VeChain: Crypto Champion of Logistics
September 10, 2021 • 2 minutes read
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VeChain has quietly gathered momentum among crypto enthusiasts and logistic titans alike. As one of the last industries to embrace blockchain solutions, insiders in the logistics industry have high hopes in VeChain succeeding. Here’s what to know:
- Brief Intro
- VeChain Tokens
- Strategic Partnerships
- Growth Expectations
In 2016, VeChain launched itself as a blockchain platform for supply chain management. Designed to help streamline business processes and information flow through Distributed Ledger Technology (DLT), or blockchain technology in short, VeChain is on a mission to “to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers.”
Now, a number of enterprises have chosen to use VeChain’s platform to track their inventory from the manufacturer to the client due to RFID tags’ ability to transmit real-time information. With this basis, VeChain released two tokens, VET & VeThor for enterprise transactions and public investing.
VET is the primary token while VeThor (VTHO) is an off-shoot of the VET tokens. VTHO is paid as a dividend on a fixed schedule for however many VET tokens are held. However, the interesting thing about VeChain is this dual token system that includes both inflationary and deflationary mechanisms to help maintain demand and supply.
Since VET is limited to a fixed supply, VTHO generation is reliant on the amount of VET tokens available. However, everytime VTHO is used in a transaction, 70% are burned out of circulation while 30% are awarded to Authority Masternode Operators under the Proof-of-Authority concept, unlike Bitcoin’s Proof-of-Work.
VeChain keeps a list of strategic partners using their blockchain solution. Here are just 10 of them:
- DNV GL
- PriceWaterhouseCoopers (PWC)
- China Unicom
- DB Schenker
- BMW Group
- Groupe Renault
- NTT Docomo
*See the full list here
Following the rocketing cryptocurrency trend, VeChain saw an unimaginable increase in price from $0.01328 USD in September 9, 2020 to $0.1202 USD in September 10, 2021. This was off a high of $0.2546 USD on April 17, 2021, which saw cryptocurrencies across the board see massive rises in price. With over 600% growth YTD despite the recent drop, VET may continue to profit and thrive in the marketplace as long as cryptocurrencies continue to hold their bullish momentum.
According to an article from Nasdaq, “VET recently was the 23rd largest crypto with a market value of $9.679 billion. So it still has plenty of room to grow, especially if its supply chain blockchain software begins to gain popularity and if more corporations adopt it.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of GoFreight.
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