What is cryptocurrency VeThor and how does it work?

What is VeThor Token (VTHO)?

VeThor Token (VTHO) is a part of the dual-token system of the VeChain Thor blockchain and it plays an integral role in the functionality of the network. The VeChain Thor network is a Blockchain-as-a-Service platform which facilitates services for enterprise users that employ smart chips. The VeChain Thor network is a medium for implementing NFC chips, QR codes, and RFID trackers for the enterprise Internet of Things on the blockchain.

VeThor Token is the main method of payment in the VeChain ecosystem and it also represents the gas currency of the network. VTHO is required for every transaction made on the network, while it is also used for sending data to smart contracts. All transactions and smart contract operations are executed through the use of VeThor Token.

In essence, VeThor Token is a smart contract layer and a VIP-180 standard token. Through the use of VTHO tokens, the network enables users to initiate multi-party payments and operate multi-task transactions.

How Does VeThor Token Work?

VeThor Token (VTHO) and the native token VET are a part of the dual-token infrastructure that allows users to enjoy fast transactions and operations for enterprise services on the BaaS platform. Not a single operation with smart contracts or transactions can be done without VTHO, while VTHO wouldn’t exist without VET.

VET tokens are used to generate VTHO, where VTHO represents the cost of using VeCahin Thor, and VET is subject to market speculation. VTHO is generated by holding VET, so you can earn VTHO by holding a VET balance. The relationship between the two tokens is mutually dependent, so without VET there would be no VTHO, and without VTHO there would be no way to pay for VET transactions.

The number of VTHO you get depends on the number of VET tokens that you have. With each new block generated on the network, the system creates 0.00000005 VTHO per one VET held by the users. One block is created every 10 seconds, which means that a user with 1 VET in their account can earn 0.000432 VTHO per day. 

After VTHO tokens have been used to pay the transaction costs for sending data to smart contracts, 70% of the VeThor tokens used are destroyed and the remaining 30% are paid out to the Authority Node. The Authority Node is the body that validates transactions on the network.

Who Are the Founders of the VeThor Token?

The VeChain Thor network was created and founded in 2015 by the CEO and founder of the VeChain Foundation, Sunny Lu, who previously worked for Louis Vuitton China. At its inception, VeChain was a subsidiary of China’s blockchain powerhouse, Bitse. Later, in 2016, VeChain became a separate entity thanks to the initiative of Sunny Lu.

VeChain blockchain was rebranded in 2018 to become a dual-token ecosystem for Internet of Things enterprise solutions that operate with smart chips. Following the rebranding, the VeChain Thor blockchain and the VeThor Token (VTHO) were created to facilitate diversity.

What Makes VeThor Token Unique?

What makes VeThor Token unique aside from it being a VIP-180 standard token is the fact that VTHO makes the execution of operations on the network faster and more efficient. VET represents the primary medium for transferring value on the network, while the VTHO token allows users to diversify their involvement and separate the market speculation from the cost of using the VeChain Thor blockchain.

Moreover, VeThor Token is not related to the market value of VET but grows and moves as a separate entity that facilitates the execution of all operations on the network, having a rather specific role in the VeChain Thor ecosystem. On the other hand, the Authority Nodes, all 101 of them, that validate transactions on the network are determined by the ownership of VET, while the VeChain Foundation is in charge of selecting these nodes.

What Gives VeThor Token Value?

The value of VeThor Token depends on its use case and purpose, as well as its technical capability and the technology behind it. VeThor Token value is directly tied to the value of using the VeChain blockchain as this token is used to pay for transaction fees and smart contract operations. The intrinsic value of VeThor Token also depends on the utility of the VeChain network which helps enterprises track large amounts of data.

The supply and demand of VTHO are closely monitored by the VeChain Foundation, which can adjust variables such as gas price and velocity when necessary. This is to prevent transaction fees on the network from being affected by price changes for VET and means that the market value of VTHO may be less exposed to volatility than the rest of the crypto market.

How Many VeThor Token (VTHO) Coins Are There in Circulation?

There are currently VTHO in circulation. VeThor Token doesn’t have a limited supply unlike a great number of tokens and coins in the market, including the original crypto, Bitcoin. A limited supply acts as an anti-inflation mechanism and regulates the supply of coins or tokens. In the case of VTHO, the supply is regulated by destroying 70% of the VTHO used for transaction costs.

The remaining 30% is used to pay the Authority Node as a reward for validating transactions on the blockchain. The supply of VTHO is unlimited as VeThor Tokens are created by holding VET tokens. The number of VTHO coins in circulation multiplied by the current price of VTHO equals the market cap of the VeThor Token.

The market cap determines the rank of VeThor Token in comparison with its crypto peers, and also defines its dominance and market share.

