In this guide, I will walk you through all you need to know about mining VeChain.
VeChain is a Proof of Authority blockchain. This means that only vetted participants can add new blocks to the blockchain. It’s not open for anyone to set up a machine and mine. In fact, VeChain doesn’t even use a proof of work consensus mechanism which is what you need in order to mine. However, there is an indirect way to mine VET. The rest of this article is devoted to explaining how you can mine VET using Unimineable.com
Vechain is a smart contracts application that provides supply chain management solutions and runs on the blockchain network. Vechain’s mission is to enable fast, easy, and effective tracking of assets on the supply chain using the blockchain-based Internet of Things (IoT).
See What is VeChain for more
Like most blockchain solutions within the crypto space, it has a native token, the Vechain token (VET). And like most crypto tokens, VET is mined and traded on major cryptocurrency exchanges.
How to start mining Vechain on Unmineable
Before VET tokens are availed to the crypto market, they are mined on the Unmineable platform. The following steps lead you to successfully mine VET tokens on the Unmineable platform:
1. Download and set up your VET mining software
On the Unmineable download page, download the right Unmineable mining software.
Your mining hardware will determine the kind of mining software to download.
In case your hardware is not compatible with UnMiner for Windows, you can use either of the following alternatives:
- XMRIG – for CPU mining (desktop or laptop).
- PhoenixMiner – for GPU mining (using graphics card)
- T-Rex Miner – for GPU mining (using graphics card)
In addition, you can also download the Unmineable App to monitor and manage your mining operation on your mobile phone.
2. Determine your VET mining profitability
It is a good idea to know how much you would earn based on your hardware’s hash rate. The UnmineablesBest calculator can do this for you.
To use the UnmineablesBest calculator, do the following:
- Choose your mining algorithm. You can use IronFish for VET mining
- Enter your Miner’s hash rate
- Click the ‘Calculate’ button to get the profitability rate
3. Select the VET coin to mine
Now that you are satisfied with how much you can earn from mining VET, the next step is to select the VET coin to mine.
4. Establish the VET mining cost
The Unmineable platform charges a flat rate of 1% mining fee. The Unmineable Earn referral program enables you to lower your mining fee. The referral code can reduce this rate to just 0.75% mining fee. This is by far one of the lowest mining fees in the cryptocurrency industry.
5. Set your VET mining operation
Use the Task Manager on your Unmineable platform to set up your mining operation. This involves the following key steps:
(a) Allow the VET mining software to autodetect your hardware
Immediately before installation, your hardware will be automatically detected during the initialization process.
(b) Select your VET coin and its wallet
- Select the VET coin from the dropdown list in the first window pane as shown in the figure above.
- Insert your wallet address in the second window pane as shown in the figure above.
(c) Set your VET mining hardware’s options
To make sure that your hardware does the right thing, take the following setup steps:
- Select your mining hardware – either GPU or CPU
- Set your GPU/CPU memory size
- Set the GPU mining algorithm
(d) Enter your referral code (if any)
As we’ve already found, a referral code will significantly lower your mining fees. To utilize your referral code, do the following:
- Set your app’s worker name – this is done randomly by the automatic system.
- Enter the referral code that you have
- Press the ‘On’ button if you want mining to start immediately you switch on the machine. Otherwise, press the ‘Off’ button to manually start the mining operation during any given mining session.
(e) Set up your mining app’s behavior
Just to improve your user experience, you need to set up your app’s behavior. To set up the app’s behavior, do the following:
- To minimize your app to the system tray whenever it is running, click on the ‘On’ button. Otherwise, click on the ‘Off’ button.
- To start the mining app on Windows login, click on the ‘On’ button. Otherwise, click on the ‘Off’ button.
6. Start mining VET coin
As per the above figure, the App’s interface shows basic details of your mining operation. If you are ready to start mining, click the ‘Start’ button.
