Key Takeaways
- VeChain (VET) is a blockchain platform built specifically to address challenges in the world of business supply chains.
- VeChain is used in various industries like food & beverage, pharmaceuticals, and luxury goods.
- The project aims to revolutionize supply chain management by making it more transparent, efficient, and trustworthy.
VeChain was first established in 2015, making it one of the oldest companies in the blockchain industry. This Singapore-based decentralized smart contract platform focuses on enhancing supply chain management processes. To do this, the team designs business applications that can be implemented into inventory quandaries.
The project recently gained considerable attention from big investors, and various promising partnerships were offered. However, even before VeChain’s newest collaborations, several companies in industries such as agriculture, winemaking, and luxury goods were already using their blockchain app.
The Technologies Behind VeChain
The Platform
VeChain offers a decentralized platform on which businesses can easily interact and transact with each other without any third parties needing to be involved. The company aims to create an operating platform dedicated to business solutions to ensure up to 10,000 transactions per second.
Their objective is to change the way supply chain management is currently done by incorporating it into their blockchain platform. The company also plans to allow dApps, ICOs, and IoT (Internet of Things) projects on the ecosystem. All of these changes suggest that VeChain aspires to evolve into a comprehensive blockchain platform dedicated to enterprise solutions.
Network nodes maintain the platform’s security. These nodes can be managed by businesses and organizations that are direct contributors to the ecosystem. The nodes offer services that include quality inspection and wallet services. They may even serve as private key management service providers.
Use Cases
Using a combination of blockchain technology and their proprietary smart chips like RFIDs and sensors, VeChain enables manufacturers to track products with unique characteristics during their lifecycle.
Therefore, by incorporating blockchain technology into IoT devices, the platform helps improve quality control and logistics methods by simplifying the product tracking process.
Through its developed technologies, VeChain brings an efficient solution to the real-world issue of authenticating and identifying counterfeit products, helping both the producer and the consumer verify the goods through asset digitization.
The Team
Sunny Lu is the CEO of the VeChain Foundation and has already become an important figure in the blockchain space. Before establishing VeChain, he co-founded the Chinese Internet start-up, which developed Qtum, a very important digital asset in the crypto space. He was previously the CIO and COO of Louis Vuitton China.
The team behind VeChain consists of 90+ employees, most of them developers. Gu Jianliang, the Chief Technology Officer, has over 18 years of experience in areas such as mobile devices and the IoT field and has created over 100 patents in several technological fields.
Kevin Feng serves as the Chief Operations Officer of the VeChain Foundation. Feng has been actively involved in many technology projects in his 12 years working as a consultant and assurance advisor for VeChain’s partner, PWC. Lastly, there is their CFO, Jie Zhang, who has vast IT expertise, as well as experience in a large variety of technological domains.
About VeChain Thor
Vechain announced an update to its project, “VeChain Apotheosis Part II: THOR Power Forged.” The development will transform the company from a supply chain management project to a full-fledged enterprise dApp solution.
Notably, the network will use two native tokens for its internal operations:
- VeChain Token (VET) – The cryptocurrency that will be used as payment in the VeChain blockchain ecosystem.
- VeChain Thor Energy (VTHO) – The token that will be used to execute smart contracts and run apps on the THOR blockchain.
VeChain Foundation
The VeChain Foundation is responsible for building the network and handling technological research and development. The Foundation encourages and supports partnerships with enterprises and businesses that want to use blockchain technology as a service.
VeChain is currently involved in partnerships with the following enterprises and companies:
- Babyghost
- BitOcean
- China Unicorn
- Directed Imported Goods
- DNV GL
- eGrid Consulting Co.
- Fanghuwang
- Healthcare Co Ltd
- Hyperledger
- Jiangsu Printed Electronics Co Ltd
- Kuehne & Nagel
- MadeForGoods
- Microsoft
- PwC (Singapore and China)
- Renault
- Xiamen Innov Information Technology Co Ltd
- China State Tobacco Monopoly Administration
- China National Tobacco Corporation
About The VET Token
The platform uses its own native token, VET. These tokens will be used as GAS, which is required for executing smart contracts. In addition to this, VETs will also be used to incentivize users, as tokens will be given to network nodes that assist the ecosystem through their operation.
Where Can I Buy VeChain (VET)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
KuCoin – KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.
Coinbase– Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Is VeChain (VET) A Good Investment?
Pros
- Strong Partnerships – VeChain boasts several impressive partnerships with established companies like DNV GL, BMW, and PwC.
- Focus On Enterprise Solutions – Unlike some crypto projects with vague use cases, VeChain targets a specific industry (supply chain management) with clear business value propositions.
- Scalability & Sustainability – VeChain’s Proof-of-Authority (PoA) consensus mechanism allows faster transaction processing than Proof-of-Work (PoW) blockchains while being more energy-efficient.
Cons
- Competition – Other blockchain projects target the supply chain management sector, so VeChain must compete to secure industry dominance.
- Business-Oriented Focus – While valuable for enterprises, VeChain’s focus might not appeal to individual investors seeking more general-purpose crypto applications.
- Limited Adoption Despite Partnerships – Despite partnerships, widespread adoption of VeChain solutions within businesses is still emerging.
Final Thoughts
VeChain offers blockchain-based solutions for operational problems to businesses in various industries. With a growing list of high-profile partners, VeChain is on its way to becoming a highly sought-after service for processing and product control.
Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
