What is VeChain? Cryptocurrencies explained by Blockchart.io
VeChain is a public blockchain designed for mass enterprise adoption. Luxury brands; such as Louis Vuitton, Rolex and exclusive wineries lose billions of dollars a year due to counterfeits and forgeries. VeChain has taken up the mantle to destroy the 500 billion dollar counterfeit industry thanks to blockchain technology, and its impressive list of partners and business strategy shows that it’s on the right track!
What is VeChain?
VeChain uses blockchain technology, as well as radio-frequency identification to authenticate goods. Products are given a unique RFID label, embedded somewhere in the product, for instance inside a handbag, at the bottom of a wine cork or somewhere on a Rolex watch. The RFID label allows for that specific product to be monitored in order to make sure goods are up to par during all stages of development, be it; packaging, transport or resale, until it reaches the customer. VeChain completely radicalises the way supply chain management works, as the moment a product is scanned, all changes are tracked and logged into the Blockchain. This prevents any sort of tampering and even tackles issues such as transportation which might invalidate or damage the product, for instance, medication or food.
The ramifications are huge, not only does VeChain offer huge advantages for industries such as; pharmaceuticals, automotive, agriculture, fashion and other luxury brands, but it also gives consumers a way to confirm that their purchase meets their expectations and the guidelines laid out by the company. Imagine buying a Louis Vuitton handbag and being able to confirm its genuinity, any bag which does not offer this feature will instantly be marked as fake thus safeguarding the reputation of the brand and assuring the products’ quality!
Why use VeChain?
While the idea behind VeChain might sound fascinating, it is important to see how likely it is to be adopted. VeChain’s partnerships with audit and assurance companies mean that it might soon become adopted by all companies that work with them. Companies, such as Price Waterhouse Coopers and DNV GL (which have already partnered with VeChain), audit thousands of companies. If VeChain is taken on board, it is possible that it becomes mandatory to use VeChain for quality assurance purposes. VeChain has also partnered with other corporate giants such as BMW, BYD and Microsoft.
The biggest news for VeChain, however, is its national partnership with China. Gaining a national partner like China ensure that VeChain is legitimate, regulated, has worldwide potential and applicability, access to funding and a likelihood to succeed. China is pioneering Blockchain technology, it has begun taxing Blockchain and by 2020 it is estimated that most of China’s government services will be running on Blockchain.
VeChain is also the first cryptocurrency to have a Disaster Recovery plan in place. This shows the long-term approach being taken by VeChain. This Recovery plan covers the protocol for a wide variety of issues. From the loss of an account to unauthorised system privilege usage to large-scale disasters that could compromise the entire network. This sort of innovation shows that VeChain is prepared for the future and puts users’ minds at ease.
How VeChain works
Given that the Blockchain is immutable, once an RFID label is scanned then that data is stored permanently within the Blockchain. That information is available to everyone on the blockchain and this ensures the quality, condition, temperature and any other variable deemed important to be monitored. This process guarantees the quality of a product and prevents fraud and manhandling.
Vechain understands that success, growth and longevity require strong governance. As a result, it has adopted a Proof-of-authority consensus mechanism. This system relies on nodes which have a good reputation to verify transactions within the system. Nodes that have exhibited good behaviour, through validating transactions and maintaining the Blockchain, are rewarded. This incentivises nodes as that reputation is earned and tied to the node’s identity.
VeChain uses a two token system, VET (formerly known as VEN) and THOR. VET is the main token used by the blockchain and is used for network services. It is also used to generate THOR. By staking (simply owning) VET it is possible to produce THOR. In order to perform an action on the Blockchain, gas or processing power is needed. This is paid for in THOR, 30% is used to pay the validating nodes and 70% is burned.
How to buy VeChain
When trading VET, there are several platforms which you can use. It is strongly recommended that you find a service which offers the best exchange rates and an established track record to ensure safe and secure transactions. Changelly is a popular cryptocurrency exchange which has been providing the ability to instantly and seamlessly exchange over 100 altcoins at the best market rate or buy them using a bank card for over two million registered users.
VeChain targets some of the biggest industries in the world, be they luxury, health or food and it has been met with great promise. Its focused and determined approach have helped it to curry favour and gain a foothold in China, who is at the forefront of Blockchain development. It is developing all of its RFID labels and sensors in-house to ensure widespread compatibility and accountability. All while providing quality assurance for some of the biggest brands out there!