If you haven’t heard about VeChain (VEN) yet, we invite you to step out from under your rock and take a closer look at the 20th largest asset on by market cap (over $2 billion USD) which is dubbed “Ethereum for business.” VeChain is a smart contracts platform focused on providing business-to-business solutions in the luxury goods, auto, retail and agricultural industries. Read on to learn more about this potential powerhouse that seeks to revolutionize the way business is done.
VeChain Overview & Applications
VeChain’s mission is to connect the world. Through the use of both the Ethereum blockchain and their own proprietary RFID (radio frequency identification) technology, VeChain is striving to to digitize and interconnect all things on a transparent, virtual network. Sounds cool, right? Like the future is now. But what does this look like? Let’s take a look at a couple of use cases:
VeCahin in the Automotive Sector
Right now the automotive industry is composed of thousands of participants that need to collaborate on a regular basis. Unfortunately, most of the communication between participants is done in traditional, old-school ways. Think paper. VeChain’s goal is to enhance collaboration by creating a digital ID for each car. This ID would be used throughout the car’s life cycle to enable record keeping from a mechanic; to allow data tracking for insurance purposes; and to transfer of ownership to a new driver. Smart. Very smart.
VeChain in the Agricultural Sector
In the agricultural industry, VeChain wants to help producers certify environmentally friendly and organic products. Using sensors and mobile feedback devices to collect data on soil and weather conditions, farmers would upload real-time information to the cloud for consistent monitoring. The information could be used to make better decisions what when and where to plant, to improve the quality and quantity of crops and to potentially minimize the negative impact of fertilizers and pesticides on the environment.
Logistics and Supply Chain
By incorporating the blockchain, VeChain will be able to better connect parties in a supply chain. Suppliers will be able to access information on a secure platform using a private key and manage goods down to the single unit for the very first time. After a client places an order, the warehouse management system uploads the data onto the blockchain. Information concerning where and when the goods were picked up is uploaded to the blockchain as an immutable receipt.
Luxury Goods
VeChain is on a mission to help manufacturers crack down on counterfeit goods.Their NFC (near field communication) technology uses embedded chips to track the source and authenticity of luxury goods such as handbags. With these chips, manufacturers can trace the product end-to-end and gain better lifecycle management and consumers can learn the unique story behind the product by simply scanning the embedded chip with the VeChain mobile application or an NFC reader.
These are just a few examples; VeChain has partnered with multiple companies from different countries including the accounting, retail, and healthcare industries. Major partners include Price Waterhouse Coopers (a Big Four accounting firm) and DVN GL (a global provider of assurance services.) VeChain has also partnered with Kuehne & Nagel, a German logistics giant based in Switzerland whose business accounts for 10% of the global shipping market share. All of these partnerships are important because they open the door to clients of these partners who may end up using and investing in VeChain.
In addition, VeChain plans to develop its own blockchain so that developers can create their own dAPPS (decentralized applications). VeChain’s cloud platform will include interface documentation, a developer toolkit and more to offer BaaS — blockchain as a service — to similar to what is possible on other smart contract platforms such as Ethereum, NEO, and EOS.
VeChain started developing its solution way back in 2015. And it completed its ICO — in just two days — in August 2017.
ICO Metrics
- Token Symbol: VEN
- Max supply of tokens:873,378,637
- Mining algorithm: token is not mined but runs on the Ethereum network.
- Token standard: ERC20
- Type of cryptocurrency: token
How Tokens Work in Vechain
VeChain tokens (VEN) are the lifeblood of the VeChain ecosystem. They are used to transfer value between entities; all participants must use VEN to get products and services. The more users there are, the higher the value of the token considering the total supply of tokens is capped.
Concerns
One of the biggest concerns with VeChain is their competition; many investors compare the company to Waltonchain (WTC). Waltonchain is also focused on supply chain management and utilizes RFID technology to help track counterfeit products using its own blockchain. But VeChain has managed to secure some sizeable partnerships and the market overall is huge so many investors feel there is room for both of these young companies.
Progress & Roadmap
VeChain was started in June 2015. Since then it was launched several improved versions of their smart contracts platform and continued to define use cases. In Q4 2017 VeChain was supposed to launch their B-a-a-S cloud platform but as of Q1 2018, the VeChain website says the platform is “coming soon.” In Q4 2017, VeChain notified investors of a rebranding campaign which will change the company name to VeChain Thor. The new ticker symbol will be VET.
Team
Sunny Lu is the CEO of VeChain. He is the former CIO and CFO of Louis Vuitton, one of the top luxury goods brands in the world. He has been instrumental in forging top partnerships for VeChain across many industries, not just luxury goods. VeChain has a robust team of 60+ directors and project managers who sit at VeChain’s headquarters in Shanghai and offices in Singapore, Paris, and Tokyo.
Conclusion
VeChain has taken on an ambitious project that spans many industries. The potential is huge, but the wide breadth may leave room for niche solutions that identify and solve specific pain points in each industry. That said, VeChain is and has been an ongoing entity for several years and have managed to solidify partnerships with top companies and brands across industries. Their seasoned and experienced management team is in a good position to move VeChain from its current top 20 position to top 10 if it continues to execute on its plan.
Website: https://www.vechain.com
Development Plan (not a white paper): https://cdn.vechain.com/vechain_ico_ideas_of_development_en.pdf
Also, be sure to check out our video breakdown of the VeChain project as well:
Also Read: TRON Review – Decentralized Content-Sharing Platform
Disclaimer:
This article was written to the best of our knowledge with the information available to us. We do not guarantee that every bit of information is completely accurate or up-to-date. Please use this information as a complement to your own research. Nothing we write in any of our articles is intended as investment advice nor as an endorsement to buy/sell/hold anything. Cryptocurrency investments are inherently risky so you should never invest more than you can afford to lose.