VeChain, which uses the cryptocurrency VEN, is a blockchain ecosystem that aims to disrupt multiple industries by providing better product traceability. Find out how it works today in our review.
What Is VeChain?
VeChain, found online at VeChain.com, is a blockchain platform catered towards a diverse range of products and industries. Some of the targeted industries mentioned on the official website include liquor, luxury goods, auto, retail agriculture, and logistics. VeChain aims to introduce blockchain technology – like blockchain-based product tracking information – to all of these industries.
The goal is to create a trust-free and distributed business ecosystem that is self-circulating and scalable.
VeChain’s digital token, called VEN, was launched in August 2017 at a price of around $0.20 per token. Today, with a circulating supply of around 300 million VEN tokens, VEN is priced at around $4.40 USD, giving it a total market cap of $1.2 billion. That makes VEN one of the top 40 largest cryptocurrencies in the world by market cap, as of January 2018.
In December 2017, VeChain introduced a new path forward for its ecosystem. The company revealed it was creating VET tokens, which would be transferable from VEN tokens in the near future.
Let’s take a closer look at how VeChain works – and how it could disrupt various global supply and logistics industries.
How VeChain Business-Grade Blockchain Cryptocurrency Works
VeChain has implemented blockchain solutions into a number of different industries. The best way to understand how VeChain works is to examine how the company implemented blockchain into different industries:
VeChain uses blockchain to enhance the flow of information between logistics companies. The primary goal is to break down siloed information structures used by different manufacturers, logistics companies, distributors, and storage companies – all while maintaining the privacy of data owned by each company. The goal is to make the logistics process more efficient while making room for innovative business models.
VeChain embedded customized NFC chips into its leather luxury goods, creating tamper-proof anti-counterfeiting solutions. Using these chips, the company can trace the product end-to-end, leading to better lifecycle management through the VeChain blockchain. Meanwhile, on the customer side of things, customers can discover the unique “story” behind their product simply by scanning the embedded chip with the VeChain mobile application or an NFC reader.
Municipal government agencies participate in the blockchain network as nodes. Blockchain enables decentralization and the immutability of data ledgers, allowing transparent information exchange and collaboration to take place. this can significantly enhance the security and efficiency of internet-based government services. VeChain aims to introduce blockchain to multiple governmental organizations.
VeChain’s blockchain can be used to optimize agriculture industry practices, enabling precise and accurate data collection to farms. Farms can also use the VeChain blockchain to monitor surroundings and ensure the quantity and quality of their crops in a secured environment, all while minimizing the negative impact on the environment.
Food And Drugs:
VeChain has created unique IDs for foods and drugs, which means every unit is digitized from its origin and follows the product until it reaches the consumer. Consumers and producers can monitor and track foods and drugs throughout their lifecycle. They can learn when the item was produced, shipped across borders into a retail store, and purchased, for example.
All of these platforms are available to be tried for free on VeChain.com. VeChain lets you see how they work in action.
VeChain’s systems are already in place worldwide. As of January 2018, VeChain has deployed 111 nodes across the world, including nodes in Germany, the UK, China, South Korea, and Japan.
In November 2017, the VeChain team met in Singapore to change future development of the project. The VeChain blockchain will be upgraded to the VeChain Thor Blockchain. When Thor is released, the company will covert existing VEN tokens into VeChain Thor (VET) tokens.
The new VeChain Thor will use proof of authority as the consensus mechanism. It will use nodes and masternodes, along with two major types of nodes on the VeChain Thor blockchain, including one “Authority Masternode” and three “Economic Masternodes/Nodes”. There’s a total of four distinctive nodes.
As with other PoA blockchains, those who hold a certain number of tokens will be eligible to host masternodes. VeChain’s nodes are separated into different tiers – like “Mjolnir” and “Thunder” based on the number of tokens you hold.
Who’s Behind VeChain?
VeChain’s development is led by the VeChain Foundation, which also goes by the name Shanghai Weilian Information Technology Co. Ltd. or Shanghai VeChain. The company is headquartered in Shanghai, but also maintains locations in Singapore, France, and Hong Kong.
VeChain was founded by Sunny Lu in 2015. The company has 70 employees, including more than 50 professional blockchain application developers. In addition to Lu, other key members of the team include Jay Zhang (CFO and Co-Founder of VeChain).
VeChain VEN Conclusion
VeChain aims to bring blockchain technology to the world of supply and logistics. VeChain has created a system that can track numerous types of products worldwide, from their raw stages of production to the final store shelves. The system has already improved product traceability in luxury goods, wines, agriculture, automobiles, transportation, logistics, audit services, and more.
VeChain and its VEN currency have been in the news since late December and early January as the token as experienced a price surge. This has drawn renewed attention to the project. Meanwhile, the VeChain main net isn’t expected to publicly launch until June 2018.
To stay up to date on VeChain and its development, visit online today at VeChain.com.