VeChain: The Supply Chain Management Solution
Aug 03, 2018
VeChain is a Singapore-based, enterprise-grade, global public blockchain platform that aims to connect the real world to the uses of blockchain technology. VeChain was created using Ethereum’s ERC20 standard and just recently moved to its own mainnet this past June. This move to its own mainnet led to the rebranding of the VeChain blockchain as VeChain Thor, and also included the generation of its VeThor (VTHO) utility tokens to power the new blockchain, which will be discussed later in this article. Before the mainnet launch, VeChain’s ownership coins were VEN tokens, and after the migration they’ve become VET tokens.
The VeChain Foundation, governed by the Board of Steering Committee, maintains oversight over the VeChain project and its blockchain. The foundation delivers VeChain’s blockchain implementation projects across the world.
As previously mentioned, VeChain provides blockchain solutions to a myriad of corporate products and processes, mainly those that are supply-chain-related. VeChain utilizes Internet-of-Things (IoT), Quick Response (QR) codes, radio frequency identification (RFID), and near-field communication (NFC) to create a “communication” network providing companies real-time management of their assets and processes. By incorporating these technologies with the blockchain, VeChain assures its clients instant and secure access to important information.
VeChain has a diverse range of uses, including:
- Cold-Chain Logistics: Key transport metrics are recorded on proprietary IoT devices. Data is shared and managed throughout every process in a regulated, transparent, reliable, and secure manner. For example, if a driver was transporting seafood from the dock to the market, his company could employ VeChain devices in the truck to constantly monitor temperature, humidity, time/distance traveled, driver habits, etc.
- Automobile: Vehicles using VeChain’s technology are given “digital passports”. These passports contain an immutable record of all the vehicle’s data. Individual parts to the vehicle can be given IDs to keep track of them, repair history is recorded, the driver’s driving behavior can be tracked, along with registration and insurance information. By doing this, every significant event affecting the vehicle can be easily communicated between the driver, auto-repair shop, insurance company, and even the Motor Vehicle Commission/DMV.
- Medical & Healthcare: The manufacturing steps and processes of medical devices can be tracked end-to-end on VeChain’s blockchain to ensure proper handling and regulatory compliance. Patients can also authorize VeChain to share their biometric data with doctors to allow real-time observation.
- Luxury & Fashion: Luxury goods brands can track in real-time the shipment of their products and the sales channels, eliminating the risk of illegal overstock trading. This also allows secondary retailers and consumers to validate the authenticity of the products, which can be done via a mobile app.
VeChain’s blockchain can also assist in the tracking and data management of Liquor via QR Codes or NFC Chips, Agriculture via cloud-based data services for constant monitoring of crops and environmental conditions, and Logistics information as illustrated in the above examples for many different industries.
VeChainThor uses the proof-of-authority (PoA) consensus system, which can be described as a mix between a centralized and decentralized structure. In this layout, VET token holders have the right to vote on network nodes to validate transactions, vote on blockchain modifications, and vote on the VeChain Foundation’s Steering Committee, much like the proof-of-stake consensus algorithm. The committee executes the actions voted on by VET token holders. Those who use the VeChain software are also considered “community members” in that they use their VET tokens to vote as well. This decentralized portion allows the blockchain to remain transparent. The centralized part of the consensus system is the Steering Committee. The centralized aspect contributes to the blockchain’s efficiency.
Nodes have specific requirements to meet before validating blocks. They must have adequate hardware and follow in-depth security procedures, as well as manage the nodes correctly and effectively contribute to the VeChain community.
VeChain Thor utilizes a two-token system. The VeChain (VET) token functions as a store of value, and VeThor (VTHO) for payments on the blockchain. VET transactions generate VTHO, much like the relationship gas (GAS) has with Ethereum (ETH). For example, VTHO tokens are consumed with the creation of smart contracts. The total supply of VTHO is meant to satisfy all forecasted transaction fees and smart contract activities, and nodes on the network maintain its price stability to ensure smart contract prices don’t become too volatile.
- Total Supply: 873,378,637 VET
- Circulating Supply: 554,545,494 VET
- ~13,600,000,000 VTHO generated per year from VET
- DNV GL (risk management and global quality assurance firm)
- Gui’an New Area of China’s government
- VeChain will seek to improve the local government’s development of a smart city in Gui’an by integrating it with blockchain technology.
- Included in a part of a Pricewaterhouse Cooper incubation program. PwC backs VeChain with its China and Singapore segments, giving VeChain access to invaluable advice for growing in South East Asia.
- Groupe Renault
- Kuehne and Nagel
- Others in art, automobile, real estate, and tobacco industries