Operating on the VeChainThor blockchain, the VeChain (VET) crypto aims to amalgamate the use of distributed governance and Internet of Things (IoT) technologies. It helps in several issues related to global logistics systems to supply systems which the enterprises face.
In short, VeChain is a protocol, which aims to meet the real-time and trustless data sharing between multiple participants. Co-founded by Sunny Lu, the VeChain aims to provide enterprises the technology to launch new kinds of DApps. Operating on the proof-of-authority (PoA) consensus, the VET crypto is able to verify transactions to the VeChain’s public ledger, VeChain Thor.
The token on Friday has been seeing an impressive rally by 8% and volume too surged by 12% on the back of the announcement that Government of Inner Mongolia has chosen VeChainThor to power a massive, full traceability platform.
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How does VeChain crypto work?
Through the PoA consensus, the users can verify and add transactions to Authority Masternodes. While the PoA mechanism helps process large transaction volumes, but it also depends on a central authority to ensure seamless processing of the transactions.
Besides its native token VET, the VeChain also uses VTHO, which is used for the transactions on its blockchain. This ensures price volatility of the VET coins. Due to its transparent system, it not only reduces slack, but also reduces costs through trustless automation via smart contracts.
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How is VET faring?
VET is ranked 31 as per its market cap on CoinMarketCap and was trading at US$0.094689 with a trading volume of US$396,377,043. VET was up by 7.22% with a market cap of US $6,089,950,396 and a circulating supply of 64,315,576,989 VET coins.
Experts predict that VET token has the potential to grow in the coming years. Due to its unique protocol, it has potential to grow by +500% in the next five years and they predict that VET could reach US$500% by 2026. Only time will tell, whether it does reach such high, but the recent news of Government of Mongolia government choosing VeChainThor could help it strengthen further in 2022 as well.
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