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What is VeChain (VET) All About?

Updated: Dec 20, 2019



VeChain Thor is a global blockchain-as-a-service (BaaS) platform with dual tokens. The system was originally built on Ethereum’s smart contract network for service enterprise users. However, it was later shifted to its platform that opened up a plethora of opportunities. VET is VeChain’s proprietary cryptocurrency. The other token is VTHO, which is primarily used for tokenized transactions.


This guide will talk about what VeChain is designed for, the team behind it, how it works, and various uses and applications.


What Is VeChain Designed For?


VeChain was designed to digitize real events, people and products that associated the API with the system’s application layer, connecting the blockchain with real information. The project intends to place a primary focus on supply chain management. It was created to primarily address the issue of counterfeit luxury goods, which costs companies about $461 billion a year (as per a report by CNN.)


The core team wanted to create a completely new business model that helped provide trustworthy services to all participants – both customers and companies. The blockchain was initially conceived as a platform for tracking luxury goods, but later, was revised to expand its sectors of influence and include all business segments.


Who Is the Team Behind VeChain?


VeChain was launched in 2015 in Singapore, making it one of the oldest organizations in the blockchain industry. The core team includes CEO Sunny Lu, COO Kevin Feng, CFO Jay Zhang, and CTO Jianliang Gu. It is a solid team with a deep understanding of the ins and outs of enterprise software solutions that are deployed through Shanghai, China and Southeast Asia.


Zhang has extensive experience in finance and risk management after having worked for PwC China and Deloitte UK. Lu is a former CIO of Louis Vuitton Greater China, with extensive experience working for various Fortune Global 500 companies. He conceived the idea to build a platform that could efficiently track luxury goods and prevent counterfeits from entering into circulation.


How Does VeChain Work?


VeChain works on the principle of the smart contract, which is focused on real industrial operations. The mainnet uses a Proof-of-Authority (PoA) consensus mechanism, which is an adapted version of the Proof-of-Stake algorithm. It helps in limiting the right to verify transactions to a verified group of nodes.


Every product on the VeChain platform is assigned a unique identifier, which is simultaneously stored on the blockchain, placed on the goods with the help of an RFID tag, NFC chip, or QR code. This is done through the proprietary VeChain Identity technology.

Anyone can interact with this unique identifier during the product’s lifecycle. This includes retail partners and distributors who want to determine membership or consumers, looking to learn more about the product’s origin.


VET is used as a mode of payment on the VeChain platform. The coin can be applied towards payments for goods and services. Users can earn the crypto coin when delivering goods as well. Hence, VET essentially fuels the various processes that take place on the platform.


What are Current and Future Applications of VeChain?


VET can be bought in exchange for fiat currency or earned on the VeChain network. The crypto coin can also be traded easily with USDT, BTC, and ETH on OceanEx, Bitrue, Binance, and CoinEx among others.


VeChain provides a wide range of applications, including counterfeit protection, brand protection, and food safety.


Companies can use the platform to generate a strategy for using those products first, which are about to expire. This can protect profits by minimizing losses and wastage. Consumers, on the other hand, can always be sure of a product’s origin and freshness. They can also check whether the products were stored in proper conditions or not.


The network has a growing list of partners including, DNV GL, PriceWaterhouseCoopers (PwC), National Research Consulting Center (NRCC), Direct Imported Goods (D.I.G), and Norway in a Box among many others.


Few recent projects include:

OceanEx

This is a cryptocurrency asset management platform which is created specifically for the VeChain ecosystem


Safe Haven

This provides individuals and enterprises with solutions to better manage their digital assets


Plair

The platform attempts to empower gamers by allowing them to talk about gaming, create tournaments, and stream their gaming sessions


VeChain’s potential should not be underestimated, as it is not just about tracking food or luxury goods. The platform makes all stages of distribution, and even production secure and safer for consumers. Transparency of data enabled by VeChain benefits both manufacturers and end consumers.


The reason the VET is going to be a successful cryptocurrency is that VeChain has a promising future. This is because the core team focuses on following their roadmap strictly. For instance, version 3 and version 4 of VeChain network were launched without delays in 2018. The plans for 2019 are on track as well, including the expansion of the VeChain Thor ecosystem.

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