Other Technical Data

To create the largest enterprise-grade blockchain, VeChain Thor didn’t choose any of the traditional choices when it comes to consensus mechanisms, such as Proof of Work or Proof of Stake. Instead, the VeChain Thor network uses the Proof of Authority protocol, which relies on Authority Masternodes to validate all operations on the network.

Authority Masternodes are chosen based on Know Your Customer verification, while the Foundation thoroughly checks the identities of users who apply to become an AM. Other users on the network can remain anonymous. This way, the network balances decentralization and centralization while keeping the network functional and transparent.

VeThor Token VTHO

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Bitcoin BTC

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Ethereum ETH

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XRP XRP

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How is the VeThor Token Network Secured?

The VeChain Thor network is secured through the use of the Proof of Authority consensus mechanism. The Foundation selects validators in the form of Authority Nodes who are then in charge of validating operations with smart contracts that are mostly based on the Ethereum Virtual Machine.

Authority Nodes, all 101 of them, validate transactions and data transfers across smart contracts so the network is protected from malicious activities and potential breaches. The central authority, which is the VeChain Foundation, can only control the selection of Masternodes, while operations on the network are based on a decentralized model.

How to Use VeThor Token

VeThor Token is used to initiate operations on the network. Users can only use smart contracts and make transactions with VTHO, whereas the VET token is the main medium of value transfer. VeThor Token is generated by holding VET at a predetermined ratio, and network participants can use it to pay transaction fees and fees for using smart contracts.

VTHO can also be bought and sold in the cryptocurrency market, while 70% of tokens used are destroyed to regulate the value of the VeThor Token. Authority Masternodes are also paid in VTHO, with 30% of the tokens used for transaction fees being reserved for AMs who act as validators.

How to Choose a VeThor Token Wallet?

The dev team recommends the official VeChain Thor wallet for storing VTHO. The VeChain Thor wallet allows users to add hardware and desktop wallets to the app through the use of the “observe wallet” feature. Aside from holding VET and VTHO, users can also store other tokens such as SHA, DBET, OCE, YIC, and PLA. The wallet is only available as a mobile app for now, while the team may create a desktop version as well in the future. 

There are also plenty of other places you could store your VTHO and the wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of VTHO for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of VTHO or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your VTHO, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your VTHO without hassle. Storing your VeThor Tokens with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling VTHO, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

VeThor Token Proof of Authority

VeThor Token is not a mineable cryptocurrency and it doesn’t rely on miners to validate transactions and generate blocks. VeThor Token also doesn’t use a Proof of Stake protocol, but rather uses Proof of Authority to facilitate security and validate operations on the network.

Instead of using anonymous block producers, PoA involves the VeChain Foundation steering committee authorizing a fixed number of known validators called Authority Masternodes. 

Conclusion

VeThor Token is an indispensable part of the VeChain Thor network that allows users to diversify their experience of using the VeChain blockchain. VTHO is required to cover the cost of using the network, while not a single operation on the blockchain can be performed without the VeThor Token. That is how the VeChain Thor blockchain facilitates the biggest enterprise-scale ecosystem with prompt execution of all transactions and smart contract operations.

As the network develops, VTHO is gaining more relevancy as a valuable asset in the market of cryptocurrencies and a crucial element in the VeChain Thor ecosystem.

Join the crypto revolution and start your VeThor Token journey today!

VeThor Token FAQ

Why aren’t transaction costs affected by the volatility of VET?

The VeChain Foundation aims to maintain a supply and demand equilibrium for VTHO through adjustments to variables such as gas price and velocity.

How do people get VTHO?

Every address that holds VET generates VTHO at a rate of 0.00000005 VTHO per VET per block. This happens automatically within each wallet with no need for staking, although third-party custody providers can decide if and how to distribute VET to their customers. VTHO can also be purchased on the crypto market.

How to buy VeThor Token?

Buying VTHO is as easy as visiting Kriptomat’s how to buy VeThor Token page and choosing your preferred method of payment.

How to sell VeThor Token?

If you already own VTHO and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

VeThor Token price?

VeThor Token price is in constant flux and is subject to frequent changes driven by a range of determining factors. VTHO price can vary greatly from one moment to the next to reflect the dynamics of the cryptocurrency market. You can follow up with live VTHO prices on Kriptomat.

As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, VTHO price is also affected by demand from developers and the efforts of the VeChain Foundation to maintain a supply and demand equilibrium.

The current VeThor Token price is EUR.

The 24-hour trading volume of VTHO is EUR. VTHO is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of VTHO.

Register now to begin your journey into the world of VeThor Token and cryptocurrencies with with Kriptomat!

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