What is VeChain Thor?
VeChain Thor aims to help retailers and consumers determine a product’s quality and authenticity by tracking items through the supply chain.
Currently, the 18th largest crypto by market cap, VeChain Thor is in the midst of significant changes. Having changed its name from VeChain in February, VeChain Thor launched a new blockchain platform in late June. The platform’s tech is beginning to gain traction, as a few media outlets now publicize it as being among the ‘best of the best.’ Although entirely subjective, VET was able to achieve rapid and steady achievements with its mainnet release.
The word ‘VeChain’ means ‘the only chain,’ a clear reference to the team’s objectives (i.e., the one blockchain platform that will rule over all the others). While skeptics argue that VeChain and its Proof of Authority consensus method are merely an improved version of bitcoin, its utility may make it an establishment player soon enough. Especially if it succeeds at being the first to host “real business” applications on a public blockchain.
By incorporating a tried-and-true technology, VeChain offers a supply chain solution arguably superior to other blockchain projects. The company collaborated with the world’s leading RFID solutions providers to create custom-design chips for use on their platform. Their ’use-case first’ design approach has enabled its development team to achieve impressive transaction speeds (over 10,000 tps). And these use-cases have undergone usability testing in several industries, most notably luxury goods, liquor, and agriculture. Many have moved beyond mere proof of concept ideas to launch on the global market. For instance, BMW is among VeChain’s many partnerships, as it intends to use their technology to track its extensive parts industry.
The economics associated with token use can be counterproductive. As the founder of VeChain Sunny Lu, states,
“It kind of generates a typical paradox which is, the more utility, the more use cases, the higher valuation of the token. It also means a higher cost to use the blockchain, and that means no one will use it anymore if the cost is too high.”
Consequently, VeChain resolves this issue by using a twin token system. That is, its VET asset serves as a store of value while the VeThor (VTHO) token reflects the blockchain-use cost.
To conduct transactions on the VeChainThor blockchain, VeChainThor (VET) holders must generate VeThor (VTHO). The Binance exchange calculates and distributes VTHO on a monthly basis.
Since VeChain’s platform is relatively new, it’s somewhat uncertain if the platform will live up to expectations. However, its technology has already proven to be exceptionally helpful to corporate supply chain management.