After continuous research and developments, blockchain technology is no longer just a mere network used exclusively for cryptocurrencies. Now, it also provides incredible opportunities and solutions for various business industries all over the world.
Out of the thousands of existing crypto projects, there are only a few that focus on using blockchain as a service that can solve real-life problems experienced by many businesses. One of them is VeChain.
Created to improve supply chain traceability and quality assurance, VeChain uses blockchain and physical trackers to ensure a chain management process that complies with businesses’ standards and compliance measures. To learn more about VeChain, read on below:
An overview of VeChain’s blockchain
Headquartered in Singapore, VeChain is founded by Sunny Lu, former CIO of Louis Vuitton in China. He decided to pursue blockchain technology to solve the problem China is most known for: the commercialization of fake products. Thanks to Lu’s exposure to business complexities and passion for the blockchain industry, he was able to come up with VeChain, a feasible solution to enhance supply chain management and business processes.
To achieve its goal, VeChain uses smart chips, Radio Frequency Identification (RFID) tags and sensors that transmit vital information onto the blockchain network, which can be viewed in real-time by authorized stakeholders. These sensors allow all product data to be continuously monitored and any issues to be reported to the appropriate stakeholders.
VeChain also integrates the Internet of Things (IoT) in its services. The IoT is a global network of smart gadgets that include a sensor and the capacity to send data through the internet. Today, these gadgets include anything from televisions to doorbells to smartphones.
Two tokens types of tokens are being used in the VeChain which are the VeChain Token (VET) and the VeThor Token (VTHO). Read on to learn more about these two and to see the function of each one.
Consensus protocol (Proof of Authority)
Proof of Authority is used as a consensus technique on the VeChain blockchain. Here, votes are awarded based on VET holdings and disclosure. VET holders with 1 million tokens in their account without Know Your Customer (KYC) credentials are eligible for 20% of all votes, while VET holders with KYC and the same amount in their accounts are entitled to 30%.
Unlike Bitcoin, which needs all nodes to vote on a transaction, VeChain’s blockchain only requires the vote of 101 master nodes to reach a consensus on transactions. No anonymous nodes are allowed and revealing one’s identity through KYC is required to become a master node.
Another type of master node in VeChain is called the economic master node. It only acts as a power check and does not create blocks or ledger records. A master node receives a certain number of votes depending on the amount of VET it owns. For every 10,000 VET, they receive one vote.
The VeChain cryptocurrency and their importance to the blockchain
The two tokens used in the VeChain blockchain both have different purposes and users. VeChain Token (VET) focuses on the end-user while VeThor Token (VTHO) is for developers.
When data is added to the chain via financial transactions, processing power in the form of VTHO is required. It is used by developers as gas to conduct transactions on the blockchain. This token is not available to the public as it’s only used to cover the costs of smart contract executions.
If you want to invest in the VeChain cryptocurrency, buy VET on an exchange. Just like any other cryptocurrency, VET is used when decentralized applications (dApps) are being used in the blockchain.
As of writing, there are 64 trillion VET in circulation based on CoinMarketCap and it is set up to issue a maximum limit of 86 trillion VET. Its price is currently at $0.1398 with a total market cap of $8,985,936,148.
Business industries where VeChain can be used
VeChain has been used by industries all across the world and it has helped them perform better than ever before. Businesses can use built-in dApps on the VeChain blockchain or they can also create their own if they deem it necessary. This ensures that there is a sustainable and scalable business model on the blockchain’s ecosystem. The following are a few industries that have benefited from using VeChain:
In food production, people have seen a heavily disrupted supply chain that resulted in problems such as food poisoning and expiring perishable products. This increased the risk of consumers buying spoiled or low-quality products.
Since the food sector is involved with people’s health, its operations demand a high level of transparency. VeChain ensures this by using internet of things (IoT) devices. Through this, every stage of food production, from manufacturing to transportation to distribution, is monitored to ensure that the highest level of quality is maintained.
For example, if a food item must be kept at a specified temperature, a device may be installed to track its temperature. If it falls below or rises over the set point and the product becomes spoiled, its distribution can be prevented.
VeChain just came up with a wonderful plan to cut carbon emissions by devising a system that rewards users with credits in exchange for reducing CO2 emissions and energy use. Here, data is collected from automobiles and distributed through smart contracts.
The smart contracts will determine the amount of energy saved per unit using a smart carbon reduction algorithm. Users are then given carbon credits based on these units. The points earned may be used on a variety of VeChain services and partnered businesses.
VeChain has addressed counterfeiting by putting data about a product’s history and life cycle on the blockchain. For example, it has monitored premium wines in partnership with a Chinese mall named Shanghai Waigaoqiao Direct Imported Goods.
Here, consumers can scan a QR code on the product that has been assigned a monitored RFID sensor tag during its transportation and see where it was produced and delivered to. As a result, buyers can assure that the wine is always genuine.
One way VeChain helped the medical industry is by teaming up with I-Dante to create the E-HCert App. Here, the privacy and data integrity of healthcare services is maintained by storing the COVID-19 test results safely within the blockchain.
Is VeChain the future of business?
There is a huge and promising possibility of VeChain creating more advanced solutions for businesses in the coming years due to the flexibility and developments in blockchain as well as IoT devices. Thus, it can be a massive success once the economy fully recognizes and embraces the usage of blockchain technology in businesses.
Moreover, VeChain has what it takes to grow steadily within the next few years as long as they increase their partnerships and open their platform to more business industries.
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