The company has been around for over two years and already has customers using a working product — a rarity these days. Several industries including luxury goods, agriculture, logistics, food/drug, and governments are already using VeChain blockchain technology.
VeChain does a lot. Using the technology, you can track items through a supply chain, ensure the authenticity and quality of goods, as well as maintain the quality control of food products.
How Does VeChain work?
VeChain began primarily as a supply chain company but has recently announced plans to evolve into a DApp platform as well (more on this later).
VeChain uses a mix of blockchain technology and their in-house built chip to track items throughout their lifecycle. The smart chip can be implemented in different a variety of items such as wine, luxury bags, food, and many more through a technology called RFID (Radio Frequency Identification).
This is important because it allows consumers to track where the actual product is coming from. You will know if the product is legit, if the product came from the right destination and if certain foods actually come from where they claim they do.
The luxury goods industry is wrought with counterfeit items — over $450 billion worth. With an item like a Louis Vuitton purse changing hands several times during production and distribution, you need to trust that the person before you is passing along something authentic.
VeChain, like other blockchain companies, removes the need for this trust. At every step of the process, you can scan the smart chip on each item to guarantee you’re receiving what you should be. Because the blockchain is an immutable ledger, you can trust that you’re receiving accurate information.
Although still missing, it’s not crazy to assume that this technology will be in the hands of consumers shortly. Soon, you’ll be able to check the authenticity of those sketchy flea market stand sunglasses with a quick scan from your phone.
Using VeChain, you just scan the item’s smart chip to get all of its associated data. This provides businesses with information that’s always current and an accurate account of each item.
Integrating with IoT devices, VeChain also helps with quality control. This is especially useful in the food and agriculture industry where something like a temperature change of a few degrees could ruin an entire product batch.
They build everything in-house and their iOS app have been out in the app store for quick some time. You can use the app to track logistics and more.
VeChain relies on nodes to maintain the blockchain ecosystem. Nodes receive something called THOR as a reward for maintaining the network. There are four types of nodes that are differentiated by their maturity date and the amount of VET that they hold:
- Strength Nodes — 10 day maturity period (minimum 10,000 VET)
- Thunder Nodes — 20 day maturity period (minimum 50,000 VET)
- Mjolnir Masternodes — 30 day maturity period (minimum 150,000 VET)
- Thrudheim Masternodes — 12/21/17 maturity start date (minimum 250,000 VET)
The three types of economic nodes (Strength, Thunder, and Mjolnir) receive rewards from the VeChain Foundation THOR pool in addition to the normal reward for holding VET.
The 101 authority nodes (Thrudheim) receive the same rewards as economic nodes plus 30% of all THOR consumed by blockchain transactions. The remaining 70% of THOR will be burned.
Don’t be intimidated by the amount of VET needed to become a node. You still will receive the daily THOR reward no matter the amount you hold.
Sunny Lu leads the team as CEO. For the majority of Lu’s career, he’s led IT and Information System projects for several luxury brands. Most impressively, he was the Chief Information Officer (CIO) for Louis Vuitton China where he discovered the problem behind the validation of luxury goods.
They’re also backed and advised by some talented individuals.
Probably one of the most convincing aspects of VeChain is their partnership.
The team has been busy forming partnerships left and right with the two most notable being PwC and DNV GL. VeChain is part of the PwC’s portfolio companies giving them access to the firm’s massive worldwide network of clients as well as internal audit to ensure that all their products meet the correct compliance and more.
We don’t know much about DNV GL due to their NDA, but they will be using VeChain for their internal tracking for oil, food and more.
Perhaps most importantly, the Chinese government has chosen VeChain to be the blockchain technology partner of the government of Gui’an. With a government that’s notoriously tough on regulations. It’s a great way for them to enter the Chinese market with their technology.
VeChain began trading at the end of August 2017 at around $0.25. Since then, the price continued on an upward trend.
Beginning in the middle of December 2017, the price has been climbing rapidly and recently hit an all-time high of $5.68.
The price continues to rise as we see more promising news being released by the company.
If you’re looking to buy VeChain, their ticker is $VEN and can be found on most popular exchanges such as Binanace. You can also see a complete list of exchanges where VEN is available on CoinMarketCap.
VeChain is one of the most established blockchain companies in the industry. It is a unique coin that is solving a big problem in this world in multiple ways.
Having partnerships with giants like PwC and the Chinese government, they should have no problem growing their clients in the B2B space. Without getting too technical, it is a company that takes all of it’s money and reinvests it back into internal R&D.
If VeChain continues at their current pace, it wouldn’t be a surprise to see VET as one of the top performers of 2018.
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