If we want to talk about enterprise adoption, perhaps there’s no better crypto project than VeChain. Yes, VeChain has been widely recognized and acknowledged by many big traditional companies. From DNV GL to PwC, VeChain has very strong enterprise support, and it is able to remain relevant in the very wild competition of crypto space even in today’s era.
But, here’s the question. Is it still a good investment for the future? Well, let’s find out together. Also, it’s important to note that VeChain foundation has been aiding a Cyprus hospital to fight COVID-19. That’s very noble of them. Click here to read the story.
The Basic Idea Of VeChain
In a nutshell, VeChain is a public blockchain platform that offers BaaS (Blockchain as a Service) solutions to enterprises, especially in the field of IoT (Internet of Things) and supply chain. The full name of the blockchain is actually VeChain Thor and the native cryptocurrency of this VeChain Thor is VET.
For your information, the supply chain basically is the process of distribution from the very first producer (i.e., farmer) to the end-user (someone who buys the product at the supermarket). For many decades, there are countless loopholes that make the supply chain ineffective and costly. The blockchain, combined with RFID tags and IoT devices, has been able to re-optimize the supply chain.
VeChain is the most popular public blockchain platform built for that exact purpose. It utilizes NFC chips, QR codes, RFID tags, and trackers to items that need to be tracked from one hand to another in the supply chain. Due to its utilization of the blockchain, they can make sure every info is verified by various different ledgers - which means decentralization minimizes the need for trust.
Companies that have been partnering with VeChain have enjoyed the cost reduction and they also successfully increased their efficiency in fighting counterfeit items and fake/incomplete distribution by third parties in the supply chain.
And in the center of it all, there’s VET, a governance token that generates VTHO (VeThor Token). These VTHO tokens are needed to pay for each transaction fee. In other words, VET hodl-ers are incentivized with VTHO tokens, while VTHO itself is the utility token that empowers each transaction in VeChain Thor blockchain. As for its consensus algorithm, VeChain uses what they call as Proof-of-Authority (PoA).
Is VET A Worthy Investment?
Now, let’s talk about the more important thing. VeChain has many enterprise partners such as PwC, Renault, DNV GL, NTT Docomo, ENN Energy Holdings Limited, Yida China Holdings Limited, and Kuehne & Nagel. For many years, the Chinese government has also been rumored to be “close” with VeChain in terms of blockchain exploration.
From an enterprise adoption perspective, VeChain is perhaps one of the biggest public blockchains in the world. That being said, its big partnerships didn’t really generate much FOMO back in 2019 and early 2020, until very recently. Yes, back in early July 2020, VET successfully gained over 100% price jump in a very short period of time. So, people who didn’t really find VET exciting enough to trade suddenly regrow their faith in VET.
In my personal opinion, VET remains one of the most attractive altcoins to trade and to invest in the long term. However, if you decide to invest from now, you better be careful, because there might be some upcoming dumps. Just like crypto history has taught us so many times, any altcoin that has risen over 100% within days or weeks would be dumped as soon as the traders want to take profit. While there is no indication of that at the moment but just make sure you understand the risk.
And by the way, besides its enterprise adoption, VeChain is also utilized to help a Cyprus hospital when it comes to battling COVID-19 pandemic. You can check this story if you are interested.
Conclusion
VeChain is a top public blockchain with strong enterprise support. While there are legit criticisms and doubts about VeChain, it remains one of the best cryptocurrencies when it comes to fundamentals. However, it’s always risky to trade or invest in a coin that has risen significantly in a short period of time. Be cautious.
