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DNV GL & PwC take central role in adoption of Vechain – Sunny Lu

  • VeChain CEO Sunny Lu has highlighted the importance of the partnerships with DNV GL and PwC. The companies have 3 of the 7 management seats in VeChain’s Steering Committee.
  • Sunny Lu believes there has to be a balance between decentralization and centralization to increase the adoption of blockchain technology.

In an interview for the news portal Qukuaiwang, VeChain‘s CEO and founder Sunny Lu talked about two of the partnerships VeChain has managed to achieve in recent years. Specifically, Lu referred to VeChain’s partnerships with DNV GL and the auditing firm PricewaterhouseCoopers (PwC). Highlighting the importance of these partnerships, Lu said the companies own about 42% of the management seats in VeChain, in other words, 3 out of 7 seats.

In this context, Lu said that it had been of great importance for VeChain to persuade these two companies to cooperate. DNV GL has contributed to VeChain’s growth with its extensive list of customers who have provided feedback on VeChain. Lu added the following:

We build systems with our users and govern with our customers.

VeChain seeks a balance between decentralization and centralization

VeChain’s CEO said that these partnerships have enabled them to ensure a governance structure with decentralization and centralization that guarantees the efficiency of the project. VeChain uses a decentralized voting system to elect a board of directors who will have a specific mandate.

Lu then spoke about the lack of adoption of blockchain technology by other companies. The CEO of VeChain sees the main problem in the fact that in the conception of other blockchain projects an absolute decentralization is being aimed at. This prevents a practicable governance structure, as Lu noted:

So, is it better to be centralized or decentralized? My opinion is that there is no absolute “decentralization” or absolute centralization. Ultimately, a balance must be found between a certain degree of “decentralization”, which ensures openness and transparency, and a certain degree of centralization. Ensuring efficiency as well as the direction of development

VeChain’s CEO also said blockchain technology should have use cases. He was also critical towards Bitcoin, Ethereum and other cryptocurrencies that only “mine and flip a coin to make a profit”. Lu believes this also contributes to the low adoption of blockchain technology. He added that market price volatility also does not contribute to increased adoption.

VeChain’s CEO explained that when a company develops an application, it will have to contend with any swings in costs. At the time of implementation, the company will have financial problems. Therefore, Lu said, VeChain is committed to developing a solution that will increase adoption:

This is one direction of our efforts, and we want to make companies willing to participate through a well-designed background model and an economic model. Go in and drive the application.

VeChain has been working with DNV GL since 2018. At that time, the partners set out to develop an application to track products in the supply chain. Recently, they partnered with Italian brand ICAB La Fiammante to pilot the VeChainThor blockchain to record all information about the Italian tomato supply chain. The partnership with PwC also began two years ago when the auditing firm acquired a stake in VeChain.

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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