VeThor Cryptocurrency

VeThor cryptocurrency refers to a secondary token that is a part of the VeChain Thor blockchain’s dual token system. It plays a pivotal role in the network’s functionality. Besides being the primary payment method of the VeChain Thor ecosystem, it represents the network’s gas currency.

The executions of all operations related to smart contracts and transactions occur via the utilization of this token. Moreover, the VeChain Thor blockchain allows users to manage multi-task transactions and conduct multi-party payments. This token has no relation with VET’s market price. Its value depends on its purpose and use case in addition to the technology and technology behind it.

• VeThor cryptocurrency refers to a digital currency running on the VeChain Thor network, which involves a dual token system. The token has a mutually dependent relationship with the other token on the network, i.e., VeChain. 
• VeThor represents the gas currency of the network. Moreover, it is the primary payment method of the blockchain. Some factors influencing its value in the market are its use cases and purpose.  
• A key difference between Polygon and VeThor is that the former is mineable. 
• There are multiple benefits of VeThor cryptocurrency. For example, it improves the efficiency of operations. Moreover, it stabilizes transaction costs.

VeThor cryptocurrency refers to the token powering the VeChain Thor blockchain network, which has a dual token model system. This digital asset aims to power smart contract transactions besides facilitating processes. When carrying out transactions via data transfer on any smart contract utilizing the VeChain Thor blockchain, the VeThor (VTHO) tokens complete the blocks on the network.

Note that conducting any operation concerning smart contracts is impossible without this cryptocurrency. That said, VeThor tokens would not have any existence without the VeChain (VET).

VeChain tokens are necessary to generate VeThor cryptocurrency, where the latter represents the cost incurred to utilize the VeChain Thor network. Individuals can earn VeThor tokens if they hold a VET balance. It is important to remember that both the tokens are mutually dependent. Without VeThor, one cannot pay for transactions involving VET, and as noted above, without VET, VeThor tokens cannot exist.

The total number of VeThor tokens individuals get depends on how many VET tokens they have. For the generation of every block on the blockchain, the creation of 0.00000005 VeThor tokens takes place per each VET the user holds. The creation of a block occurs every 10 seconds. This means a user holding a VET token can generate 0.000432 VeThor tokens every day.

Once the use of VeThor tokens takes place to cover the transaction costs required for transferring data to the smart contracts, a larger portion (70%) of the VeThor tokens is destroyed. In comparison, the remaining 30% is received by the Authority Node, which is the body validating transactions of the VeChain Thor blockchain.

This cryptocurrency is not mineable; it does not depend on miners to generate blocks and validate transactions. Also, this token does not utilize a proof of stake (PoS) protocol. Instead, it utilizes proof of authority for validating operations and facilitating security on the network. Rather than utilizing anonymous block producers, this consensus algorithm involves the authorization of a specific number of known validators known as Autority Masternodes by the VeChain Steering Committee.

One can trade this cryptocurrency by following the steps mentioned below:

1. Create an account on the website of a reliable cryptocurrency exchange that allows one to buy and sell VeThor cryptocurrency. One can also register using the mobile-based application of the exchange.
2. After signing into the profile, select the relevant option to find out about the options available to purchase this cryptocurrency in the respective country.
3. Transfer funds to the new account to be able to fund the purchase of the tokens. Note that one can also opt for third-party payment channels if the cryptocurrency exchange allows the same.
4. Next, check the fees and payment details to confirm the order at the current price.
5. Complete the payment.

After buying the VeThor tokens, store them in a crypto wallet to keep them safe.

Let us look at a few VeThor Cryptocurrency examples to understand the concept better.

Example #1

Suppose Sam is a cryptocurrency trader who thinks he can make short-term gains by trading VeThor cryptocurrency. He purchased 500 tokens at $0.5 via a cryptocurrency exchange. Within 5 days from the date of purchase, the token’s price surged 100%. He sold the tokens, making the most of the opportunity. As a result, he made a profit of $250.

Example #2

In June 2023, Coinbase revealed through an announcement that it intends to list VeChain and VeTheor cryptocurrencies, which will further grow the platform. The reason behind this move is that the cryptocurrency exchange operator wants to list new assets that meet its parameters for technical security and legal compliance. It is disregarding factors like project popularity and market capitalization. The listing of these two tokens was a catalyst for a price increase. Following the announcement, the price of VTHO, as well as VET tokens, surged.

Let us look at the benefits and limitations of VeThor cryptocurrency.

Pros

• This is a VIP-180 standard token: It is considered the ERC-20 standard’s superset. The standard ensures efficient functionality.
• This cryptocurrency makes the implementation of various operations faster and more efficient.
• Having a couple of different cryptocurrencies on the same blockchain network results in more stable transaction fees.

Cons

• This cryptocurrency aims to solve different problems existing on the Ethereum network for organizations. However, its value might not rise if it does not become popular among crypto users.
• The development of this cryptocurrency and the entire platform is under the control of central committee members and some stakeholders. The platform’s foundation can make crucial decisions anytime, for example, changing the monetary policy. Per the founders, they’re aiming to achieve an ideal balance between centralization and decentralization. However, it is not aligned with the core principles concerning cryptocurrency.

Whether to invest in VeThor or Polygon can be a challenging decision for individuals new to the cryptocurrency world. Knowing the key differences between the two tokens can help one decide which one is more suitable for their investment requirements. So, let us look at their distinct features.

This article has been a guide to what is VeThor Cryptocurrency. Here we explain how to mine and trade it, its examples, pros and cons and differences with Polygon. You may also find some useful articles here -

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