VeChain is a platform which is run by a network of computers on a global scale and has the objective of allowing business to build and run their own decentralized apps (or dApps).

While enabling businesses to improve digital collaboration between themselves, VeChain operates as to give them new tools and methods for highly efficient data transfer and supply-chain management capabilities.

VeChain was originally thought as a supply chain management solution but after a rebranding process in 2018, VeChain Thor was launched, furthering the project as it ventured into decentralized applications and data solutions.

VeChain Explained

VeChain has two native cryptocurrencies:

1. VET coin: which is used in order to vote for protocol changes

2. VTHOR: which is used of executing transactions

Any company can launch dApps and in order to facilitate the process, VeChain has provided them with a software development kit named VeChain ToolChain.

The /Proof of Authority Mechanism

VeChain Thor employs a proof-of-authority consensus mechanism. As such, there areAuthority Masternodes (which are users who verify and add transactions to VeChain’s blockchain) and to become one, users must submit their ID to the VeChain Foundation while staking at least 25 million VET.

While helping in terms of large transaction volume speed, the proof of authority mechanism is not a synonym to privacy and relies on having a central authority as a key figure on deciding who can partake in processing said transactions and who cannot.

The History Behind VeChain

VeChain is the vision of Sunny Lu and Jay Zhang. It was founded in 2015 and two years later its crowdsale raised an estimated $20 million USD by selling 1 billion tokens.