, 2025 will be the year when blockchain projects with practical use cases will be further evaluated (see the "Expert Opinion/Analysis" section below for more details). VeChain is likely to benefit from this trend as it has already partnered with many real-world companies and provided concrete solutions. In particular, with the growing interest in supply chain transparency and sustainability, VeChain's technology will become increasingly important.
Comparison with competitors: VeChain (VET)’s strengths
Besides VeChain, there are several other projects in the enterprise blockchain space, such as IBM Food Trust (which is not strictly a cryptocurrency project, but an enterprise blockchain solution), Waltonchain (WTC), OriginTrail (TRAC), etc. Compared to these projects, what are the advantages of VeChain?
- Established partnerships and real-world use cases: We have a strong track record of working with well-known global companies such as PwC, DNV, BMW, Renault, Walmart China, and others, and our solutions have been implemented in practice, which shows that VeChain's technology is practical and can meet the needs of enterprises.
- Designed specifically for enterprise needsThe high processing power and low transaction costs of the PoA consensus algorithm, along with the stabilization of transaction costs through the dual token system, lower the barrier for companies to adopt blockchain technology.
- ToolChain™ Platform: VeChain provides a platform called ToolChain™ that enables businesses to quickly build and deploy blockchain-based solutions without specialized knowledge, making it easier for businesses across a wide range of industries to take advantage of VeChain's technology.
- Focus on sustainabilityIn recent years, as interest in the SDGs (Sustainable Development Goals) and ESG (Environmental, Social, and Governance) management has grown, VeChain has been actively developing use cases that contribute to sustainability, such as carbon footprint tracking, which can be said to be a strength that is in line with the times.
Risks and Cautions
VeChain (VET) is a very promising project, however, investing and involvement in cryptocurrencies also comes with some risks and caveats, which are very important to understand.
- Price Fluctuation Risk: This is a risk that is common to all virtual currencies, not just VET. Prices may fluctuate significantly due to various factors, including market conditions, news, and regulatory trends.
- Risk of fraud and hacking: Unfortunately, in the world of virtual currencies, there are fraudulent projects and phishing scams (methods to steal information by directing users to fake websites). Be careful of information from non-official sites and stories that sound too good to be true. There is also a non-zero risk of exchanges and personal wallets (where virtual currencies are stored) being hacked.
- Regulatory uncertainty: Legal regulations in each country regarding virtual currencies and blockchain technology are still in the process of development. It is necessary to take into account the possibility that new regulations may be introduced in the future, which may affect the operation of the project and the value of VET.
- Concerns about the PoA consensus algorithm: While PoA is efficient, it has been pointed out that it is more centralized than other decentralized systems (such as Bitcoin's Proof of Work) because the number of validators is limited. This can lead to concerns about the risk of power being concentrated in a few validators and the risk of censorship (the intentional elimination of certain transactions). The VeChain Foundation is working to improve the transparency of governance, but this point should be understood.
- Project progress and hiring delaysNo matter how great the technology or plan, there is always a risk that it will not be adopted in actual business as expected or that development will be delayed.
It is important that you understand these risks and act at your own discretion and responsibility.
Expert opinion and analysis (including price forecasts to 2025)
What do experts and analysis sites think about the future of VeChain (VET)? In particular, information on price predictions for 2025 is attracting attention. Below are some views from various sources, but please note that these are only predictions and do not guarantee future prices.
- coinpedia: According to an April 2024 analysis, VET prices are expected to reach a maximum of 4 yuan in 2025.0.05228 dollarIt is estimated that it could reach
- Cryptorank.io (citing CoinCodex predictions)According to a June 2024 article, CoinCodex said VET will be available on February 6, 2025.0.12 dollarWe predict it will reach a high price of .
- Longforecast.com: 2024年6月時点の予測では、2025年10月のVETの平均価格は、1米ドルあたり約66.5 VET(つまり1 VETあたり約0.015ドル)と予測しています。また、同月には1ドルあたり76.923 VET(約0.013ドル)から58.824 VET(約0.017ドル)の間で推移するともしています。(Note: this site uses USD vs VET coin counts, so interpret with care.)
- CoinEdition: In a May 2024 article, we stated that “the market narrative in 5 is likely to shift from hype-based profits to a proven ecosystem, and VeChain is well positioned to benefit,” suggesting that practical use cases for VeChain may be appreciated.
- CryptoNews.com: As of May 2024, VET is expected to rise in price through 5.About $ 0.027It predicts it will stabilize at around $2026 in 0.051.
