To fully understand what is VTHO token? We first need to fully grasp VeChain.
VeChain is a blockchain-driven platform designed specifically to consolidate supply chain management and business operations. Leveraging the power of distributive ledger technology, it streamlines those processes and information required for a complex supply chain.
The VeChain platform comprises two distinct tokens namely VeChain Token (VET) and VeChain Thor Energy (VTHO). The former is used as a value transfer across the VeChain’s network and the latter is used as a ‘gas’ token to empower Smart contract-based transactions.
According to the developers of the VeChain platform, “Their aim is to build a trust-free and distributive business ecosystem to pave the way for transparent information flow, efficient communication, and an expeditious value transfer.”
Supply chain data for business processes are currently segregated in silos amongst numerous stakeholders. This could affect information flow which is again distributed amongst a myriad of stakeholders. According to the solution proposed in VeChain’s whitepaper, blockchain technology can resolve this asymmetric information flow problem and can enable ownership of data.
How VeChain can be harnessed?
To grasp its real-life use, let’s take an example of a medical pack. Harnessing the potential of this platform, we can trace out product quality, authenticity, storage temperature, transportation medium, and the last-mile delivery of a medicine pack from the manufacturing facility to the final delivery to the end consumer.
To get this job done, VeChain employs smart chips or radio frequency identification (RFID) tags to broadcast all the essential information via a blockchain network that can be accessed by authorized stakeholders.
With sensors, all the information that pertains to the specific product can be constantly monitored and in case of any issue in the product, it can be reported to the relevant stakeholder. Besides, this technology also enables us to inform the manufacturers and customers about the potential side-effects of storing the drug packet outside the prescribed temperature range. In this way, we can ensure better product quality and service improvement.
On the other hand, with the VeChain platform, automobile consumers can own their data and can use it to better negotiate with insurance companies.
VeChain’s Blockchain Platform
The VTHO blockchain platform is a blockchain-driven product designed for widespread adoption. It has two main tokens VET and VTHO. Wherein VET token is used to represent smart money from the smart contracts. From the technical standpoint, transactions on decentralized applications that take place via VeChain’s blockchain will use VET. It is readily available for investment by the general public.
On the other hand, the VTHO token is short for VeChainThor Energy and is also referred to as VeThor energy. It is used as a medium of the transaction on the VeChain platform.
The underlying concept behind VeChain is an exact replica of the Ethereum network wherein developers have to stake a certain amount of ether tokens in order to conduct transactions to run their decentralized applications.
According to VeChain’s whitepaper, the two-token system was designed for smart governance and a predictable governance model to help decentralized application developers.