VeChain (CCC:VET-USD) is a blockchain platform started in 2018 that works with companies to monitor activity at every stage of the supply chain. Given the problems in the global supply chain at ports and trucking, this blockchain is a very useful solution to help at this point. As a result, expect to see VET crypto make big moves over the coming year as more companies adopt the technology.
Over the past year, VET has done quite well. It ended last year at 1.908 cents per token. As of Nov. 25 it was trading at about 13 cents. This means the crypto was 6.8 times the price at the end of last year or a gain of 581%.
However, after peaking at 25.46 cents on April 17, VET crypto fell to a low of 5.783 cents on July 19. Since then it has drifted back up, but not before dipping again to 8.19 cents on Sept. 28.
However, since then VeChain has risen 58.7 cents to 13 cents. So it has been on a streak upward in the last 2 months.
Where Things Stand for VeChain
Recently VeChain made news with an upgrade of its validation mechanism to a proof-of-authority (PoA). Just like proof-of-stake (PoS), this validation method allows VeChain transactions to be authorized without the use of mining. That method requires large amounts of electricity to be spent under what is known as a proof-of-work (PoW) validation method.
The PoA mechanism is much “greener” than PoW. According to Cointelegraph magazine, it validates transactions by verifying users’ identities, while PoS does this by staking coins in the network.
This PoA methodology is typical of what happens in many retail transactions today. In fact, you cannot even set up a digital wallet account today without showing a picture of yourself and your driver’s license to the wallet system. That is another form of PoA validation.
As a result, expect to see more cryptos move to this PoA system. It also has the ability to speed up the network as every blockchain transaction has the implied authority already included in the blockchain software as submitted.
This was a major change, a “hard fork” for VeChain. The hard fork went into place on Nov. 16. It was supported by several major crypto exchanges on which VeChain trades, including Crypto.com and Binance.
Recently a small European country that no one has heard of, San Marino, with just 33,000 people, set up a vaccination system with VeChain. They approved VeChain’s NFT-based (non-fungible token) vaccination passport in order to enforce vaccination rules.
The system was set up in collaboration with a company called DNV, which specializes in digital assurance. It provides a digital Covid certificate using enterprise nonfungible token (eNFT) technology.
The bottom line is that a person’s record of past infections, negative test results and a digital vaccination certificate are in the digital passport. The passport is recorded on the VeChain blockchain platform and so cannot be changed or altered.
If this system takes off, it could bring a huge change to health systems. Authorities could keep track of the large amount of data required for digital vaccination passports using the VeChain eNFT software.
Where This Leaves VET Crypto
Supply-chain issues have been making headlines across the world recently. VeChain and several other blockchain platforms are attempting to address some of the resulting problems and issues. This includes monitoring activity at every level and tracking data.
As VeChain’s solutions pick up utility in a number of industries, its underlying cryptocurrency will also pick up value. Recently VeChain was ranked as the 26th largest crypto with an $8.4 billion market capitalization. Expect to see this continue to gain value over the next year.
On the date of publication, Mark R. Hake held a long position in VeChain crypto but did not hold a position directly or indirectly in any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.