7. Monitor your VET mining progress
It is a good idea to monitor your VET mining operation. To do so, download and install the Unmineable free app.
8. Earn your VET block rewards
After a successful mining operation, you will earn rewards for your new blocks. There are two options to push these rewards into your wallet:
- Automatic wallet transfer – in this transfer method, set up the transfer threshold so that your payout amount will be automatically pushed to your wallet upon reaching the threshold.
- Manual wallet transfer – in this transfer method, you manually transfer your rewards provided that the minimum threshold has been achieved.
How Vechain works
To understand how Vechain works, it is important to grasp the following:
1 The background
Sunny Lu founded the Vechain Thor Blockchain in 2015. Lu is the former CIO of Louis Vuitton China. His work and experience as Chief Information Officer (CIO) global enterprise with a large supply chain network inspired him to form the Vechain blockchain.
2. The concept
Vechain Foundation endeavors to leverage the immutable nature of blockchain technology to provide high-integrity information flow in the supply chain industry. Since the supply chain business processes are heavily characterized by managing assets in motion, Vechain employs the Internet of Things (IoT) smart chips embedded in the respective assets to convey trackable information about the assets’ position and integrity within the supply chain.
3. The protocol
Initially, hosted on the Ethereum blockchain, the Vechain platform issued the VEN token to the blockchain community. This was an ERC-20 token based on the Proof of Work consensus algorithm. However, due to several bottlenecks on the Ethereum smart contract platform, Vechain had to form its own blockchain platform.
Vechain’s blockchain employs the Proof of Authority (PoA) protocol. In the PoA consensus protocol, an Authority Master Node must acquire a minimum number of coins. Unlike the Proof of Work (PoW) algorithm which consumes much energy, PoA has low energy consumption. This results in less carbon print due to lower carbon emissions.
4. The tokens
The Vechain Thor (VET) platform has two tokens:
- VET tokens – they are used to transfer value across the network.
- VTHO tokens – Also known as VeChain Thor Energy (or VETHOR token), this token is used to power transactions on the network. In essence, it is a ‘gas’ token.
5. The governance
A decentralized system such as the Vechain network needs governance. in the crypto industry, this is achieved by exercising one’s voting rights by using governance tokens.
Based on the POA consensus protocol for the Vechain ecosystem, the distribution of votes is anchored on the following parameters:
- VET holdings – VET holders with a minimum qualification threshold of 1 million tokens are assigned 20% of all votes.
- KYC disclosure – VET holders with proven KYC disclosures and a minimum qualification threshold are assigned an additional 10% of all votes. This sums up to 30% of all votes.
- Minimum number of validators – The PoA consensus protocol requires a minimum of 101 master nodes to reach a consensus on any decision. Authority nodes must have approved KYC disclosures.
6. Potential use cases
The Vechain whitepaper envisages blockchain-powered solutions going beyond the supply chain industry. Thus, cutting across various domains. These solutions also target large corporations with vast digital asset businesses. Some of the use cases include:
- Decentralized digital car maintenance book
- Remote radio frequency identification of assets
- Capturing and sharing trackable information using QR Codes
- Managing the Initial Coin Offerings (ICOs)
- Digital assets exchange platform
- Smart contracts transactions platform
7. Target clientele
Vechain network offers blockchain solutions to business owners from different industries whose business activities involve supply chain management. It also targets large corporations that have a significant holding of digital assets.
How to stake VET
While you can’t mine VET you can stake it. In return for doing so, you earn VTHO which is used to pay for blockchain operations. You don’t need to lock up your VET with a validator to start earning VTHO. All you need to do is send your VET to a VeChain wallet and you will start earning passive income.
Up Next
What Is VTHO Crypto and Is It a Good Investment?
In this post, I will explain what VeChain’s VTHO crypto token is and what it does. Next, I will score it across four different dimensions (team, product, tokenomics, and momentum) to decide whether it is a good investment or not. Read more.