As discussions began to shift from Bitcoin (BTC) to other blockchains and their use cases, such as Ethereum network upgrades, it’s safe to say that mainstream adoption of cryptocurrencies has already occurred. However, there is one project that is already successfully integrating cryptocurrencies into the daily operations of companies: VeChain.
Supply chain management, for example, is an important but undervalued aspect of workflow in many companies. Often there is a lack of direct interaction between the parties involved, as many still use traditional methods of gathering information, making them vulnerable to counterfeit products. VeChain offers an absolute solution to these problems, automating workflows and improving seamless traceability. More importantly, the platform aims to provide various transformative blockchain solutions to alleviate business needs. Who created it, what are its advantages and why is it worth exploring? Find out about it below!
What is VeChain?
VeChain is a blockchain-based platform that aims to bring transparency, traceability and enhanced blockchain functionality to operating companies.
Simply put, VeChain integrates blockchain technology into the “Internet of Things” (IoT) to streamline the supply chain process for companies. Initially suggested as a supply chain solution running on the Ethereum blockchain, VeChain evolved in 2018 and launched its own blockchain, VeChainThor.
To expand its use in the real world, this open source network offers innovative features, allowing users in the ecosystem to create DApps that solve real-world problems. Industries such as logistics, food chain handling, tourism, healthcare and food safety have tapped its unlimited potential.
Large companies are betting on VeChain
Walmart, one of the largest multinational retail corporations operating a hypermarket chain, has announced a partnership with VeChain in 2019.
The partnership between VeChain and Walmart allows users to track food deliveries in China through an app that displays product and traceability information, such as storage conditions, delivery time, receipt, etc.
An example of the technology’s deployment to companies is the platform’s confirmation of a partnership with BMW. The agreement aims to protect BMW products from counterfeiting through a distributed recording tool to record product information such as previous repairs, mileage and other additional services. The Chinese government, under strict Gui’an regulations, has also announced a partnership with VeChain. Other associations include PwC, DNV Grant Thornton, LVMH, etc. Overall, VeChain is an enterprise-class blockchain solution that helps companies track products from manufacturer to consumer, ensuring quality and helping companies spot any discrepancies.
VeChain’s history
Founded in 2015, VeChain is the brainchild of Jay Zhang and Sunny Lu, with Lu previously serving as chief information officer for Louis Vuitton in China. It is headquartered in Shanghai, with offices in France, Hong Kong, Singapore and other countries facilitating global project integration. VeChain was first developed in 2015 with IoT and supply chain management in mind. At the time, it was using VEN tokens before moving to its own blockchain, which happened in mid-2018.
Now the platform has found applications in various other industries. It is often considered a pioneer of real-world blockchain applications.
VeChain’s main features
VeChain provides many features to various companies around the world. It is one of the first blockchain companies to balance reliability and performance. Providing transparency, VeChainThor has integrated many tools, including KYC, to support smart contracts.
Inherent management tools
VeChain combines decentralization and centralization to strike a balance while offering optimal service. Decentralization, which is at the heart of blockchain technology, has been shown to have scalability issues on some blockchain networks, such as Bitcoin and Ethereum. VeChain balances this by building VeChainThor, which aims to construct a governance model with continuous integration and continuous development.
PoA improves the transparency of the governance framework by enabling valid identity verification of 101 validators (Masternodes) authorized by the ecosystem. Each Authority Masternode goes through a KYC process based on standards set by the network.
Some features of the VeChainThor PoA protocol are outlined below:
- Low energy charge
- Improved block validation speed.
- The network is not completely dependent on masternode authority.
- Improved side-chain capability.
- The platform runs on 101 nodes, fewer than Ethereum and Bitcoin, paving the way for greater speed and reliability on the network.
- Enabled for IoT solutions
How does VeChain (VET) work?
VeChain uses a modified version of PoS called Proof-of-Authority (PoA) . Instead of staking its coins, and the Vechain Foundation chooses who becomes the validator (masternode authority). As mentioned above, VeChainThor is more centralized because it cares about speed and security. With security as a core value, VeChain uses deterministic pseudorandom processes (DPRP) to select nodes. This design helps users know whether a particular validator is authorized to generate a block or not. The platform is mainly designed for large companies and organizations that prioritize security over other possible features.
VeChain toolchain
To make VeChain more suitable for mass adoption, the platform has invested heavily in launching VeChain ToolChain, a well-coded, comprehensive blockchain software backed by the VeChainThor blockchain.
It offers BaaS, PaaS, SaaS to small and medium-sized companies to make integration into your business model even easier. VeChain ToolChain provides companies with unique ways to reinvent the supply chain and run their business more efficiently. Other features include:
- Transparency
- Product traceability
- Data storage
- Creative ways to improve the consumer experience
VET and VTHO
The VeChain ecosystem has two native cryptocurrencies,
- VeChain Token (VET)
- VeChainThor Energy, also known as VeThor (VTHO).
VET is the main token that performs all operations on the platform, while VTHO provides optimal functionality for the entire blockchain infrastructure. In other words, VTHO represents the energy used to perform payment transactions in the implementation of smart contracts on the network. Its main purpose is to facilitate transactions on the blockchain.
