What Is VeChain

What Is VeChain

What Is VeChain?

VeChain is an enterprise-grade blockchain platform founded in 2015. The goal of the project is to enable efficient digital collaboration between businesses through decentralized applications (DApps) and the VET token executing them. 

VeChain is a revolutionary tool for supply chain management, paving the way towards full transparency, accountability, and trust. Several Fortune 500 companies are already using it for everyday operations. This level of adoption in the business world is unmatched. 

If you want to know why it’s so successful, let’s investigate together. 

 

History of VeChain

VeChain was created by the former manager of operations at Louis Vuitton China – Sunny Lu. Built on the foundation of Bitse, one of the largest blockchain companies in China, VET was positioned as a solution for large-scale enterprises. Users can learn a lot about VeChain’s goals and roadmap in its white paper. 

Before VET, the company used the VEN token on the Ethereum blockchain. After a rebrand in 2018, VeChain started using VET on a separate blockchain. Interestingly, it has found its target audience and a substantial customer base fairly quickly.

What Makes VeChain Unique?

Many investors choose to buy VeChain crypto because of its smart contract features, highly valuable for production, shipping, or other business processes. We will discuss some of the use cases outlined in the white paper and discovered in practice in the next section.

VET creates a verified chain of ownership through its public ledger. This, in turn, is possible through a consensus mechanism known as proof of authority. Unlike Bitcoin and Ethereum’s energy-intensive proof-of-work systems, a PoA strategy is much cheaper and more sustainable. It uses identity as a stake – this is, developers assign a small and designated number of blockchain actors and give them the power to validate transactions. 

VeChain is one of the very few blockchains and crypto platforms https://geeksaroundglobe.com/where-investors-store-cryptocurrencies/ approved by the Chinese government. If other features don’t make VET exceptional, being in China’s good graces does the trick. 

Current Solutions

VeChain has found particular recognition in the following industries:

  • Food safety and traceability – VeChain tackles the lack of transparency, potential food safety problems, and low-level digitalization by offering immutable origin, cross-border, and full-process traceability.
  • Automobile – Helps assess the quality and authenticity of auto parts and share data with third-party service providers (car insurance, used cars trading, auto-finance, etc.).
  • Logistics – The vital information generated during transportation can now have a guarantee of authenticity, and there is no risk of data being tampered with or altered.
  • Retail – VeChain utilizes Smart Tags (NFC/RFID/QR Codes) for lifecycle management of retail products (channel management, after-sales service, insurance for high-value goods, etc.).
  • Digital content distribution – Blockchain makes intellectual property traceable, which is useful in copyright registration, content distribution, and similar activities. 
  • Document management – VeChain helps manage documents, bills, certificates, and contracts,  eradicating the malicious act of counterfeiting paper-based records.
  • Agriculture – VeChain’s big data platform facilitates the development of smart agriculture and industrial upgrading.
  • Digital carbon footprint and sustainability – Public blockchain provides an elegant solution to re-engineer carbon footprint data management.
  • Liquified natural gas – The solution keeps track of all data generated during the transportation, storage, and transaction of LNG. Currently, this is one of the most popular uses for VeChain.

Partnerships, Connections, and International Operations

The list of VeChain’s partners is truly outstanding. As mentioned earlier, the technology is already used by well-known Fortune 500 companies as well as many other projects with real-life utilization. These are China’s divisions of BMW, H&M, LVMH, Walmart, and Bayer, PICC, ENN, Shanghai Gas, just to name a few.

The two most important partnerships (at least, so far) are PwC and DNV GL.PwC is the second-largest professional services network in the world and one of the Big Four accounting firms, and DNV GL is an internationally accredited registrar and classification society. As you can guess, both are highly beneficial for VeChain’s reputation.

The Success of VeChain and Future Prospects

One of the biggest telling signs that something can be a profitable long-term investment is big-name supporters. In the case of VeChain, there are several billionaire venture capitalists who saw the potential in it. Not only that, but they also put their money on it.

Jim Breyer is one of the supporters. He is the found and CEO of Breyer Capital, known for his early investments in Facebook, Etsy, Marvel Entertainment, Spotify, 21 Century Fox, and many more. Another big name in the industry is Tim Draper, whose venture successes include Skype, Overture, Tesla, SpaceX,  Robinhood, among others.

Overall, it seems like VeChain has what it takes to grow steadily in the upcoming years.

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