VeChain (VEN/VET)–The long-awaited launch of VeChain’s Thor blockchain has occurred, with the VEN Foundation commemorating the first block mined.
At exactly 08:00:09 the first block was successfully mined. The VeChainThor Blockchain has officially launched. pic.twitter.com/aYZs19GoAO
— VeChain Foundation (@vechainofficial) June 30, 2018
Labeled Thor, VEN’s Main Net launch marks the transition of the currency on to its independent blockchain, thereby allowing for the implementation of the double-token innovation. Unlike other blockchains which feature Proof of Work (PoW) or Proof of Stake (PoS), VeChain follows a Proof of Authority protocol, allowing validators to mine blocks and thereby increasing the utility of transactions on the network. While these authority figures provide a small level of centralization to the technology of VeChain (not all users carry the same weight), the overall effect is the creation of a network useful for business and other entities looking to adopt blockchain for market solutions.
VeChain operates by utilizing two coins simultaneously for transactions: Vechain Token (VET) and VeThor (Thor). Participants on VeChain’s network receive Thor in proportion to the amount of VET they hold, theoretically making it advantageous for investors to acquire and hold larger supplies of VET. This provides intrinsic value to the VET token, in addition to giving investors incentive to sit on their portfolio of VET as opposed to engaging in endless price speculation. Similar to the relationship between NEO and GAS, VET is used for the creation and utilization of applications on the network, while Thor is the medium of exchange used to pay for transactions.
While Thor can be exchanged independent of VET and will carry a separate, market-dictated price, the model allows for the value of Thor to fluctuate depending on usage. If VeChain’s network becomes more heavily utilized for transactions, the cost of Thor increases in conjunction with supply and demand. The creators of VeChain believe this dual coin model to be a more efficient improvement over traditional, single blockchain currencies such as Bitcoin. While VET can be fleshed out for greater application on the network, Thor places the sole focus of the technology on increasing utility in transactions and and as a medium of exchange.
In addition to announcing the launch of the Thor Blockchain, the VeChain Foundation has also given further details on the token swap to take place for VEN, which is to occur in mid-July. Similar to the recent TRX migration to Main Net, VeChain’s updated token will mark the official start of the currency on its own public blockchain, thereby migrating away from its Ethereum-based ERC-20 roots.
Binance has already detailed their support for VEN’s token swap, in a Twitter post that also included an update for the VEN/USDT trading pair as previously reported by EWN. While the exact date for the swap has not been specified beyond mid-July, Binance has already committed to handling the technical details of the transfer, allowing current investors to keep their funds on-exchange for the swap.
— Binance (@binance) June 22, 2018
While VeChain is still trading below January’s all time high of 9.55 USD, the cryptocurrency has managed to hold a position in the top 20 of market capitalization, and is looking to build further adoption following the launch of Thor.