- The primary objective of the partnership is to build a blockchain infrastructure for the biofuel sector.
- VeChain has been establishing new partnerships in recent months.
Per a press release issued by the UCO network, it has partnered with VeChain (an enterprise blockchain provider) to develop blockchain systems for the biofuel space. The official statement reads, “UCO network has a full alignment with the VeChain foundation over governance, social, and environmental goals. This alignment has been a crucial contributor to the creation of this natural and exciting partnership.”
Why the partnership with the UCO network?
The UCO network is the first biofuel platform built on the blockchain aimed at solving issues related to environmental, social, and governance (ESG) systems. Its services include cooking oil traceability solutions. But with emphasis on compliance with the renewable energy directive ii of the European Union. The network explains that the platform combines two novel technologies (the Internet of Things, IoT technology, and blockchain technology).
Consequently, supply chain fraud is less likely in the used cooking oil (UCO) industry. Under the partnership terms, VeChainThor will be the UCO network’s layer-1 blockchain provider. Thus, UCO can utilize VeChainThor’s functionalities, such as transaction dependency, multi-party payment, controllable transaction lifecycle, and multi-task transaction.
These features will make the UCO network’s layer-1 development more user-friendly. According to the press release, VeChain will address some of the UCO network’s issues with its PoA consensus mechanism. The most significant problems are wasteful energy use and ineffective upgrade processes.
VeChain’s recent partnerships
VeChain has been in various new collaborations in the last couple of months. Last month, the enterprise blockchain provider partnered with three firms from different sectors. On August 29, it partnered with TruTrace technologies (developer of a blockchain-built platform for pharmaceutical industries, food, apparel, and legal cannabis).
The partnership enhances blockchain adoption and ensures product authenticity and governance. Earlier in the month (august 10), TruTrace also announced a collaboration with OrionOne to promote blockchain adoption among logistics firms and service providers.
Nearly a week before announcing the partnership with OrionOne (August 3), VeChain announced a partnership with Amazon Web Services (AWS). Under the terms of this partnership, AWS would be the new technical partner for VeChain. Thus, the blockchain company can accomplish its set objectives within the shortest period. One such objective is the development of carbon-neutral digital infrastructure via its VeCarbon initiative.
The UCO space
While biodiesel is the future fuel, recycled UCO (used cooking oil) is the primary determinant of this significant change. According to researchandmarkets.com, the UCO market worldwide would likely be worth over $10 billion within the next six years. That would represent a 64 percent growth from its worth as of 2021.
One major problem plaguing this industry is that 33 percent of UCOs across Europe are fraudulent. Hence, the UCO network aims to solve this problem by developing a public blockchain protocol with the $UCOIL as the governance token for the protocol. This partnership with VeChain represents a significant turning point in providing a solution to this problem.