What is VeChain? VeChain is a blockchain that aims to improve on second-generation blockchains like Ethereum. It specifies a governance structure–a system by which decisions about the future of the blockchain can be agreed on by stakeholders. It also specifies an economic model by which their tokens (VET) are generated and distributed.
How does it work? Unlike other blockchains, VeChain uses proof of authority (PoA) as their consensus algorithm. PoA relies on the reputation of individual organizations, called Authority Masternodes (AM), to validate and produce blockchain blocks. This means that producing new blocks has a very low computational cost. VeChain has two separate tokens: VET and VTHO. VET is the main transfer-of-value token. VTHO is used to represent the cost of running operations on the blockchain. Anyone holding VET will automatically get VTHO that they can use to pay for blockchain fees. But VTHO can also be traded for VET.
What VeChain aims to solve? VeChain aims to be a blockchain that can have real enterprise adoption. They plan to do this by having a better economic model and higher scalability. The project wants to enable internet-of-things (IoT) applications, reduce transaction costs, and be flexible enough to adapt to changing technologies.
What are the features of VeChain? Built-in Governance Tools Proof of Authority High Scalability & Sidechain Capability Enabled for IoT Solutions