VeChain Crypto Rating

Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.

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VeChain (VET) Rating= 525/1000

Technology (0 to 300) = 190

• Speed (0 to 50) = 40

VeChain has an impressive speed of 10 seconds per transaction. On the network, a block is developed after every 10 seconds, which requires only one confirmation for the transaction in that block to be successful. For that, it means VeChain is theoretically capable of doing upwards of 10,000 transactions per second, making it a preferred choice by startups looking for a fast and efficient payment platform. In practice we have been impressed with the speeds we have seen to date.

• Cost (0 to 50) = 25

The cost of transacting VET is very cheap. VTHO is needed to pay for writing data to the VeChainThor blockchain. This means that every transaction (sending tokens, or sending data to a smart contract) has to be paid for in VTHO. The amount of VTHO that is needed for a transaction depends on the size of the data you want to send. A simple VET transaction costs you around 30 VTHO, while sending a transaction filled with data to a smart contract can cost 1000 VTHO. Reading from the blockchain is free for everyone and does not require VTHO. At the time of writing the price of VeThor (VTHO) is $0.00043096 meaning a data to smart contract transaction would today cost just 43 dollar cents.

It should be noted that VET also automatically generates VTHO with every 10K VET being held earning 4.32 VeThor per day. Whilst this all sounds rather confusing it is all done with the purpose of trying to keep transaction costs stable.

For typical crypto exchange transactions It costs an average of 22 VET for slow transfer and 40+ for fast transfers. Hence, depending on the VET market price, it costs anywhere between $0.05 and $1 to transfer VETs. If you are sending VET via Binance today it would cost you 100 VET which as of Octoberr 2019 would cost you just under $0.40. However, if the value of VET is low ($0.01), then the transaction cost will be cheaper. But still, VET transaction costs are relatively high compared to others like XLM and XRP but much lower than peak prices for BTC and other proof of work coins.

On the bright side, VeChain Foundation recently tweeted that they are monitoring the usage and status of the VeChain Thor Blockchain and will balance the VeChain ecosystem to make it more consumer-friendly.

• Scalability (0 to 50) = 35

VeChain is highly scalable evinced by its capability to handle 10,000 transactions per second. Its developers have solved the scalability issues in two layers. The first layer is IoT-based token that tracks digital assets on the blockchain, and the second is a smart-contract layer to track ownership and build dApps to use the data. The platform is also encompassed of two crypto tokens – VET and VTHO. The two tokens are used similarly as NEO/GAS. VET is used to stake VTHO, which is used to pay for tokenized transactions. Since VET uses PoA consensus mechanism that doesn’t rely on mining, VeChain can scale much better depending on the hardware validators’ nodes. The better the hardware, the more scalability it will provide.

• Reliability (0 to 50) = 15

In January 2019 VeChain hit 1 million transactions on Mainnet. This is a sign of reliability. It’s hard to find any issues with the platform, thus earning it virtually maximum points when it comes to reliability.

Update: The VeChain buyback address was hacked on December 13th 2019 which raises serious questions about the reliability of the platform.

• Environmental Impact (0 to 50) = 50

VeChain is among the cryptocurrencies with minimal environmental impact. VET cannot be mined on the consumer market. Instead, nodes are run by organizations participating in the ecosystem to validate transactions and to keep the network in operation. Therefore unlike Bitcoin and Litecoin, which consume hefty amounts of electricity during mining, VeChain is quite environmentally friendly. Also, low computation power is required to achieve network security and consensus integrity.

• Decentralization (0 to 50) = 25

VeChain is a hybrid blockchain. This means that it balances the variables notable in both centralization and decentralization systems. People within the cryptocurrency space, especially outside the VeChain community, shun hybrid blockchain since it possesses aspects of centralization. However, the balance between decentralization and centralization is perfect as it ensures efficiency and transparency. Moreover, the idea of a completely decentralized economy sounds great, but it’s not viable for any network.

