VTHO Crypto — Everything You Need to Know
Posted by Frank Gogol
If there is a business ecosystem that enables transparent data flow, making way for efficient collaboration, then it is VeChain. Earlier, when the supply chain data was distributed among multiple stakeholders, there was no way to ensure information flow. The blockchain technology supported by VeChain lets both the businesses and consumers have a clear view of the information about various products creating a kind of transparency never heard of before.
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What is VeChain Crypto?
VeChain crypto is backed by blockchain aimed at bettering the performance of different processes. It powers the supply chain management processes by ensuring that each stage of the supply chain is in sync with the quality standards and compliance measures. This is made possible by using different physical trackers that track every step of the supply chain resulting in smooth arrival of the goods at their destinations without any damage.
What is VTHO Blockchain?
The VTHO blockchain plays host to the VeChain ecosystem. The VeChain Explorer service contains a history of all cryptocurrency transactions that have occurred. VeChainThor is a public chain made for enterprises that cater to changing needs. There are applications built on the VeChainThor blockchain that businesses can use. But every business is free to have their decentralized applications (dApps) if they wish. The aim of building the VeChainThor blockchain is to make it the foundation for a sustainable and scalable business blockchain ecosystem.
Difference between VeChain Token (VET) and VeThor Token (VTHO)
The VeChainThor blockchain is a public blockchain made for mass business adoption. Two tokens are associated with the VeChainThor blockchain – VeChain token(VET) and VeThor token (VTHO). While VET carries smart money like many other cryptocurrencies, VTHO (also called energy tokens) is used to conduct transactions on VeChain. Let us understand the tokens better.
What is VeChain Token? (VET)
VET is the token used when transactions on decentralized applications happen on VeChain’s blockchain. It can be used to store and transfer value and is available to the public for investing. VET can be bought on different crypto exchanges.
What is VeThor Token? (VTHO)
VeThor token or energy token powers transactions on VeChain where it is used as gas. When data is added to the blockchain through data or financial transactions, it needs units of computational power. The VTHO token covers the computational gas costs for all transactions in the blockchain. However, the cost will not be the same all the time as it depends on the size of the transaction being processed.
Difference Between VET And VTHO
How They Are Used
The major difference between VET and VTHO is the way both tokens are used. Even though they are used on the same platforms, they differ in their usage. The more VET a user has, the higher priority he gets. On the contrary, the VTHO token is the gas costs that confirm decentralized applications. In a way, the more VET tokens a person has, the more VTHO tokens he gets. As in cryptocurrencies like Bitcoin, VET is used to store and transfer value, while VTHO is considered energy tokens.
Apart from the usage, the tokens vary in price. Generally, one can have VTHO if he owns VET. But an investor need not have VET to collect VTHO. You can invest in VTHO that is bought from the exchange. Another fact to consider is that the prices of the two tokens are not dependent on each other. The price of VET is impacted by the user index as every transaction requires the token. But VTHO can be bought as it is for computational power. So the only thing that affects the price of VTHO is the number of transactions occurring on the blockchain per active trading hours.
Industries throughout the world have applied VeChain to find that this has boosted their performance more than ever. The VeChain platform can be effectively used to tokenize anything that can be later tracked on the VeChainThor blockchain. The following are a few industries that have flourished by implementing VeChain.
The medical industry is the one that was primarily affected by the coronavirus pandemic calling for a lot of innovations in technology and patient care. At this crucial time, VeChain collaborated with I-Dante to build the E-HCert App. This app was used to store the COVID-19 test results to ensure privacy and data integrity. Blockchain technology is best suited to the healthcare industry as the entries in the medical records have to be secure and immutable at all times, and technology promises exactly this.
Carbon Emissions Tracking
VeChain has recently designed a brilliant initiative to reduce carbon emissions. This was built by combining the technologies of IoT (internet of things) and blockchain. VeChain created a system that showered users with credits for decreasing their CO2 emissions and energy consumptions. The rewards thus achieved can be used in different VeChain services and partnered businesses.
Under this initiative, VeChain tracks data from smart devices like garbage collection vehicles, new energy vehicles, and smart appliances and records the VeChainThor blockchain’s energy consumption. After verification, this data is deployed through smart contracts that use a smart carbon reduction model to calculate the amount of energy saved on a unit basis. These units are then awarded as carbon credits to users.
Food Health & Safety
The food industry requires a lot of transparency in its processes as it is concerned with the health of the people. This is ensured by VeChain that uses internet of things (IoT) devices for the same. Every step from the food production to transport to the distribution channel is monitored to see if the quality is maintained.
For example, if a particular food item is to be kept at a specific temperature, an IoT device can be put in place to report the data of the product. If the temperature goes below or above the value, the spoiled product can be prevented from distribution. This can reduce cases of food poisoning that is one of the greatest issues faced by the industry.
VeChain has also been able to reduce food waste and distribute spoiled food items to a great extent, thus helping supply chain management.
Counterfeiting has been an important issue addressed by VeChain. This is done by making the information regarding the history and life cycle of a product available on the blockchain. For example, cooperating with a Chinese mall, Shanghai Waigaoqiao Direct Imported Goods, VeChain has tracked luxury wines. Consumers can scan a QR code assigned to a Radio Frequency Identification sensor tag or a microchip on the product that will have been scanned and tracked during the wine’s journey. So the wine that reaches the consumer will always be authentic.
Thus, VeChain plays a huge role in supply chain management to ensure consumers get the best quality products. Blockchain technology has also helped industries globally to be transparent in their procedures, thus building a better bond with the end-users.