VeChain is a pretty young project of the Singapore-based company BitSe, which was founded in 2015. The team itself understands their product as a kind of service concept that can be used for the most diverse areas of industry.
Many projects in cryptospace function as means of payment, but have no other possible uses. In addition, many companies bring a product onto the market that has not yet been fully developed and for whose successful further development an ICO is being carried out.
Everything is different at VeChain. VeChain already has a perfectly functioning product and counts some of the largest companies in the world among its cooperation partners. However, how this is possible and what the exact goal and vision of BitSe is is explained in the following sections.
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How does VeChain work and what are the goals of the project?
Counterfeit products are a global problem all over the world, the roots of which still cannot be clearly identified. Whether branded clothing, medicines or wine, counterfeits cost companies billions in sales worldwide. Unfortunately the problem could not be solved satisfactorily until today.
This is where the VeChainThor blockchain comes into play. The use of VeChain’s technology allows the complete documentation of goods along the entire value chain. All the information that is important for transport, documentation and subsequent sales is stored here.
The products can be assigned unique identities or RFID chips that store and transmit all information on the blockchain at every stage of the transport to the end consumer. In the case of a pharmaceutical manufacturer, a VeChain compatible RFID chip can be attached to the packaging.
These intelligent sensors store all necessary metrics and transfer them in real time to the blockchain. If incorrect information occurs within the supply chain, the cause of the error can be quickly located and eliminated. VeChain also ensures fair transparency, which can be seen and understood by the end consumer, e.g. with the help of a VeChain barcode scanner on the packaging. This can effectively combat the possibility of manipulation.
Proof of Authority – A new consensus algorithm
The new VeChainThor blockchain uses a Proof of Authority algorithm to transfer and confirm information within the network. The name was coined by a co-founder of Ethereum, Gavin Wood. Put simply, this idea is a continuation of the Proof of Stake concept, where coin owners with a larger number of VeChain tokens are preferred for a block reward.
Since the launch of the VeChain-Thor Mainnet, there have been two different tokens, each of which fulfils different functions within the ecosystem. The VeChain Token (VET) is the actual means of payment of the blockchain. The Thor Power Token, on the other hand, acts as a transmission medium, taking on a function like the gas in the NEO blockchain.
All users with VET tokens will automatically receive THOR tokens credited to their wallet. For each transaction carried out, fees are charged in the form of THOR tokens, which are necessary to be able to carry out a transfer from VET at all.
This two token model should help to maintain the flexibility of the blockchain in the long run and to ensure the smooth flow of the value transfer. VeChain’s technology, however, is used in much more complex places than just the simple payment between two partners.
VeChain’s applications are manifold
Due to its compatibility and wide range of applications, VeChain has been able to establish a number of prominent partnerships. VeChain is working with Japan’s largest telecommunications provider to improve data service capacity in the area of traceability.
Furthermore, one of the world’s largest insurance companies from China, “People’s Insurance Company of China”, is also on the partner list. In cooperation with the VeChain Foundation, blockchain solutions for the insurance industry as well as for the optimization of internal processes are to be researched and further developed.
VeChain has entered into a classic cooperation with the Chinese retailer Waigaoqiao Direct Imported Goods (DIG), which also imports wine. To date, more than 10,000 bottles of wine have been scanned and tracked with a VeChain-enabled RFID chip. Here it is possible for end consumers to understand exactly from which country the wine comes and how long it has been stored in which place in the world. The vine variety or a customs declaration number is also visible.
Other industry heavyweights cooperating with VeChain include BMW, PWC, and Kühne + Nagel. This short excursion shall show how extensive and complex the application possibilities of VeChain are. The VeCHainThor Blockchain is also suitable for carrying out initial coin offerings in order to raise fresh capital for investors.
Align ICO’s on the VeChain-Thor platform
Just like Ethereum or Stellar Lumens, VeChain offers the possibility to host ICO’s to collect millions of investments. The first ICO ever held on the VeChain Blockchain was the Plair ICO. The hardcap was 30 million US dollars and the blockchain did an excellent job.
For the alignment of an ICO, the blockchain must meet the enormous requirements of processing several thousand transactions. It is important to ensure both safety and smooth process flow at all times.
Other ICO’s that are aligned on the VeChainThor blockchain:
- Mustangchain: Hardcap USD 20 million
- OceanEx: Hardcap USD 11.3 million
- Esprezzo: Hardcap USD 15.5 million
- Care unit: No further details have been disclosed yet.
- Decent.net: No further details have been disclosed yet.
VeChain – a project on the winning road
Unlike many other projects in the crypto market, VeChain is a trend-setting project that offers an unbelievable number of application possibilities. Begun in the classical trade to document and understand the transparency or origin of wine or other goods.
Whether in the communications sector or the insurance industry, VeChain’s technology offers great opportunities and potentials that are recognized and tested by more and more innovative companies.
The variety and the almost endless application possibilities in the industry make VeChain a coin, which we will hear more about in the future. We are curious to see what further news will follow from the VeChain Foundation in the future.
A video explaining VeChain in a simple way can be watched here:
Last updated: 01/07/2019