What Is VeChain (VET)?

Explore how VeChain’s dual-token system powers enterprise applications on a smart contract platform to help solve data challenges for businesses.

Introduction

Businesses often struggle with fragmented data systems, supply chain opacity, and a lack of trust between stakeholders. These inefficiencies lead to counterfeit goods, regulatory compliance issues, and costly verification processes across industries.

VeChain, a Layer-1 (L1) blockchain built with enterprise adoption in mind, aims to solve these problems. Through its dual-token system, Internet of Things (IoT) integration, and real-world partnerships, VeChain offers a practical path for businesses to bridge the gap between digital trust and operational efficiency.

What Is VeChain?

VeChain was founded in 2015 by Sunny Lu, with its VeChainThor mainnet launching in June 2018. VeChainThor is an enterprise-grade Layer-1 smart contract platform that aims to build digital ecosystems that drive global sustainability and digital transformation.

While blockchain offers numerous advantages to businesses, cost unpredictability often hampers real-world adoption. VeChain addresses this through a dual-token model:

• VeChain (VET): Serves as the value transfer token (utility token). VET holders also participate in network governance.
  
• VeThor Token (VTHO): Covers transaction and smart contract execution fees.

This separation ensures that market speculation around VET doesn’t impact usage costs, which are paid in VTHO. 

The VeChain network has maintained 100% uptime since its launch, reinforcing trust in its availability. It is also amongst the most energy-efficient blockchains, consuming approximately 0.04% of the energy used by networks like Bitcoin.

VeChain has forged partnerships with major enterprises, including:

• Sam’s Club
  
• BMW
  
• DHL Innovation Centre
  
• Haier
  
• ARKET

VeChain has also partnered with the Boston Consulting Group (BCG) to co-develop the ‘Web3 for Better’ white paper, which outlines a strategic vision for using blockchain to drive sustainability and positive behavioural change. 

While BCG has contributed strategic and Environmental, Social and Governance (ESG) expertise, VeChain is leading the technical development of incentive-based, sustainability-focused decentralised applications (dapps) aligned with this framework, aiming to accelerate Web3 adoption across enterprises and individuals.

The VeChain white paper outlines its long-term vision for building cross-industry blockchain ecosystems, empowering stakeholders to create practical, real-world applications.

How Does VeChain Work?

VeChain uses a Proof of Authority (PoA) consensus mechanism, with an active set of 101 Authority Masternodes (AMs) verifying and proposing blocks on VeChainThor. A rigorous process has been implemented in order for a person/entity to run an AM:

• Be vetted to ensure they have a legitimate identity.
• Hold 25 million VET tokens as collateral.
• Run and manage the node with a certain guaranteed level of performance and availability.

Key features of VeChain:

• Fee delegation, allowing smart contracts to automatically cover transaction fees for business users.
  
• Fast block times, averaging one block every 10 seconds, making it suitable for enterprise applications.
  
• Compatible with the Ethereum Virtual Machine (EVM), promoting interoperability with the Ethereum (ETH) ecosystem. 

Does VeChain Have Utility?

VeChain offers clear utility through its focus on real-world enterprise solutions. By integrating blockchain, Internet of Things (IoT), and Near Field Communication (NFC) technologies, it enables businesses to improve data transparency, supply chain traceability, and operational efficiency.

However, VET’s lower liquidity compared to more prominent cryptocurrencies can lead to wider price spreads when converting to fiat currency, which may be a factor for active traders.

Benefits and Limitations of VeChain

Tokenomics of VeChain

In terms of tokenomics, VeChain operates with a dual-token model, each serving distinct roles within the ecosystem.

VET (VeChain)

• Purpose: Functions as the network’s value transfer token.
• Supply: Fixed maximum supply of 86,712,634,466 tokens, ensuring predictability and transparency.
• Market Role: Traded on the open market, subject to price volatility based on supply and demand dynamics.

VTHO (VeThor)

• Purpose: Covers transaction and smart contract fees on the VeChainThor network.
• Supply: No fixed cap.
• Burn Mechanism: As of 2025, 100% of VTHO used for transaction fees is burned, and VTHO rewards are distributed to Authority Masternodes that have proposed the block.

The key distinction is that VET is used for value storage and governance (susceptible to market forces), whereas VTHO provides predictable transaction costs (protects against VET’s volatility). This dual-token system enables VeChain to separate market speculation from network utility.

What Does the Future Hold for VeChain?

VeChain’s future hinges on its ability to drive enterprise adoption and expand its ecosystem of real-world applications. With a strategic focus on sustainability and supply chain transparency, the platform may cater to growing demand for blockchain-based solutions in traditional industries.

Partnerships with multinational corporations and organisations, ranging from Walmart China to the UN and BCG, underscore VeChain’s appeal as a growing Layer-1 protocol for enterprise use cases.

VET, as the core value token, holds more market significance, but its large circulating supply may limit its price growth potential. In contrast, VTHO is designed for transactional stability, ensuring predictable network fees regardless of market fluctuations.

Looking ahead, the success of VeChain’s sustainability initiatives could influence broader adoption. If the platform continues to deliver scalable, regulatory-compliant solutions that align with environmental and business goals, it could be implemented in blockchain and enterprise settings.

How to Buy VET and VTHO on Crypto.com

Buying VET, VTHO, and other Layer-1 tokens is straightforward with the Crypto.com App. Users can use supported fiat currencies like USD, EUR, and GBP.

Below is a step-by-step guide to getting started:

1. Download the Crypto.com App, available on the Apple App Store and Google Play.
   
2. Complete the sign-up process. On-screen prompts are at hand to guide users.
   
3. Funds deposited using bank transfers will usually clear within one to three business days. For faster access, users can also fund their account using Apple Pay or a debit/credit card. Please note that processing times and availability may vary depending on card issuer and other factors.
   
4. Once the funds are cleared, users can start buying VET and VTHO, along with large-cap assets like Bitcoin (BTC) and Ethereum (ETH), plus an extensive collection of altcoins and meme coins.

Conclusion

VeChain stands out in the blockchain space for its enterprise-first approach, energy efficiency, and dedication to real-world applications. This is underpinned by strong partnerships and a clear development roadmap in its white paper.

However, VET’s large token supply may limit price growth, and enterprise adoption doesn’t always translate into immediate market excitement. For users, this means potential upside is tied closely to VeChain’s continued adoption and ecosystem expansion.

As with any crypto additions to portfolios, purchasing VET or any other cryptocurrency should be done responsibly in accordance with personal goals and risk appetite.

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