VeChainThor Energy (VTHO) is an altcoin used on the VeChainThor blockchain. Now, that is an interesting project, but this article will mostly focus on VTHO rather than the project. We will cover the uses for VTHO, where to buy it, where to store it, and how to create your own VTHO.
The Uses For VTHO
VTHO is a pretty simple token to use with one purpose – powering transactions and smart contracts on the VeChainThor blockchain.
That’s it. It has no other purpose than that. And that is a big selling point of the token because the price of it remains relatively stable, which does not cause problems if/when the price increases (ie. Ethereum fees rising when the price rises).
However, this begs the question, what is the VeChainThor blockchain?
In simple terms, the VeChainThor blockchain is a blockchain meant to help businesses with supply chain management by storing all data related to the supply chain on the blockchain. This is decentralized and much easier for all the operational aspects of a company to access the information.
A full in-depth analysis of the project is far beyond the scope of this article, but that covers the basics of VeChainThor works and why it has become increasingly popular over the years with enterprise users.
That is also why a two token system with one token used exclusively for transactions and the other used to generate the tokens makes the most sense. Businesses do not like variable costs if they can avoid it.
The next section will cover how to create VTHO and what the other token related to VTHO – VeChain token (VET) – has to do with it.
The Ways To Create VTHO
VTHO is not difficult to create, but creating it works a little differently than other cryptocurrencies. The basics are that a user must hold VET to create VTHO at the rate of 1 VET creating 0.00000005 VTHO per block mined. It takes about 10 seconds to generate a block, so this amounts to 0.0004 VTHO per day for every VET that a user holds.
VTHO is also rewarded by validating blocks on the blockchain. 70% of the VTHO used in a transaction is destroyed on use with the other 30% being rewarded to the validator node.
Now, VET has more use than just generating VTHO. It is also used to transfer value across the blockchain while VTHO is used to power those transactions and smart contracts.
In our opinion, a two token system like this is a much better way for the blockchain to operate because it keeps transaction costs stable.
Where To Buy VTHO?
VTHO is not a commonly traded token because it’s used to power transactions on the blockchain and VET generates VTHO each day. Of course, it’s still possible to purchase it, but if you want to invest in VeChain, then we strongly recommend purchasing VET rather than VTHO.
Anyway, BTHO can be bought and sold on Binance, Bitvavo, OceanEX, BitMart, and Bitrue. We recommend purchasing it on Binance because of the low fees and trustworthiness of the exchange.
As for VET, that can be purchased on a large number of trustworth centralized exchanges like Binance, Kraken, and Bittrex. All of those exchanges are trustworthy and you should not have any issue with your purchase. Go with whichever one you are the most comfortable using for purchases.
Where To Store VTHO?
You have a few different options for storing your VTHO. They include the following based on our preference.
VeChain Thor Wallet (Mobile Wallet)
This is the official native wallet for VeChain. We prefer this over the desktop wallet because it has much more functionality for VET and VTHO. The downside is that it’s less secure than a hardware wallet. However, it makes up for that with all the functionality.
It’s also free.
That said, if you are not interested in trading or using VET or VTHO, then the safer option is a hardware wallet.
Ledger Nano S (Hardware Wallet)
The Ledger Nano S has VET and VTHO compatibility. You can use the wallet to store your tokens extremely securely, but it does offer a lot of the native functionality that the mobile wallet or desktop wallet offer.
This is our recommendation if you hold a large amount of VET or VTHO and want to store it securely.
There is a desktop wallet for VeChain called VeChain Thor sync. However, it’s not that good of a wallet and fairly buggy.
We do not recommend using that wallet unless you absolutely have to use a desktop wallet. Users have lost coins because of bugs on the wallet, so use it at your own risk.
That covers it for VTHO and VeChain. Personally, we find this one of the more exciting cryptocurrency projects because it’s a tier 1 blockchain aimed at businesses rather than consumers.
Plus, the two token system that VeChain uses is much more practical and functional than the one token system that other cryptocurrency projects use. Ethereum, and other DeFi blockchains, should take a page out of that book for their next major update.