While many blockchain projects chase the latest hype – DeFi, GameFi, or NFTs – VeChain (VET) has chosen a very different path: focusing on real businesses and real-world applications, especially in supply chain management and product traceability. Instead of trying to build a “decentralized universe” for everyone, VeChain develops practical tech solutions that help companies track their products from factory to shelf – enabling transparency, anti-counterfeiting, and operational cost savings. And they’ve been doing it since 2015 – long before “blockchain” became a buzzword. So what exactly is VeChain? Coin60s will help you explore what VeChain is and how it works.
What is VeChain (VET)?
VeChain, also known as VeChainThor, is an enterprise-focused blockchain platform. It was initially built on Ethereum (ERC-20), but later launched its own mainnet – VeChainThor – on July 30, 2018.
Unlike projects focused on DeFi or NFTs, VeChain is designed specifically to serve businesses that need transparent supply chains, product verification, and seamless integration with Internet of Things (IoT) technologies. This enables companies to fight counterfeits, manage assets, and ensure product quality effectively.
One of VeChain’s most distinctive features is its dual-token model:
- VET is the main token, used for transferring value, payments, and reflecting a company’s network authority within the ecosystem.
- VTHO (VeThor Token) serves as the “gas” for transactions and smart contract execution. It is automatically generated for VET holders.
VeChain’s original vision was to let consumers verify product origins via their smartphones. Today, it has evolved into a comprehensive blockchain platform for enterprise use, with applications across agriculture, automotive, logistics, pharmaceuticals, and retail.
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VeChain’s technology stack and operating mechanism
What sets VeChain apart is its “business-first, blockchain-second” approach – meaning every technical design choice is centered around practical, real-world usage. The platform integrates several key technologies to ensure speed, trust, and scalability:
Consensus: Proof of Authority 2.0 (PoA 2.0): VeChain utilizes PoA 2.0, a consensus model where each block is verified by multiple authorized nodes, with the main block producer chosen randomly via a VRF hash. This ensures:
- Faster transaction finality
- Absolute accuracy of block validation
- Enhanced protection against localized attacks
- Speed and performance
- Block time: ~10 seconds
- Throughput: 10,000 transactions per second (TPS)
IoT + VID (VeChain Identity): VeChain assigns each real-world product a unique VID – a digital twin on the blockchain. RFID tags, NFC chips, or QR codes are used to store traceability data, helping businesses detect counterfeits at every step of the supply chain.
ToolChain – Blockchain-as-a-Service (BaaS): ToolChain is VeChain’s turnkey BaaS platform that allows businesses to use blockchain without deep technical know-how. It offers:
- Product lifecycle management
- Data storage and certification
- Supply chain automation
- Easy smart contract creation
Thanks to this setup, VeChain is not just a “fast blockchain” – it’s a platform that’s genuinely ready for enterprise deployment.
Tokenomics: VET and VTHO
VeChain follows a dual-token model, clearly separating value (VET) from transaction fees (VTHO). This smart design helps stabilize costs for businesses and improves flexibility across the ecosystem.
VET (VeChain Token): The primary token of the network, used for:
- Transferring value
- Participating in VeChainThor ecosystem activities
- Representing authority and influence (enterprises holding more VET gain more rights)
- Holding VET also automatically generates VTHO at a fixed rate.
VTHO (VeThor Token): The utility token that serves as “fuel” (gas) for transactions and smart contracts.
- 10,000 VET = ~4.32 VTHO/day, which equals 0.00000005 VTHO per VET per block (every 10 seconds).
- 70% of VTHO used in each transaction is burned, while the remaining 30% goes to block-producing nodes.
VET Token Allocation:
- 41% – Public Sale
- 9% – Private Investors
- 23% – Enterprise Investors
- 5% – Founders and Development Team
- 12% – Technical Development Fund
- 10% – Business Development Fund
By separating the roles of VET and VTHO, VeChain addresses a challenge that many blockchains struggle with: balancing speculation with stable utility for enterprise users without creating volatility in transaction costs.
VeChain’s development history and roadmap
VeChain is one of the most well-structured blockchain platforms, with a development timeline stretching from 2015 to the present, marked by several key milestones:
Notable milestones:
- 2015: VeChain was conceived as an internal project under BitSE, a Chinese tech firm.
- 2016: Released its first test version – VeChain 0.1 – integrating smart chips and a blockchain explorer.
- 2017: Launched its third-generation chip and BaaS (Blockchain-as-a-Service) platform.
- 2018: Rebranded to VeChainThor, separated from Ethereum, and launched its own mainnet.
- 2021–2022: Rolled out PoA 2.0, enhancing scalability, security, and data finality.
- 2023–2024: Expanded strategic partnerships and real-world applications in agriculture, automotive, and retail.
- 2025 (expected): Focus on blockchain-IoT synergy and growing its presence in the U.S. and Europe.
Long-term vision: VeChain aims to become the universal enterprise blockchain, empowering companies of all sizes to digitize their supply chains, enhance transparency, and scale sustainable business models.
VeChain’s real-world business applications
Instead of chasing DeFi hype or meme coin trends, VeChain focuses on real-world value creation by solving specific business challenges using blockchain. Here are key areas where VeChain has already made a difference:
- Supply Chain Management: From food traceability to luxury goods and pharmaceuticals, VeChain enables full product journey verification, helping fight counterfeits and build consumer trust.
