VTHO acts as the facilitator in completing smart contract transactions in the VeChainThor blockchain, which uses it to cover computational gas costs.
Vethor (VTHO) cryptocurrency, is the token that powers the VeChainThor public blockchain, in the form of gas fees and other related transaction costs.
The VeChainThor blockchain was launched in 2015 by Sunny Lu, and rebranded in 2018. It combines a two-token model system using both VET, its native token, and Vethor (VTHO) to handle data on its Ethereum based blockchain. VET main functionality is the store of value, otherwise referred to as smart money. VTHO main purpose is to facilitate processes and power smart contract transactions as a unit of payment for the energy used, making it a VIP-180 standard token. When conducting transactions through the transfer of data on a smart contract using the VeChain’s blockchain, Vethor (VTHO) tokens completes the block(s) on the chain. The VeChain blockchain platform case-use focuses on the logistics and supply chain management industry to ensure compliance and account for processes.
How the VeChain Two-Token System Works
The twO-token system ensures that the costs are stable and more effective. Since VeChain uses Vethor (VTHO) to complete transactions, VET prices do not directly affect gas fees. Therefore the two tokens are co-dependent and directly related.
To make VET transactions one needs Vethor (VTHO) to complete the fees associated with the transactions. To generate Vethor (VTHO), more and more VET transactions need to happen on the VeChainThor blockchain platform. When Vethor (VTHO) tokens are used in the payment processes, 70% of the Vethor (VTHO) tokens used are destroyed. Thirty percent are retained to be rewarded to the authority node holders.
How to Purchase VeThor Token, VTHO
Both VET and Vethor (VTHO) tokens can be bought and traded on multiple cryptocurrency exchanges such as Binance, Bitvavo, BitMart, Crypto.com and Gate.io. Top level partners in the Vechain Foundation, can also be able to purchase VET from a dedicated pool. On the other hand, VET holders can generate a predefined amount of Vethor (VTHO) daily. Currently, 1 VET generates 0.000432 Vethor (VTHO) a day. The total supply of VeChain (VET) tokens is capped at ~87 billion tokens. Therefore, the total supply of VeThor (VTHO) token generated daily is ~37 million.
How VeChainThor Blockchain Uses Proof of Authority (POA) to Validate Transactions
VeChain platform uses the proof of authority consensus algorithm. This modified version of the proof of stake completes transactions for VeChainThor Blockchain. This consensus mechanism is faster and more efficient. As a result, the transaction costs are lower. To maintain stability and ensure the costs remain reasonable, a voting consensus either manipulates the amount of Vethor (VTHO) needs to complete a transaction on the VeChainThor blockchain or increases the daily amount of Vethor (VTHO) generated by holding VeChain (VET). VTHO price is directly affected by the demand and supply of VET. When more and more transactions are happening on the VeChain platform, the amount of Vethor (VTHO) increases, as a result, demand for Vethor (VTHO) goes up.
Current Partners and Actual Users of VeChainThor Blockchain
VeChain, and VeThor tokens offer a blockchain solution to tracking useful information. This solution has been adopted by major blue-chip companies in different industries and sectors, such as DNV GL, PriceWaterhouseCoopers (PwC), National Research Consulting Center (NRCC), and Yida China Holdings Limited. Besides those companies, it also has partnerships with 20+ other companies. Vechain is addressing concerns such as:
- The food sector inefficiencies — Walmart China in partnership with VeChain and PwC introduced a traceability platform using blockchain to store information of different product lines. Customers can easily get and confirm the information on different items by scanning a QR code on the items.
- Counterfeiting — LVMH uses VeChain’s Blockchain to authenticate its limited edition collection.
- Odometer tampering – BMW Group created a digital vehicle passport to help fight the war against odometer manipulation and swindling in the second-hand market. Through this the cars are able to track mileage efficiently
- Customer assurance concerns – Ricci Curbastro, Ruffino, and Torrevento winemakers pioneered “My Story”, a digital assurance blockchain solution. This allows them to validate the key components of their wine throughout the whole supply chain from the farmlands.
Is VTHO worth anything?
The price of VTHO is constantly changing. VeThor’s token price is currently (December 2021) trading at $0.00896, which even though is lower than its all-time high for the past year, $0.0286, is higher than the open price for the year, $0.000708 therefore VeThor token is still performing fairly well.
The current circulating supply of VTHO tokens is at ~42.59 billion, with a current market cap of $376.22 million, whereas the trading volume (24h) is at ~$21.98 million. On the other hand, VET has a current supply of ~66.76 billion, and a current market cap of $8.18 billion.
According to cointanking.com VeChainThor energy token VTHO has had a net positive return so far this year for its investors, having 6 positive ending months, and 4 negative months, with the highest returning month, March at 317.66%, and the lowest returning month, May at -52.73%. This trend shows an overall good bullish performance for VTHO going into 2022.
Is VeThor a good investment?
The short answer is nobody knows for sure. The overall cryptocurrency market performance has been positive throughout the year. It has gained more popularity and interest with the introduction of new ecosystems such as DeFi and NFTs. VTHO plays an important role in the overall VeChainThor ecosystem, together with its native token VET as more and more projects and companies incorporate the ERC-20 based blockchain.
VeChainThor blockchain cuts across multiple industries and sectors, which bakes in a great deal of diversification. The fact the VeChainThor platform creates a more efficient and faster way of transacting in the blockchain through its authority master nodes system. This eliminates many of the inefficiencies of other blockchains, which may create demand for more users.
This information should solely be used as a reference. It is not to be considered investment advice. Investors should do their own research and due diligence before investing in any products, as financial instruments such as VTHO are highly volatile and hold significant risks.
- Vethor (VTHO) cryptocurrency, is the token that powers the VeChainThor public blockchain. It covers gas fees and other related transaction costs.
- VTHO’s primary purpose is to facilitate processes and power smart contract transactions as a unit of payment for the energy used, making it a VIP-180 standard token.
- You can buy and sell both VET and Vethor (VTHO) tokens on multiple cryptocurrency exchanges.
- Major blue-chip companies in multiple industries use VeChain and VeThor tokens.