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A Complete Guide on Vechain Thor (VET) Blockchain
The VeChain Thor (VET) is a public blockchain designed with one aim: to enhance supply chain management and streamline business processes and information flow for complex supply chains through distributed ledger technology (DTL).
How does VeChain work?
VeChain involves assigning a product a unique ID and fitting it with a VeChain smart chip tracker, such as an NFC chip or RFID tracker, allowing the details of any product to be collected, stored, and quickly reviewed. This crypto-space solution will enable businesses and individuals to track items through a supply chain, thus verifying the authenticity of goods and combat counterfeiting. The technology is already used in several industries like healthcare, fashion, etc.
The VeChain uses the Proof of Authority Consensus Model as it overcomes many of the obstacles presented in Proof of Work (PoW), Proof of Stake (PoS), Designated Proof of Stake (DPoS), and practical Byzantine Fault Tolerance (PBFT). PoA is the ideal solution for enterprises relying on a timely and secure consensus. It makes a platform with low computation power requirements, no communication requirement between nodes to reach an agreement, and system consensus. It also provides the governance needs of the VeChainThor consensus protocol and enables the ability to prevent anonymous block producers.
The VeChain platform consists of two tokens:
- VeChain Token (VET) – used as a unit of exchange. The VeChain tokens are required to perform all transactions and services on the VeChain platform.
- VeChainThor Energy (VTHO) – used as energy or gas to power transactions on Vechain and is equal to the cost of conducting operations on its blockchain.
The platform claims to provide a 360-degree view of necessary information linked to a product and its business processes – like storage, transportation, and supply – to authorized stakeholders and create greater market transparency.
How does Vechain Track Products?
VeChain uses smart chips or Radio Frequency Identification (RFID) tags to accomplish this goal. These devices broadcast vital information onto the blockchain network that authorized stakeholders can access in real time. In addition, sensors continually monitor all parameters related to the product, and problems can be communicated back to the relevant stakeholders if any.
To simplify that, let’s consider the example of a bottle of wine. VeChain’s tracking and authentication technology can collect and store data on the blockchain about the wine at every stage of the production process.
Each bottle has a unique product ID fitted with a QR code or NFC chip tracking mechanism. Once the bottle moves through the supply chain, transportation companies can update logistic details on the ledger. Manufacturers can track their products from the start of their cycle until they reach the consumer.
Brief History of VeChain
VeChain (VEN) was founded in 2015 by CEO Sunny Lu and is among the world’s first cryptocurrency technology companies. It is among the few blockchains with a substantial customer base among established companies. The VEN token initially functioned on the Ethereum blockchain as an ERC 20 token. At the end of June 2018, the VEN blockchain changed to VeChain Thor, and its ticker symbol also changed from VEN to VET.
VeChain’s CEO, Sunny Lu, has a solid IT and Information Security background across luxury retail brands. He was previously the CIO and COO of Louis Vuitton China, so their primary focus, in the beginning, was the luxury goods industry. VET has successfully implemented blockchain in other industries like wine, agriculture, automobile, and liquor.
VET’s blockchain platform goals are outlined in its white paper. Its initial target is to disrupt the supply chain industry by making data actionable and transparent. VeChain’s future blockchain plans are to have dApps and initial coin offerings (ICOs) on VeChain and the Internet of Things (IoT) platform.
VeChain Use Cases
Below are five key Vechain partnerships that have helped the project grow.
- PricewaterhouseCoopers (PwC)
VeChain became part of Pwc’s incubation program in May 2017. This partnership aims to provide VeChain access to Hong Kong and Southeast Asia. In addition, with this partnership, PwC could optimize its accounting techniques by implementing VeChain’s blockchain technology.
- DNV GL – Certification
DNV GL is the world’s largest classification society and also a global provider of assurance services. The partnership with VeChain aims to help DNV GL increase its supply chains’ efficiency and make the entire journey of a product from the factory to the consumer traceable and transparent.
- Shanghai Waigaoqiao (DIG)
China is among the biggest importers of wine globally, and 30% of those imports come through Direct Imported Goods (DIG), and VeChain provides a tracing platform for DIG. Each wine bottle has a label that customers can scan to check if the product is genuine. The information stored on the blockchain can’t be faked because the blockchain is immutable.
- Gaijin (smart city project)
It is a significant partnership with the Chinese government on a national level. China plans to develop the midwest part of the country, so Gui’an is a strategic zone. VeChain’s Gui’an area goals are to certify government information sharing and provide traceable solutions for the wine industry and energy trading. In addition, the project aims to prove to the government that blockchain technology can benefit the country.
Since 2015, VeChain has had a growing list of high-profile partners and is on its way to becoming a very sought-after service for processing and product protocol. Eventually, VeChain Foundation plans to satisfy the demands of big corporations.
However, VeChain partners need a reliable way of preparing their investments, and significant price movements don’t relate to that. Given VeChain’s significant success in previous projects, we expect it to improve. VeChain may be worth looking into if you want to diversify your crypto portfolio.