What Is VeChain (VET)?

Blockchains are characterized as super fast as they process and complete cumbersome transactions seamlessly. In turn, it gives them an edge over traditional ledgers. Having seen the limit of the existing blockchains, it would be amazing to work on a different one that combines DeFi and CeFi features and focuses on providing an improved supply chain and product lifecycle management through the use of distributed ledger technology (DOT) that also enables its business partners and developers to adopt blockchain solutions for business and create a robust and sustainable ecosystem. All this can only be found in VeChain (VET). The latter also offers users a variety of new functionalities that make it ideal for businesses seeking to enhance supply chain protocols and business processes.

Roots of VeChain

VeChain is a Shanghai-based company run by Vechain Foundation. It was founded by Sunny Lu, a former executive at the Louis Vuitton China. The protocol began on the Ethereum (ETH) blockchain as a support ground to garner funds to develop its own blockchain. Today, it operates within the native VeChain ecosystem. It also started providing features geared directly to business clientele. There is speculation that supply chain issues must have inspired Sunny Lu to develop the idea. It started as a sister company of Bitse, one of China’s largest blockchain companies, and is among the few blockchains that already have a substantial customer base among established companies.

The platform offers a blockchain solution to businesses while building a trust-free and distributed business ecosystem to enable transparent information flow, efficient collaboration, and high-speed value transfer. Specializing in blockchain and IoT technologies, VeChain has become one of the few blockchain platforms with real-world business applications adopted by reputable enterprises across multiple sectors worldwide. The company operates in Shanghai, Singapore, Paris, Luxembourg, Palo Alto, Tokyo, and Hong Kong. As of June 2021, VeChain is having over 100 international professional members and 50 professional blockchain developers.

VeChain Overview

VeChain (VET) is an enterprise-focused supply chain and logistics blockchain solution with a long list of large partnerships. It is a distributed business ecosystem that leverages blockchain technology. Some consider VeChain a mature entity due to its uniqueness, with many real-world business applications already existing on its blockchain, VeChainThor. According to its whitepaper, VeChain breaks asymmetric information problem and allow ownership of data to return to and empower its owner. Apart from that, it claims to offer a 360-degree view of necessary information linked to a product and its business processes such as storage, transportation, and supply to authorized stakeholders and create greater market transparency.

VeChain provides businesses with the ability to track an enormous amount of data regarding items, such as quality authenticity, storage temperature, and transportation status. All these features are provided via a trust-free and distributed business ecosystem, reducing overhead and improving accountability. According to the VeChain whitepaper, the platform offers are not just theoretical. Instead, they are solutions tested and discussed with over 700 enterprises and implemented for over 100 fortune-level enterprises. Its top-notch blockchain activity earns it a 5-star rated Blockchain Service Certificate from TÜV Saarland, a European certification body.

How Does VeChain Work?

VeChain utilizes a variety of technologies to accomplish its goal to streamline the supply chain sector. For example, VeChain uses various Radio Frequency Identification (RFID) tags and sensors to monitor critical data during shipment. This information is broadcast in real-time across the blockchain.

VeChainThor blockchain operates similarly just as other business-use blockchain platforms. Businesses use VeChain’s fully functional Blockchain-as-a-Service (BaaSe) product called ToolChan to build their blockchain-based solutions. It also supports smart contracts.

In addition, VeChain utilizes integrated IoT and DLT technologies. The integration of these brings internet-of-things or billions of smart devices that are in use globally. These devices are smart because they possess some sensors and the ability to communicate data online. IoT and Blockchain technology makes perfect sense. They provide an affordable way to monitor such a vast amount of data in near real-time via consensus. Consequently, VeChain isn’t the only project exploring the merger of both techs.

VeChain Tokens: VET vs VTHO

As a platform previously residing on the Ethereum blockchain, although it now operates on its owned VeChainThor blockchain, still it dualizes its token. Ethereum blockchain can be credited for such features. The VeChainThor blockchain is a public-intended blockchain for mass business-purpose adoption. VeChain has VET and VTHO tokens on the platform. They both serve different purposes.

VET token is a cryptocurrency. It is responsible for sorting value from smart contracts. It serves as an increment of value within the VeChain blockchain. Transactions on DeFi applications occurring on VeChain’s blockchain are carried out using a VET token. Meanwhile, VTHO is not a cryptocurrency. It is a gas fee for powering a smart contract. VTHO is usable for smart contract execution and programming by developers. It is not publicly available, only for the developers’ use.

VeChain’s Utilities and Use Cases

VeChain has proved to be practicable in the following areas:

• Anti-counterfeiting. This is recognized as one big problem in the luxury goods market. By integrating the VeChain blockchain solution through an encrypted chip and then using the chip to log and trace logistics, warehousing, maintenance, and resale, owners can be sure of authenticity. This has been tested and proven right by a Shanghai Waigaoqiao Direct Imported Goods for tracing luxury wine. Additionally, Renault luxury vehicle has used it to test vehicle components.
• VeChain Internet of Things (IoT) devices can be deployed across the supply chain, including products, vehicles, and warehouses. Then, environmental and location-based data from these devices can be uploaded, verified, and stored in a tamper-proof, decentralized manner on the VeChainThor blockchain. Solutions like this are already in effect for several companies, including Shenzhen Yuhongtai Foods.
• Health records. Healthcare record systems are flawed for old-versioned practice. A proper health record is essential. With human labor, there are inefficient and insecure record systems for lab results. The VeChain blockchain can offer a seamless, secure, and efficient record system accessible to patients and other authorized parties. A VeChain-based E-HCert App will be rolled out to patients of both the Mediterranean Hospital of Cyprus and Aretaeio Hospital in 2021.
• Further, by driving carbon reduction by tracking carbon-emitting activities, VeChain also allows consumers to be involved in a carbon-saving scheme. When smart devices, such as cars or appliances, show that consumers generate less carbon, they can then receive credits to be used on energy services. BYD, a Chinese electric car brand, already operates a Vechain solution.

Conclusion

To sum up, the VeChain (VET) is designed to be used by both small and big businesses, it will be at an advantage to explore its full potential. The most important of all its differences from other platforms is that the developers, the brain behind the VeChain project, had no desire to create a fully decentralized platform. Instead, their goal was to marry the best DeFi and CeFi sectors, creating a balanced platform that provides users with transparent information flow, efficient collaboration, and high-speed value transfers.