VeChain (VET) is a Proof of Authority (PoA) token, requiring relatively low computing power to achieve network security versus a protocol such as Bitcoin. A recent [CTI report](https://www.vechain.org/vechainthor-is-one-of-the-most-eco-friendly-public-blockchains-worldwide-cti-verified/) showed that VeChain's annual carbon footprint is incredibly small at just 2.4% of the emissions of mining a single Bitcoin, thus making PoA an incredibly efficient consensus mechanism for securing the network. [Proof-of-authority](https://coinmarketcap.com/alexandria/glossary/proof-of-authority-poa), is a process wherein authority masternode operators are selected by an independent Steering Committee, thus giving them 'authority' to run a masternode. This model is particularly attractive for enterprises who want assurances about the integrity and quality of validators running the network, and assurances bad actors can be ejected if needed.

VeChain has two in-house tokens: VeChain (VET) and VeThor (VTHO). Described as a unique offering for such a platform, the dual-token system is designed to avoid fee fluctuations and network congestion. VET is the token used for transactions and other activities, while VTHO provides fee payments and thus functions as a “gas token,” similar to how [gas](https://coinmarketcap.com/alexandria/glossary/gas-price) functions for Ethereum ([ETH](https://coinmarketcap.com/currencies/ethereum/)) transactions. VET holders automatically generate a small amount of passive income in VTHO, while 70% of the VTHO used in a VET payment is destroyed. VTHO is generated based on VET holdings, while VET itself has a maximum fixed supply of 86,712,634,466 tokens. At the time of writing (07/12/2021) - there are 66,760,741,299 tokens in circulation according to [VeChainStats](https://vechainstats.com/)

VeChain IDs are a crucial component of the VeChain blockchain. A unique identifier is assigned to a product. Sensors are used to track each step of a supply-chain. As a result, a safe environment is formed for all parties, and movement data is documented and verified. The general idea of ​​VeChain is to grant a way to determine authenticity and quality of real products, as well as to prevent fraud. The platform seeks to provide stakeholders with comprehensive information about products and business processes, thereby increasing market transparency and making international trade more fair and efficient. The list of VeChain clients already includes large corporations like BMW, LVMH, and Walmart. VeChain software allows enterprise developers to create and run dApps. Therefore, due to VeChain’s blockchain, companies can apply dApps and offer a higher level of services and goods. The project also uses proprietary solutions and developments, including ToolChain, My StoryTool, the VeChainThor blockchain, and Internet of Things ([IoT](https://coinmarketcap.com/alexandria/glossary/internet-of-things)) technology to facilitate processes.

VeChain exists to disrupt traditional business models, and is best known for its work in supply chain, an industry that has changed little over the decades. Its work in providing a decentralised trust layer for multi-party ecosystems has already seen major sucesses with high profile clientele and government bodies. Using transparent technology with no single point of weakness or control allows for greater security, efficiency and ease of tracking for all kinds of data, while reducing costs through trustless automation via smart contracts. Carbon, supply chain, international logistics, incentivised ecosystems, automobile passports and more all greatly benefit from the digitisation of trust and colaboration it enables. VeChain’s platform accordingly has very wide appeal to many different clients of clients and industries. VeChain’s official literature notes that its unique proposition lies in its dual-token setup alongside transformative protocols such as 'fee delegation' and it's one-stop 'ToolChain' platform that means crypto-wary companies can pay in fiat for VeChain's Blockchain-as-a-service, while smart contracts handle gas payment costs, ensuring frictionless use of the network, even in strict jurisdictions.

VeChain is the product of creator and co-founder Sunny Lu, an IT executive who was formerly CIO of Louis Vuitton China. Lu has since become a well-known name within the cryptocurrency industry. He has drawn attention to the ability of blockchain technology to solve transparency in particular, arguing that it can create “trust-free” enterprise/business structures that do not suffer from information corruption thanks to close working collaborations with key auditing/certification consultants such as PriceWaterhouseCoopers and DNV who verify data quality and certify industrial processes. Fellow co-founder Jay Zhang, who directs VeChain's global corporate structure, governance, and financial management, previously worked for both Deloitte and PriceWaterhouseCoopers in the finance and risk management sphere. Having originally begun life in 2015, VeChain is one of the oldest dedicated smart contract platforms on the market, with reflected prestige among enterprise clients.

VeChain (VET) is a versatile enterprise-grade L1 smart contract platform. VeChain began in 2015 as a private consoritium chain, working with a host of enterprises to explore applications of blockchain. VeChain would begin their transition to public blockchain in 2017 with the ERC-20 token VEN, before launching a mainnet of their own in 2018 using the ticker VET. VeChain aims to use distributed governance and Internet of Things (IoT) technologies to create an ecosystem which solves major data hurdles for multiple global industries from medical to energy, food & beverage to sustainability and SDG goals. By leveraging the power of trustless data, VeChain is building the digital backbone that will underpin the fourth industrial revolution, which demands real-time and trustless data sharing between many participants. The platform uses two tokens, VET and [VTHO](https://coinmarketcap.com/currencies/vethor-token/), to manage and create value based on its VeChainThor public blockchain. VET generates VTHO and acts as the store of value and value transfer medium. VTHO is used to pay for GAS costs, separating the need to expend VET when writing data. This has the additional benefit of ensuring costs of using the network can be kept stable by tweaking certain variables such as the amount of VTHO required to service a transaction, or by increasing the VTHO geneation rate. Such actions first require all-stakeholder community votes. VeChain has been able to demonstrate massively boosted efficiency, traceability and transparency across data trails, supply chains and within novel kinds of ecosystems, such as those in San Marino targeting UN SDGs, among others.