What is VTHO and VET?

The uniqueness of this blockchain is that it is supported by two utility tokens. VET is the main token, it is used to carry out user transactions. VTHO (VeChain Thor Energy) is an auxiliary energy token that acts as a gas (used to pay for transactions on the network) and is also required to send data to smart contracts. VTHO is basically the price for using VeCahin Thor.

VET also serves as the security element to the VeChain Thor blockchain, which runs on the Proof-of-Authority (POA) consensus mechanism. According to the principles of this algorithm, only certain clients can validate transactions and add blocks to the network. Blocks must be carefully reviewed and approved by the VeChain Foundation. In addition, to become a network validator, a user must have at least 25,000,000 VETe on their balance. In total, the blockchain is limited to 101 nodes. Users with a balance of 1,000,000 VET can take part in voting on the platform, but their votes are less significant than those of reputable validators.

Both tokens are in interdependent service. Operations with smart contracts or transactions cannot be performed without VTHO. In turn, VTHO cannot exist without VET, since the auxiliary asset is generated at the expense of the main one. The purchase of VTHO is optional for users. They automatically receive VTHO if they hold VET in their wallet.

VeChain Thor is a public, scalable blockchain developed by VeChain for transparent supply chain management. The history of transactions can be viewed using the VeChain Explorer service.

Enterprises can create their own decentralized applications based on the network or operate existing Daps built on VeChain Thor. More than 30 Fortune 500 firms are using this blockchain.

Clients interact with the distributed registry through a special VeChain ToolChain platform. It can be used by any enterprise that wants to introduce blockchain into their business processes to manage data, do certification or track the life cycle of a product in an innovative way.

The tool is useful for both companies and consumers. The latter, using the VeChain Pro application, can scan the QR code on a certain product and get acquainted with what raw materials were used to make it, and in what places the product was located before it fell into their hands. 

VeChain keeps track of every step that goods go through with NFC smart chips, QR codes and RFID trackers for the enterprise IoT. Thus, compliance with all requirements regarding the transportation of products, their creation and origin is guaranteed. Therefore, blockchain helps fight counterfeiting and prevents fraudulent schemes in supply chain management across industries.

In addition, VeChain encourages people to reduce their energy consumption and CO2 emissions through “carbon credits” that can be spent on its services or offerings from partner companies. With the help of blockchain and IoT technologies, it reads energy consumption information from smart devices and transfers it to the blockchain.

VeChain was one of the first companies in the crypto industry to offer blockchain services in supply chain management. The project was founded by Sunny Lu, former IT manager of Bacardi China and CTO of Louis Vuitton China. In 2014, Lu became interested in the field of information technology, and in 2015, VeChain appeared. Initially, it was a subsidiary of the largest Chinese blockchain developer Bitse.

Later, VeChain became independent, and in 2018 it rebranded, creating the VeChain Thor network and the VET token. Later on, the ecosystem was further transformed and expanded, which led to the emergence of VTHO.