What is VeChain (VET)?

VeChain offers blockchain solutions for companies around the globe. With many industrial blockchain applications in place, from supply chain management to anti-counterfeiting and carbon credits, their systems have proven themselves in the real world. The company has deep ties to the Chinese industry and government and strives to strengthen them further.

Photo by NASA on Unsplash

VeChain is a blockchain-based platform with specialized functions to improve processes in supply chain management. It uses a tamper-proof Distributed-Ledger-Technology to determine the authenticity and quality of the products purchased by the users. The information stored can be very versatile. For example, installed spare parts and repairs can be documented, or costs, inventory, production plans and much more can be saved.

VeChain has two separate tokens: VET and VTHO

  • VET (VeChain Token) is used for financial transactions on the VeChainThor blockchain as well as market speculation.
  • VTHO (VeThor Token) is the energy token that is used to carry out transactions on VeChainThor. VET owners can generate VTHO for use on the VeChainThor blockchain.

Global problems in supply chain management

The main problem for companies in information technology is the trust factor. It is difficult for the parties involved in the transmission of sensitive information related to product development to trust each other. In addition, the centralized storage of product information and other data makes them vulnerable to attacks. Centralized storage also harbors the risk of data being stolen or corrupted.

Some VeChain (VET) use cases

  • Food safety

Blockchain-based solutions could lead to a more transparent food economy around the world. VeChain-enabled IoT devices can be used across the supply chain. Environmental and location-related data from these devices can be uploaded, verified, and stored in the VeChainThor blockchain. Solutions like these are already in use for several companies.

  • Health data

Instead of using inefficient and insecure recording systems for laboratory results, this valuable data can be stored on the blockchain, with access only to patients and other authorized parties. A VeChain-based app will be rolled out in 2021 for the first hospitals.

  • Counterfeit security

Counterfeiting in the luxury goods market is a serious problem. By attaching an encrypted chip and then using the chip for logging and tracing logistics authenticity can be proven. This also is being used in the industry.

  • Tracking carbon emissions

This solution enables consumers to drive carbon reductions by tracking carbon-emitting activities and thus participate in a carbon-saving program. When smart devices like cars or appliances show that a consumer is producing less carbon, they can receive credits that they can use for energy services. A Chinese electric car brand is already using this solution.

Conclusion

VeChain is ambitious and already has a strong presence in the Chinese market. With proven projects from large well-known companies already running on the VeChainThor blockchain, the company has shown that it can help companies build useful blockchain applications.

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