The VeChain blockchain is based on Ethereum but has been optimized for performance like many other enterprise blockchains. VeChain’s specialty is supply chain management, and it combines blockchain with NFC, RFID, and QR code technologies to track luxury goods, food, pharmaceuticals, and much more. This requires a lot of throughput which is why VeChain uses a proof of stake consensus algorithm called ‘Proof of Authority’ that allows it to process up to 10 thousand transactions per second.
In August last year, VeChain announced the release of food-oriented supply chain solutions on the VeChain Toolchain, its blockchain as a service platform. In September, VeChain joined the Chinese Animal Health and Food Safety Alliance which includes the Chinese branches of McDonald’s, Starbucks, and Walmart. In November, it was revealed that top ranking officials in China’s Hubei province had sat down with the VeChain team and a risk management firm to discuss tracking and tracing related to the pandemic.
📉VET Price Analysis📉
Besides staking and governance, VET has no other demand drivers. However, it is very possible that the price action of VTHO could be motivating more Economic nodes to join the network. Staking VET acts as a source of passive income, and the VET being held while earning that income is also increasing in value, making it a win-win for anyone staking VET. VET’s supply also seems to be quite equitably distributed, save for a few whale wallets which are noted as belonging to exchanges such as Binance. A move to 1$ by the summer is very possible.
📈VTHO Price Analysis📈
While VTHO has a much smaller market cap than VET, I think it might have a harder time moving up the ranks after its recent pump. This is because VTHO has no maximum supply and there is a constant wall of sell pressure coming from the VeChain nodes who are earning VTHO as staking rewards and selling them for profit. However, VTHO recently broke out of a symmetrical triangle to the upside, which could see its price double in the next few days.
While VeChain does not have a clearly defined roadmap, recent interviews with founder Sunny Lu offer a few clues about what’s in the works. For starters, VeChain is looking to diversify its utility beyond supply chains and experiment with crypto-specific niches like NFTs and DeFi. In terms of adoption, VeChain hopes that its blockchain will be processing at least 1 million transactions per day at the end of the year.
⛓VeChain Adoption Difficulties⛓
Although you would think that disruptions the pandemic has caused to supply chains would leave companies scrambling for solutions like VeChain, founder Sunny Lu says that the opposite is happening. Rather than try out new technologies, companies around the world are taking a more conservative approach to how they do business. Big brand names like Walmart are opting to go with legacy supply chain solutions from the likes of IBM instead of cryptocurrency blockchains.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.