What is Vechain? Blockchain for Enterprise

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What is Vechain? VeChain (or VechainThor) is a next generation smart contract blockchain platform focused on enterprise adoption, IoT and mass adoption via Toolchain. The blockchain supports the creation of smart-contracts – self executing contacts that have a guaranteed outcome without third party trust. This allows for the creation of decentralized applications (“Dapps”) that can solve enterprise problems such as:

  • Anti-counterfeit for Luxury Brands – through the use of smartchips, Vechain tracks each individual item and prevents duplication. Vechain Toolchain allows anyone to create anti-counterfeit tags.
  • Cold-chain Logistics – ensure that food doesn’t spoil during transportation and storage by using smart IoT (internet of things) sensors that automatically report crucial information to the blockchain.
  • Automobile – keep a tamper proof record of vehicle data including repair history, insurance, registration and driver habits.
  • Carbon Credits – Quantitatively track carbon contributions of a particular company to reducing carbon emissions.

Using blockchain technology, VeChain makes it simple and secure for product manufacturers to collect, manage and share important product data with vendors and consumers throughout the life-cycle of a product.

Vechain network uses a two token system – with the main token being Vechain (VET). A second currency “gas” currency, VTHO, was introduced to improve network economics. VTHO is required to send transactions or perform actions on the network. Regular users of the network don’t have to worry about separately buying VTHO as it is automatically generated (in proportion to VET held).

Name:
Vechain
Symbol:
VET
Purpose:
Store of Value, Value exchange
Staking:
Required for transactions:
Total Supply:
86,712,634,466
Name:
VeThor
Symbol:
VTHO
Purpose:
Gas, Consumable
Staking:
Required for transactions:
Total Supply:
No Max
  • VechainThor (VET) serve as a reserve for economic staking and value transfer on platform. VET can be “staked” in various economic nodes and generate VTHO which powers transactions on the network.
  • VeThor Token (VTHO) is the “gas” required to perform transactions and interact with smart contracts. Each time a transaction is made, VTHO is consumed and destroyed.

Key Features of Vechain

  • Public blockchain Anyone can read, write and deploy decentralized applications and smart contracts onto the VeChainThor blockchain.
  • In-house IOT and supply chain management technology Proven blockchain implementation experiences in industries such as luxury goods, liquor, and agriculture.
  • Native Fee Delegation The blockchain supports the implementation of native fee delegation, which means dApp users do not need to hold VET or VTHO to write transactions if associated gas costs are specified by the developers to be sponsored.

VeChain Ecosystem

To achieve its ambitious vision, VeChain has developed a powerful blockchain-enabled enterprise software platform. The Platform enables manufacturers to assign products with unique identities, which then allow manufacturers, supply chain partners, and even consumers to interact with the product through the platform. It uses blockchain technology to ensure the security of the data collected, allocating private keys to all participants within the supply chain.

A product is assigned a unique ID, which is stored simultaneously in the blockchain, and placed on the product with an NFC chip, RFID tag or QR code. At any point during the product’s life, the chip, tag or code can be interacted with, whether it’s a distribution or retail partner ascertaining batch membership, or a consumer learning more about a product’s provenance. The company envisages a broad range of applications, including brand protection, anti-counterfeit, and food safety.

VeChain has existed since 2015 and migrated their previous private and consortium blockchain to their public VeChainThor blockchain in 2018. This move opens up the advanced features found on the blockchain to any developer or 3rd party to develop and write applications on the the platform. There have been several companies that chose to build their business on top of VeChainThor, including Plair and 8Hours Foundation, as well as several independent community developer

Vechain is secured by Proof of Authority

The heart of Vechain is 101 Authority nodes that process transactions and govern the network via a voting mechanism. Authority nodes are owned by large enterprises and trusted individuals to ensure decentralized trust.

Using and Storing Vechain

Vechain can be stored safely on the VechainThor Wallet which is available on smartphones (iOS and Android). The mobile wallet securely encrypts provide keys to provide maximum security for Vechain holders.

Vechain Token Economics

Vechain uses a dual-token economic model. The primary token, VET is used to represent value on the network, with various mechanisms designed stabilize the price of VET over time. VET holders will also automatically generate the utility token, VTHO. The utility token, VTHO, is used to pay for transaction costs. This system is designed to help developers on the network. Developers holding enough VET will be able to use the network for free, as the VTHO generated will be enough to pay for transactions. If a developer is developing a transaction intensive app, they can also look to use the multi-party payment protocol.

When a transaction is executed, 70% of VTHO is permanently destroyed (“burned”) and 30% is given as a block reward to Authority Masternodes.

History of Vechain

The project started in 2015 with the establishment of their company in Shanghai. Founded by CEO Sunny Lu (ex-CIO of Louis Vuitton China), the company has been developing enterprise focused solutions based on its private blockchain. As the trend towards better decentralization occurred in the blockchain industry, VeChain migrated to a consortium blockchain before finally establishing the VeChain Foundation and started their final migration to a PoA-based public blockchain platform.