Security (-250 to 0) = -150

• Reorg, 51% & Brute Force Attack (-100 to 0) = -70

While VeChain is one of the most secure blockchain platforms today, its PoA protocol is still vulnerable to 51% attacks where half of the Authority Masternodes collude to launch the attack. Nonetheless, such an attack has never been witnessed on the platform as it is difficult to be carried out. This is because this kind of attack sets a requirement not only on the number but, more importantly, on the assumption that the rebel Authority Masternodes collude, which, in reality, is difficult to occur. Couple this to the nodes being run by reputable organisations as opposed to any Tom, Dick or Harry or mining cartels who can mine Bitcoins make VET a far safer bet.

Update: The VeChain buyback address was hacked on December 13th 2019 which raises serious questions about the security of the platform.

• Potential for Being Banned (-100 to 0) = -40

VeChain is a legal entity which has complied with the set laws and therefore cannot be easily banned. It’s one of the most regulatory compliant blockchain projects in the industry. Additionally, VET has been listed in a number of cryptocurrency exchanges including Binance and Oceanex, one of the leading cryptocurrency exchanges in the crypto space. It is not a privacy coin and doesn’t require damaging mining. The only big issue is the geo-political war against China and Chinese based companies. While VeChain is not solely based in China, the regulated USA exchanges seem reluctant to add VET at this point which is a real shame.

• Network Vulnerabilities (-50 to 0) = -40

VeChain has some network vulnerabilities which can be classified as low risk, medium risk and high risk vulnerabilities. Low risk vulnerabilities include password losses and malware in the network. Medium security incidents include unauthorized use of system privileges or access to sensitive data in the network. High-risk vulnerabilities include the total compromise of the private key or Keystore file, which will cause a significant direct impact on the security and integrity of digital wallets or private keys. Nonetheless, VeChain Foundation launched the functional CDRP to combat the security concerns and as yet the platform remains uncompromised.

Use Case (0 to 500) = 355

• Initial Main Use Case (0 to 100) = 60

VeChain was created to establish a decentralized business ecosystem to enable the flow of information securely and privately, in turn, building trust and transparency across borders and companies. The platform leverages its blockchain network to solve the problem of counterfeits and products traceability across supply chains and logistics including pharmaceuticals, logistics and audit services, wines, luxury goods, automobile, transportation, etc.
Is the token really necessary for the VeChain system to work however? Why do they need 2 tokens?

• Mainnet Live (0 to 200) = 200

VeChain launched its Thor Mainnet on June 2018. The launch marked the transition from VEN tokens from the ERC-20 standard to wholly unique tokens on their own blockchain as VET tokens, a move already endorsed by major exchanges. Since the launch, VeChain has achieved over 1M transactions on the Mainnet.

• Additional Use Case (0 to 100) = 25

VeChain is also used as a medium of exchange via VET. The foundation has increased the velocity of circulation and demand for the coin to increase its value. The speed and reliability as well as the trusted partners already on board makes this a legitimate secondary use case for this cryptocurrency.

Crypto casinos are a valid, legitimate and active use case: there are currently no VeChain casinos or VET casinos.

• Additional Working Products (0 to 100) = 70

Apart from VeChain, the foundation has additional working products including ToolChain which is a comprehensive blockchain platform offering diverse services including product lifecycle management, supply chain, process control, data deposit, data certification, and process certification. Other products provided by the foundation include Digital Carbon Ecosystem Solution, Consumer Confidence Index Platform, Automotive Passport Solution, Liquefied Natural Gas Solution, and Electronic Document Deposit Solution, among others.

Core Team, Partnerships & Developers (0 to 200) = 130

• Core Team & Developers (0 to 100) = 60

VeChain Thor’s core team includes CEO Sunny Lu, CFO Jay Zhang, COO Kevin Feng, and CTO Jianliang Gu. This C-suite started the project in 2015 with pedigrees that include serving at LV China, PwC, Deloitte, and TCL Communications. It’s a very solid team that understands the ins and outs of enterprise software solutions deployed throughout China, Shanghai, and Southeast Asia

• Partnerships (0 to 100) = 70

VeChain has very prominent partnerships, the most notable of them being the government of China, which is impressive considering China’s heavy regulations regarding blockchain projects.VeChain is listed on the board of directors of the CAICT (China Academy of Info and Communications Expertise) alongside Baidu, SAP, Huawei and other big names.
Other VeChain partnerships include PwC, DNV GL, and many others.

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