What is VeChain (VET) Coin and How Does It Work?

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VeChain is a leading blockchain platform focusing on supply chain management solutions and enterprise adoption of distributed ledger technology. The native cryptocurrency of the VeChainThor blockchain is called VeChain Token (VET), which powers the network and enables users to access dApps built on top of it. Let’s take a deeper dive into what VeChain is, how its blockchain operates, and what purpose the VET coin serves.

What is the purpose of VeChain (VET) coin?

VeChain vet coin

VeChain aims to build a trust-free and distributed business ecosystem using blockchain technology. The VET token plays a crucial role in this ecosystem by acting as the primary medium of value exchange. Anyone who wants to utilize dApps or services hosted on the VeChainThor blockchain needs to pay transaction fees in VET. This includes read/write access to the distributed ledger as well as computational steps required to execute smart contracts.

In addition to transaction fees, VET is also used as a staking token. Masternodes and nodes that secure the network by validating transactions are rewarded with VET based on the amount of tokens they stake. This unique two-token model with VET and VTHO helps provide stable and predictable costs for businesses.

How does VeChain (VET) crypto work?

VeChain employs a proof-of-authority consensus algorithm where a select group of masternodes known as Authority Masternodes securely validate network transactions. Unlike proof-of-work chains, VeChain transactions are faster, more environmentally sustainable, and provide stronger governance controls essential for its business use cases.

The VeChainThor blockchain allows developers to build robust decentralized applications and smart contracts focused on supply chain management, anti-counterfeiting measures, and other real-world solutions optimized for enterprise adoption. Thanks to websites like EXEcrypto, everyone stays up to date on the latest VeChain news and updates very quickly.
Some key DApps already live on VeChain include:

  • ToolChain – An IoT and blockchain integration platform allowing easy deployment of VeChain apps.
  • VeVID – A platform offering digital identification services to verify authenticity and origin of luxury goods.
  • My Story – Allows users scan QR codes to view product histories, certificates, etc. Blockchain verified origin storytelling.

Does VeChain (VET) token have a future?

VeChain vet coin future

With partnerships with major brands like Walmart China, BYD Auto, Bayer China, and more under its belt, VeChain is leading the way when it comes to supply chain focused blockchain applications. Real use cases extending across food, liquor, automotive and other industries continue to accrue on the network.

VeChain’s active developer community, strong technical team and dedicated business development engine point towards more promising DApps and further enterprise integrations forthcoming. As long as supply chain security and provenance remain important, VeChain and VET appear well poised for ongoing relevance and growth in the coming years.

When VeChain (VET) coin launched?

VeChain launched in 2015 as a project focused on supply chain and anti-counterfeiting solutions. It held an ICO in 2017, raising over $30 million worth of ETH. In mid-2018, VeChain rebranded and migrated from an Ethereum ERC-20 token to become the native token (VET) of its own public blockchain – VeChainThor.

Is VeChain (VET) crypto a scam?

VeChain vet coin scam

Absolutely not. VeChain is a prominent and well-established blockchain project with an experienced team of developers, researchers, and business executives. Its strong network of partnerships with multinational corporations collaborate on real supply chain management issues. VET also enjoys a top 40 cryptocurrency ranking by market cap, which scams rarely attain. Its underlying technology, usage cases and business model are transparent and scientifically supported. Investors can feel comfortable that VeChain is a genuine and legitimate long-term blockchain contender.

Is it safe to invest in VeChain (VET) token?

As with any cryptocurrency, there are inherent risks to price volatility one takes on when investing in VET. However, VeChain stands out as an arguably safer prospect than speculative coins lacking product-market fit. With a working blockchain platform providing discernible value and a deep partner network, VeChain offers more concrete assurances than projects still predominantly in theoretical development phases. For those willing to hold long-term and able to stomach short-term swings, VET could be a moderately safe cryptocurrency investment choice. As always, do thorough research and never risk more capital than you can afford to lose.

Is VeChain (VET) coin worth it? VET Price 2023

VeChain vet coin price 2023

As one of the better established blockchain platforms today with strong global partnerships, developers and use cases already in production, VeChain remains a worthwhile consideration for blockchain investors. The 2023 VET price will likely continue being shaped by mainstream adoption growth of the VeChainThor network and expansion of enterprise deals. Barring any unforeseen regulatory issues or black swan events, VET seems reasonably positioned for a bullish 2024 with an average price range between $0.05-0.08. Longer term VET coin remains an intriguing hold for those interested in more utility-driven crypto over speculative plays.

Where to buy VeChain (VET) crypto?

Some reputable cryptocurrency exchanges where you can purchase VET include Binance, KuCoin, Huobi, Crypto.com, and Bithumb Global. Be sure any exchange chosen provides adequate security for your funds as well as sufficient liquidity and trading volume for VET/your local fiat pair. Always double check wallet connectivity, withdrawal limits, and trading fees before signing up. For beginners, we recommend starting with regulated platforms like Coinbase or Gemini and learning trading fundamentals there before venturing into less user-friendly venues.

How to sell VeChain (VET) token?

VeChain vet token

Selling VET follows much the same process as purchasing but in reverse. Log into your exchange account, navigate to the VET/fiat markets, input your sell order details like price and amount, and click confirm. The exchange will take custody of your VET and deposit the fiat currency amount into your linked bank account or debit card usually within a few business days depending on overall network load and your local banking rules. Always transfer any remaining VET tokens off exchanges into a secure non-custodial wallet for safer long-term storage.

How to stake VeChain (VET) coin?

VeChain uses a proof-of-authority consensus algorithm, so VET staking functions differently than proof-of-stake networks. Staking on VeChain earns VTHO rewards paid out daily instead of additional VET. You can stake your VET balance through the official VeChainThor mobile or desktop wallet apps. Staking requires holding a minimum of 500,000 VET which currently generates around 3,750 VTHO annually depending on usage levels. Alternatively, some exchanges like Crypto.com or Binance offer lower 1 VET minimum staking with variable APY rates.

How to mine VeChain (VET) crypto?

VeChain vet coin mine

VeChain is not minable like NFT or proof-of-work blockchains. The only way to obtain VET is by purchasing it on a cryptocurrency exchange utilizing fiat currency, another cryptocurrency like BTC, stablecoins, or through an initial coin offering. There are no systems or hardware for individuals to directly mine new VET tokens themselves. Staking is currently the best option for passive VET income as an alternative to buying on dipping market prices and hoping for future price appreciation.

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