The Foundation’s vision is to create greater market transparency and provide consumers with access to more detailed information about the products they buy, sell and interact with. By having a full 360-degree view of the supply chain, with all components securely recorded and stored in a tamper-proof distributed ledger, retailers and manufacturers can be certain of the quality and authenticity of their products, guaranteeing consumers that what they are buying is really what they think it is.

Now, VeChain boasts partnerships and live use cases with many notable partners, including DNV GL, PwC, Deloitte, Walmart China, BMW, BYD Auto, H&M, LVMH, ENN, AWS, PICC, ASI Group, etc.

Key VeChain Partnerships

DNVGL

DNVGL was founded in 1864 and has 300 offices worldwide. They provide quality assurance services to companies in the maritime, oil and gas, and power and renewables industries.

DNVGL issues Management System Certificates at the end of their inspection and certification process. This evidences that the company’s processes and products meet international standards.

DNV GL Luca Crisciotti presenting benefits of Digital Assurance

During the signing of their strategic partnership with VeChain on January 24, 2018, DNV GL, announced that they will place blockchain at the core of their services. DNV GL and Vechain believes that the future of assurance lies in blockchain technology. DNV GL serves at the VeChain Foundation Steering Committee, which reflects their commitment to the development of the blockchain.

At VeChain Summit 2019, DNVGL announced it has completely migrated its private blockchain to the VechainThor public blockchain. The initial benefit was to avoid falsified certifications. DNVGL’s rationale for migrating to the VeChainThor blockchain was to give to each customer a digital identity through a digital NFT wallet. As a result, each customer can access and interact with the DNVGL ecosystem.

The Company has also acquired a minority stake in VeChain. Since the partnership announcement, DNV GL has jointly developed several products including the Low Carbon Ecosystem, MyStory, a traceability and marketing solutions, and has reaffirmed its commitment to the ecosystem by developing on the blockchain for its clients, starting with providing every single client in DNV GL a digital NFT wallet, amounting to more than 900,000 wallets. In comparison, Ethereum has only 400,000 wallets.

BMW

Cihan Albay, Leader at IT Tech Office Singapore, BMW Group gives a presentation on VerifyCar

In March 2018, BMW confirmed it VeChain is participating in BMW’s Startup Garage Programme. This meant that BMW has already committed to becoming VeChain’s customer whilst VeChain’s product is being prepared for the market.

At this years VeChain Summit, it was confirmed that VeChain and BMW will jointly develop a Dapp called VerifyCar for BMW cars. VerifyCar will record vehicle information onto the VeChainThor blockchain. Examples of such information include a vehicle’s mileage, insurance and service records.

Cihan Albay, Leader at IT Tech Office Singapore, BMW Group gives a presentation on VerifyCar

PriceWaterHouseCoopers (PwC)

PwC is known as part of the “Big Four” auditors. They are a network of firms in over 150 countries and provide services to 420 of the Fortune 500 companies. VeChain has partnered with PwC since May 2017 to jointly develop and promote the adoption of blockchain technology. The auditing giant has since stayed relatively quiet since the announcement.

PwC has 3 major service lines:

  • Assurance providing financial audits;
  • Advisory on actuarial and insurance management solutions and human resource services; and
  • Tax planning and consultancy services.

Founder Sunny Lu stated that PwC will be announcing a massive product built on the VeChainThor blockchain with a globally known company, which turned out to be Walmart China. In a joint press conference with PwC and Walmart it was announced that Walmart China is building their new traceability platform on top of VeChain’s blockchain platform, and has since gone live in several supermarkets in China.

CREAM incubator

CREAM is a strategic blockchain incubation and advisory company. They are a strategic partner and advisor for the VeChain Foundation, providing incubation and advisory services to VeChain.

As a strategic partner, CREAM has directly assisted VeChain and is involved in several high profile partnerships, such as the partnership with the Cyprus Government, in the group pledged support to the country of Cyprus in blockchain development. 

CREAM has also pledged support for the VeChain ecosystem by integrating VeChain blockchain platform for all of their incubation projects, bringing in 3rd party companies to contribute and develop on the VeChain blockchain ecosystem.

For a complete list of VeChain’s partnerships and details, check out VeChain Insider’s summary here and Click here to learn about other announcements at the VeChain Summit.

Resources:

Website https://www.vechain.com

Foundation: https://www.vechain.org

Medium (update and key articles): https://medium.com/@vechainofficial

Development Plan https://cdn.vechain.com/vechain_ico_ideas_of_development_en.pdf

Telegram https://t.me/vechain_official_english

Vechain Mainnet Launch Guide http://www.asiacryptotoday.com/vechain-mainnet-launch

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