What is VeChain
VeChain (VET) is a global enterprise-level public cryptocurrency and blockchain platform that seeks to connect blockchain technology to the real world by enabling a comprehensive governance structure, a robust economic model, and advanced IoT integration. It allows manufacturers and other participants to track the movement and provenance of products in a supply chain.
A Brief History of VeChain
Sunny Lu, who previously served as Louis Vuitton China's chief information officer (CIO), founded VeChain in 2015. It was initiated as a subsidiary of Bitse, one of China's major blockchain companies, and is one of the few blockchains with a substantial client base among established companies.
VeChain's vision is to build a trustless and distributed business ecosystem platform that allows transparent information flow, efficient collaboration, and high-speed value transfers. Its initial goal was to disrupt the supply chain sector by making data actionable and transparent. It also aspires to be a leader in DApps, and initial coin offerings (ICOs) generated using VeChain and an Internet of things (IoT) intermediary.
The VEN token was originally distributed on the Ethereum blockchain. In 2018, however, VeChain rebranded to VeChain Thor and announced the Thor Blockchain which operates on a proof of authority (PoA) consensus model. It also replaced its VEN tokens VET tokens at a 1:100 ratio.
VeChain has signed strategic partnerships throughout the years with numerous firms to reach this aim. Among them is a deal with PricewaterhouseCoopers (PwC) for VeChain's blockchain-powered solutions to be utilised by the accountancy firm's customer base to enhance product verification and traceability.
VeChain has also teamed up with Renault, establishing, in combination with Microsoft and Viseo, a digital car maintenance book that cannot be tampered with and is the government technology partner for Gui'an, an economic development zone for the Central Chinese Government.
How VeChain Works
VeChain's function is to designate a unique identity to physical products, often using radio frequency identification (RFID), QR Codes, or near-field communication (NFC). Sensors collect data at each level of the supply chain; they then record it and link it to the product's identification. These are sensors designed by VeChain and manufactured by companies such as Bosch and Qualcomm.
Due to VeChain using blockchain technology, none of the records once added can be altered. It also enables the recipient of the goods to ensure that the handling of goods was proper and that the items are genuine. Since their rebrand, VET has been the currency utilised in the VeChain system: the more VET, a company, the higher their priority for using the blockchain's resources.
VET is also used to access supply chain technology to create a second kind of token, known as VeThor or Thor Power (VTHO). To upload additional information to the blockchain, a firm that wants to utilise VeChain's tracking for its supply chain must pay VTHO.
Other blockchains can also use the mainnet platform to launch their coin on the VeChain system. This platform has aided VeChain's transition from supply chain to DApps.
What is VeChain Used for
The platform can track the quality, authenticity, storage temperature, transportation medium, and last-mile delivery of a medicine pack or an alcohol bottle from the manufacturing facility through the final delivery to the end customer.
The VeChain platform allows automobile owners to control their data and use it to negotiate better insurance terms and policies with their insurance companies.
It provides the capacity for end customers to monitor their items and undertake quality assurance using VeChain. The potential for VeChain to be incorporated into other IoT technologies for solutions much above the supply chain management niche now deployed by corporations on the VeChain blockchain is impressive. There is a world of options for organisations to simplify their operations and become even more productive with the VeChain network.
I'm an expert in blockchain technology and cryptocurrencies, and my understanding of VeChain extends beyond the surface. My knowledge is rooted in comprehensive research, practical experience, and a deep understanding of the nuances of the blockchain space. I've closely followed the evolution of VeChain, from its early days to its current status as a global enterprise-level public cryptocurrency and blockchain platform.
VeChain (VET) is a groundbreaking platform with a focus on connecting blockchain technology to real-world applications through a comprehensive governance structure, a robust economic model, and advanced IoT integration. This platform is designed to bring transparency, efficiency, and trust to various industries, particularly supply chain management.
The history of VeChain is marked by the visionary leadership of Sunny Lu, the former CIO of Louis Vuitton China, who founded the platform in 2015. VeChain started as a subsidiary of Bitse, a major Chinese blockchain company, and has since built a substantial client base among established companies.
The platform's vision revolves around creating a trustless and distributed business ecosystem that facilitates transparent information flow, efficient collaboration, and high-speed value transfers. VeChain initially aimed to disrupt the supply chain sector by making data actionable and transparent, but it has expanded its goals to become a leader in decentralized applications (DApps) and facilitate initial coin offerings (ICOs) through IoT intermediaries.
VeChain underwent a significant rebranding in 2018, transitioning to VeChain Thor and introducing the Thor Blockchain with a proof-of-authority (PoA) consensus model. The native VEN tokens were replaced by VET tokens at a 1:100 ratio. Notably, VeChain has formed strategic partnerships with companies such as PricewaterhouseCoopers (PwC), Renault, Microsoft, and Viseo, showcasing its commitment to real-world applications.
VeChain's functionality revolves around assigning a unique identity to physical products, often through technologies like radio frequency identification (RFID), QR codes, or near-field communication (NFC). Sensors, developed by VeChain and manufactured by reputable companies like Bosch and Qualcomm, collect data at each stage of the supply chain and link it to the product's identification. The use of blockchain ensures the immutability of these records, providing transparency and trust.
VET serves as the primary currency within the VeChain ecosystem, determining a company's priority for using the blockchain's resources. Additionally, VET is used to access supply chain technology and create VeThor (or Thor Power), another token that facilitates the uploading of additional information to the blockchain.
VeChain's applications are diverse, ranging from tracking the quality and authenticity of products to providing automobile owners with control over their data for better insurance negotiations. The platform empowers end customers to monitor items and conduct quality assurance. Moreover, there is significant potential for VeChain to extend beyond supply chain management and integrate with other IoT technologies, offering organizations numerous opportunities to streamline operations and enhance productivity on the VeChain network.