- CoinPriceForecast: According to information from June 2024, the VeChain price in 6 will start the year at $2025 (however, this may be a simulation based on historical data and may differ from the actual price at the beginning of the year).
As you can see, these predictions vary greatly depending on the analysis agency and the model used. It is important to treat price predictions as just one piece of reference information and make a comprehensive judgment based on various information.
Latest News and Roadmap Highlights
VeChain is a project that is constantly evolving, so let’s take a look at its recent developments and future plans.
- Launch of VeBetterDAO and strengthening the ecosystem: VeChain has launched a platform called VeBetterDAO to incentivize sustainable behavior and foster community-driven innovation, with the aim of revitalizing the entire ecosystem through reward mechanisms for users to behave in a positive way for the environment.
- Provision of the VORJ platform: We provide a platform called "VORJ" that allows developers to easily build and deploy Web3 applications (decentralized applications) on the VeChainThor Blockchain. This will lower the barrier to development and hopefully create more use cases.
- Tokenomics Evolution (VTHO Burn Mechanism)According to an article from Crypto.com University (as of June 2024), "As of 6, 2025% of the VTHO used as transaction fees will be burned (permanently rendered unusable), and VTHO rewards will be distributed to the Authority Masternodes that proposed blocks." Burning VTHO reduces its supply, which is expected to maintain or even increase the value of VTHO. This is an important mechanism for increasing the economic sustainability of the VeChain ecosystem.
- Continuing to expand our partnership: VeChain is continuously exploring and expanding partnerships with companies across various industries, which will hopefully increase the adoption of VeChain technology and further enhance its real-world value.
These activities demonstrate VeChain's commitment not only to technological development, but also to growing the ecosystem and contributing to the real world.
VeChain (VET) Frequently Asked Questions (FAQs)
Here we have compiled some common questions about VeChain that beginners may have and answers to them.
- Q1: What exactly is VeChain (VET)?
- A1: VeChain is a platform that uses blockchain technology to solve problems faced by companies (especially supply chain management and counterfeiting measures). VET is the main virtual currency (token) used on the platform.
- Q2: What is the difference between VET and VTHO?
- A2: VET is the token that represents the value of the VeChain platform, and VTHO is generated when you hold it. VTHO is used as a "gas fee" (fee) when making transactions on the VeChain blockchain or executing smart contracts. The existence of these two tokens stabilizes transaction costs.
- Q3: Where can I buy VeChain (VET)?
- A3: VET can be purchased at many major overseas cryptocurrency exchanges. Although it may not be available at many Japanese exchanges yet, it is available at major exchanges such as Binance, Coinbase, and KuCoin. When purchasing, please carefully check the terms of use, fees, security measures, etc. of each exchange.
- Q4: What is the future of VeChain (VET)? What is your price prediction in 2025?
- A4: VeChain has a promising future because of its concrete use cases to solve real-world business problems and a track record of partnering with major companies. Its value is likely to grow even more, especially with the growing interest in supply chain transparency and sustainability. There are diverse views on price predictions for 2025 from various experts and analysis sites (please refer to the "Expert Opinion/Analysis" section for details). Although predictions are only predictions and do not guarantee the price, many analyses seem to see positive material for 2025.
- Q5: Is VeChain safe?
- A5: The VeChainThor Blockchain itself is designed with security in mind through decentralized technology and the PoA consensus algorithm. However, investing in cryptocurrencies always involves the risk of price fluctuations, and you should be careful when managing your wallet to store your VET and when choosing an exchange. Be careful of phishing scams and other scams, and make sure to collect information and conduct transactions in a safe manner.
Summary and points to note
Well, this time we have extensively explained VeChain (VET), from its basic structure to use cases, future prospects, and expert opinions on price predictions in 2025. VeChain is not just a virtual currency for speculation,Projects that are serious about solving real-world problemsI think you can see that this is the case. In particular, contributions in areas such as supply chain management and sustainability will become increasingly important in the future.
But finally, I want to emphasize again thatInvolvement and investment in cryptocurrencies always involves risksThe information provided in this article is merely to help you understand VeChain, and does not recommend any specific investment. Please do not take the information at face value, but do your own research and understanding before making any investments.Please make your own decisions carefully and at your own risk.Please make sure to do so (this is sometimes referred to as the acronym DYOR - Do Your Own Research).
Let's keep an eye on VeChain's future developments and enjoy the world of cryptocurrencies wisely!
Links
- VeChain official website (English)
- VeChain Insider (news site, English)
- VeChain Stats
- CoinGecko (VeChain price information, Japanese support)
- CoinMarketCap (VeChain price information, Japanese support)