Dusting out What is VeChain (VET) Vs. What it is not

Old Guys explain stuff best.  VechainThor is a Layer 1 public Blockchain built to solve adoption hurdles faced by #Ethereum & unleash the power of Smart Contracts on the real economy. – Paying gas fees – Stable Tx costs – Scalability & congestion + much more

Way back in December 19, 2020 Some clarifications about VET provided by MartyFly:  VeChain (VET) is not a supply chain (SC) coin. VeChain is a public blockchain (like ETH) on-which you can build anything you want. The reason a lot of people think that VET is a SC coin is that a lot of the first use cases built on VeChain are SC related.

This is because the whole idea of VeChain started with the CEO Sunny Lu who worked at Louis Vuitton as Chief Information Officer on an internal project called “track and trace”. They wanted to expand that project and that’s how he discovered blockchain technology.

Sunny noticed that 90% of the blockchain start ups were developing apps related to financial services, which is considered difficult because of the strict compliance regulations. He also realized if you have no commercial activities on the blockchain and just go VET bare-handedly to develop and promote blockchain apps, you are playing in an empty field. So when VeChain started in 2015, the idea was to begin with traceability and anti-counterfeit. The next step was to put more commercial activities on the blockchain.

Once you established a business ecosystem, it would become a natural move to provide the financial support on the blockchain. You can already see the expansion of usecases. Healthcare, Certification, Carbon credits, Sustainability, Gas industry. The list goes on.

This rapid expansion is due to the consensus algorithm called Proof of Authority whereby 101 companies put their reputation at stake. This results in a decentralized IaaS, existing of 101 companies with 101 different business models, services and client networks.

You could see VeChain as a decentralized IaaS whereby you pay VTHO to use that IaaS (store data / run smartcontracts). The same way you pay AWS credits to pay for Amazon Web Services, a centralized IaaS.

So, the VeChain blockchain, with the 101 different companies, VET and VTHO, is column 2. One of VeChain’s products is called ToolChain; a kind of Wordpress for different usecases. ToolChain is a dApp using the blockchain.

Community Reaction:  It’s kind of dangerous though.  It’s probably better if Vechain stayed as a supply chain coin and become the pioneer of that space, rather than shifting to L1 NFTs and metaverse. You don’t see Monero shifting outside privacy and security that’s why they are conquering that space.