WHAT IS VECHAIN? || 10% beneficiary to @tron-fan-club

INTRODUCTION

I will like what VeChain is with this analogy. Imagine you visited one of the best shopping districts in the world where there are beautiful boutique stores. You can get to see some people standing in front of a Gucci store selling fake Gucci shoes because they are a lot of people passing through the boutique store wanting to buy the Gucci shoe but couldn't afford them.

The person selling the replica of the shoes outside the store could end up making a lot of money selling the fake shoes. Imagine the real Gucci shoe selling got to see this fellow selling the fake Gucci shoe, the real Gucci seller will say the person is reaping him off and he is losing a lot of money. This is the exact problem VeChain is here to solve.

WHAT IS VECHIAN?

The simple definition of VeChain is that it is a supply chain solution on a blockchain and that blockchain verify goods and track goods of any kind that travel all over the world till it gets to the final consumers. Any company whether big or small can verify and track the good till reaching the final consumer. Small the big companies like BMW and Walmart are used to tracking their goods to avoid fraud. They are tons of benefits that VeChain offers because people track where their pharmaceutical drugs are coming from and also the pharmaceutical companies track their products to prevent fraud and leaking. People can also use VeChain to track where their food comes from to be sure if good to eat.

You might say there is nothing special in what the VeChain blockchain is doing because they only track goods from the manufacturer to the customers. You might even say that we don't need VaChain because we already have the internet to help us with that. In the past companies have been using QR codes, and NFC so on track products, these methods are good but VeChain has come with blockchain technology to make sure the data remain on the blockchain forever.

VeChain is still using the old method of QR code and RFID but it much better way of using the Internet of things.

• INTERNET OF THINGS (IoT)

The Internet of things are devices that are connected to the internet these devices are used to scan a QR code good and the data will be stored on the VeChain blockchain.

• THE VECHAIN BLOCKCHAIN

The information of any goods that are scanned with the internet of things device will be stored in the blockchain forever and that means no one can change it and anyone can come to verify it.

All these might not interest you because VeChain is a solution for businesses whether big or small and not for everybody. All the big companies care about track and automating their business that is why they use VeChain but you can invest in it. The new method implemented by VeChain makes the data stored in the blockchain not manipulated.

VECHAIN ECOSYSTEM

VeChain is a blockchain, when it was launched back in the year 2015, it was run on the Ethereum blockchain before it moved to its own blockchain in the year 2018. The transition of VeChain from the Ethereum block to its own blockchain led to some vital changes such as the change of VEN to VET. The VET helps you to use the be gain blockchain. You should that VeChain use other tokens aside from VET which is called VTHO.

Although the VET and VTHO tokens might sound a little complicated I will explain them thoroughly. VET is the token that you are transferring while VTHO is the token that you are using to carry out the transactions (gas fee). The developer of VeChain uses this strategy because they don't want us to VET token to experience high volatility when it comes to transaction fees. Not while Ethereum blockchain can transfer Ethereum and still use Ethereum as a transaction fee.

WHAT CONSENSUS MODEL DOES VECHAIN USE?

VeChain came up with a new strategy for achieving a consensus model and it is different Bitcoin and Ethereum consensus models. Bitcoin and Ethereum use PoW consensus but many altcoins use PoS. In PoS, those that stake the token are the ones who will determine the value of the token but the VeChain uses something called Proof of Authority. How this Proof of Authority work is that instead of staking your token to validate transactions, the VeChain foundation chooses which node is the qualified authority.

Although the VeChain network is centralized because they are the ones that select nodes to validate transactions but the big companies that are using the network don't care about the security, they only care about the speed. Each node on the VeChain network much a stake of about 25 million VET to participate in the validation.

CONCLUSION

Since VeChain started in the year 2015, it has gained more interest from big companies like BMW, PWC and also the Chinese government. Although there has been some crises in recent years VeChain has a way to deal with problems. The VeChain blockchain is very useful but its token may not experience massive growth because the use case is very different from Ethereum.