- Carbon Footprint & ESG Compliance: With its digital carbon ecosystem, VeChain allows companies to track CO₂ emissions and meet increasing ESG regulatory demands from global markets.
- Automotive Digital Passports: Partnering with car manufacturers, VeChain provides on-chain vehicle lifecycle data from maintenance history to parts usage — boosting transparency and resale value.
- Consumer Product Authentication: Customers can scan QR codes or NFC chips to verify the origin of items — from premium wine to luxury handbags — thanks to the VeChain ToolChain platform.
- Document Digitization: Invoices, legal documents, and certificates are encrypted and immutably stored on VeChain’s blockchain, reducing forgery and verification costs.
VeChain proves that blockchain isn’t just about finance, it’s a robust tool for enterprise digitization and transparency.
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VeChain’s core team and strategic partners
One key factor behind VeChain’s sustainable growth is its experienced leadership team and a strong network of global partners.
Key team members:
- Sunny Lu – CEO and co-founder of VeChain, formerly CTO at Louis Vuitton China. He is a pioneer in connecting blockchain with real-world supply chains.
- Jay Zhang – CFO, with a solid finance background from Deloitte and PwC.
- Scott Brisbin – General Counsel, previously a senior lawyer at the global law firm DLA Piper.
Notable strategic partners:
- DNV – A global certification body collaborating with VeChain on traceability and ESG solutions.
- PwC – The auditing giant has chosen VeChain to roll out blockchain applications for enterprise clients.
- BMW, Renault, Walmart China, LVMH – These major players have tested or adopted VeChain’s supply chain, authentication, and provenance tools.
- Amazon AWS & Salesforce – Infrastructure and integration partners supporting VeChain’s scalable cloud deployments.
This combination of leadership and enterprise-grade partnerships provides a solid backbone for VeChain’s ongoing success in the blockchain-for-business arena.
Strengths and Limitations of VeChain
VeChain is more than just a blockchain platform, it’s an enterprise-focused technology ecosystem with highly practical applications. However, like any project, VeChain has both notable strengths and limitations that investors should consider.
Key Strengths
- Clear real-world use cases: VeChain excels in areas like product traceability, supply chain management, anti-counterfeiting, and data verification across industries such as automotive, pharmaceuticals, retail, and agriculture.
- Smart dual-token model (VET – VTHO): By separating the value token (VET) and the transaction fee token (VTHO), VeChain ensures stable operating costs — a major advantage for businesses needing predictable expense structures.
- High network performance: The VeChainThor blockchain can process up to 10,000 transactions per second (TPS) with 10-second block times, outperforming many current layer-1 platforms.
- Strong enterprise partnerships: Collaborations with giants like BMW, Walmart, LVMH, DNV, and PwC add significant credibility and demonstrate VeChain’s enterprise-grade utility.
- Strategic focus on the Chinese market: With strong ties in China, VeChain is well-positioned to serve domestic manufacturers and supply chains in need of transparent tracking solutions.
Notable Limitations
- Limited decentralization: The Proof of Authority (PoA) consensus enhances performance but sacrifices decentralization, as only a small set of masternodes can validate transactions.
- VET price performance lacks momentum: Despite solid fundamentals, VET’s price has shown limited breakout potential compared to other altcoins from the same era.
- Less appealing to retail users: As a B2B-focused platform, VeChain doesn’t attract the mass retail crowd the way DeFi or NFT projects do.
- Low marketing hype: VeChain rarely generates social media buzz or FOMO, which may reduce its visibility in mainstream crypto investor circles despite real-world success.
Should you invest in VeChain (VET)?
VeChain is one of the few blockchain projects that focus on real-world enterprise applications, rather than chasing DeFi or NFT trends like most others. With a clear vision, robust technology, and strong partnerships with major corporations such as Walmart China, BMW, PwC, and DNV, VeChain has established a solid presence in the blockchain industry.
From a technical standpoint, VeChain employs a Proof of Authority (PoA) consensus mechanism, which significantly reduces energy consumption and increases transaction throughput—an ideal fit for enterprise use cases. The dual-token system of VET (main token) and VTHO (gas fee token) helps maintain price stability for real-world applications, shielding operational costs from market volatility.
However, VET is not the kind of token that delivers overnight returns like speculative altcoins. It requires patience and a long-term perspective. Investors should consider VET as part of a sustainable, diversified portfolio rather than a short-term profit vehicle.
If you believe in the future of blockchain-powered supply chain management, traceability, and corporate transparency, VET is a worthy long-term investment. But if you’re looking for quick gains or short-term volatility, you might want to think twice before jumping in.
Conclusion
VeChain (VET) is more than just a cryptocurrency—it is a comprehensive blockchain platform with a clear vision and strong real-world business applications. By focusing on practical issues such as supply chain transparency, product traceability, data management, and IoT integration, VeChain has proven its value beyond many other blockchain projects that primarily target decentralized finance (DeFi). With a robust ecosystem, reputable global partnerships, solid technology, and a well-defined expansion strategy, VeChain is steadily positioning itself as a leading enterprise blockchain solution. However, as with any investment, holding VET requires careful consideration based on one’s knowledge and risk appetite.