In this article, What is VeChain? We will try to answer the question and provide detailed information about the project.
In this article, What is VeChain? We will try to answer the question and provide detailed information about the project.
What is VeChain?
VeChain is a Blockchain as a Service company with a mission to create “an insecure and distributed business ecosystem to deliver transparent information flow, efficient collaboration, and high speed value transfer”.
The project has been running for more than two years and already has customers using a working product. Many industries, including luxury goods, agriculture, logistics, food / medicine, and governments, are already using VeChain blockchain technology.
VeChain does a lot. Using technology, you can track products along a supply chain, guarantee the originality and quality of products, as well as maintain quality control of food products.
How Does VeChain Work?
VeChain started out primarily as a blockchain supply chain company, but has since evolved into a full-fledged DApp platform.
VeChain uses a mix of blockchain technology and in-house built smart chips to track items throughout their lifecycle. It can be implemented in different IoT items such as smart chip, NFC chips, RFID trackers or QR codes.
While this may not seem like the most interesting technology, it plays an important role in ensuring product quality across industries. Let’s look at the luxury goods industry as just one example.
The luxury industry is handled with counterfeit products – worth over $ 450 billion. With an item like the Louis Vuitton bag that changes hands several times during production and distribution, you need to be confident that it will convey something authentic to the person in front of you.
Traditional Supply Chain
VeChain, like other blockchain companies, eliminates the need for this trust. At every step of the process, you can scan the smart chip on each item to ensure you get what it should be. Since the blockchain is an immutable ledger, you can trust that you’re getting the right information.
It’s not crazy to assume that this technology will soon be in the hands of consumers, although it still isn’t available. Soon, you will be able to check the authenticity of these sketchy market stand sunglasses with a quick scan from your phone.
Supply Chain Logistics
Beyond counterfeit protection, VeChain also improves logistics systems through simplified product tracking. Logistics is complex and often involves several separate systems that vary between businesses. Therefore, keeping track of products in the supply chain can be a huge pain. This is especially true when data needs to be entered manually or when switching between processes.
Using VeChain, you scan the item’s smart chip to get all relevant data. This ensures businesses always up-to-date information and an accurate account of each item.
VeChain, which integrates with IoT devices, also aids in quality control. This is particularly useful in the food and agricultural industry where a few degrees of temperature change can ruin an entire product line.
VeChain Thor
In February 2018, VeChain was rebranded as VeChain Thor. The rebrand took the company beyond the supply chain to more general enterprise dapp solutions similar to Ethereum. The new platform uses two different tokens: VeChain Tokens (VET) and VeThor Tokens (VTHO).
What is VeChain Token (VET)?
Prior to the implementation of the VeChain mainnet, the only tokens in the network were VEN, an ERC20 replacement. When the team moved from Ethereum to their own blockchain, they exchanged VEN tokens for VET at a 1: 100 exchange.
VET is used by companies as a smart payment currency to run business activities on the blockchain. Businesses with more VETs are given higher priority and more rights over the blockchain.
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