VeChain Thor (VET) is a cryptocurrency and smart contracts platform focused on enterprise use. It utilizes IoT technology (like NFC chips, RFID trackers, and QR codes) and connects them to a single distributed ledger. According to the VeChain Foundation, partnerships have been developed with companies in several industries including luxury goods, automotive, agriculture, logistics, food/drug, and governments.
Sunny Lu, former Chief Information Officer of Louis Vuitton China, founded VeChain in 2015. Initially, VeChain launched as an ERC-20 token called VEN. In August 2017, VeChain held an Initial Coin Offering (ICO) where 200,000 ETH was raised which was about $60 million at the time.
On June 30, 2018, VeChain released VeChain Thor on its own mainnet. With the roll-out of this independent blockchain, token holders swapped VEN for VET, at an exchange rate of 1:100. (VEN is no longer active.)
The VeChain Thor blockchain uses a dual token model. VET is the native token and functions as a store of value, whereas VTHO is used to pay for using and building apps on the blockchain. VTHO is automatically generated by owning VET. By using a dual token model, transaction fees remain more stable compared to a system where there is only one coin.
The VeChain Foundation, a Singapore based non-profit founded in 2017, maintains the VeChain Thor blockchain.
Instead of using fully decentralized consensus models like PoW or PoS, new blocks on the VeChain Thor blockchain are validated via a “Proof-of-Authority” (PoA) consensus algorithm. An innovation of the Proof of Stake model, PoA consensus uses identity and reputation as the form of stake instead of actual tokens. With VeChain Thor’s version of PoA, 101 known validators (Authority Nodes) produce new blocks on the blockchain. Each Authority Node requires full KYC, a formal application, dedicated hardware for the Node, 250 million VET at a minimum, and ultimately selected by the VeChain Foundation.
Because the identities and reputations of the validators are at stake, it’s argued that the validators will be held accountable and incentivized to work in the best interest of the network’s growth and security. The benefit of using trusted validators is increased blockchain efficiency which allows for greater scalability and lower transaction fees while still remaining secure.
There is no mining on the VeChainThor blockchain. A 51% attack would require that 51 of the 101 validators collude with one another, which is unlikely.
VeChain has a Blockchain-as-a-Service ("BaaS") platform called ToolChain. ToolChain is a blockchain platform offering services such as product lifecycle management, supply chain process control, data deposit, data certification, and process certification. ToolChain allows businesses of all sizes and technical abilities to utilize blockchain technology.
VeChain has a number of impressive enterprise-grade partners including Walmart China, BYD, Renault, BMW, and PricewaterhouseCooper.
VeChain is headquartered in Shanghai and has satellite offices in Singapore, Paris, Luxembourg, Palo Alto, Tokyo and Hong Kong.Read More