Established in 2015, VeChain is a Singapore based company that leverages the use of blockchain-as-a-service to provide enterprise solutions to businesses worldwide in a bid to enhance transparency, improve product quality and tracking, in addition to managing supply chains in a more efficient manner.
VeChain is sponsored by the non-profit VeChain Foundation which is headed by Sunny Lu and a strong core team that oversees the development, research, improvement, and governance of the network.
VeChain is based on the Ethereum blockchain with a few minor modifications. Through Asset Digitization, products are assigned unique identities with VeChain Identity Technology (VID). A VID is generated through the SHA256 hashing algorithm, which can then be written onto a Radio Frequency Identification (RFID) tag, a Quick Response (QR) code, or a Near Field Communication (NFC) device. A product can then be tagged with a VID, in addition to being equipped with special sensors, to continuously track its progression across a supply chain. All necessary data regarding source of origin or details about handling will be recorded to confirm authenticity. Any tampering is immediately logged and uploaded onto the blockchain which can then be accessed by all stakeholders, such as manufacturers and consumers. VeChain also supports a digital ownership of assets and products through the use of smart contracts, coupled to both public and private keys.
Hence, whether it’s verifying authentication of luxury goods to prevent counterfeit items, storing a vehicle’s maintenance information, gathering real-time feedback data for farmers to improve yield, tracking liquor bottles to eliminate illicit activities, or securely sharing medical records of patients, VeChain improves efficiency and transparency of logistics, inventory management, and trust between consumer and manufacturer.
Furthermore, VeChain also aids in streamlining business operations with the deployment of Decentralized Applications (DAPPs) in combination with IoT (Internet of Things) devices.
VeChain has chalked a rigorous developmental roadmap which details technological upgrades ever since its inception. As described in the company’s ground plan, the second quarter of 2018 saw the rebranding of the VeChain blockchain to VeChain Thor- Allowing for an easier creation of DAPPs on the blockchain platform.
Formerly called as VEN, the token in VeChain’s network is VET, and functions to transferring value around the system. Another token goes by the name of VeChain Thor Energy (VTHO), and is the cost for carrying payment, as well as, smart contract transactions. Nodes also receive VTHO for maintaining the network.
VeChain utilizes the Proof-of-Authority (PoA) consensus system whereby around a 100+ Authority Masternodes, (run by enterprise users, blockchain development teams, academic research partners, community contributors etc.), act as full nodes to validate and generate blocks. The mechanism brings greater scalability, and has been tested to head about 10,000 transactions per second (tps), although this does lead to more centralization.
VeChain has seen incredible expansion, and the growing number of high-profile partnerships, including PwC, China Unicorn, Microsoft, DNV GL, and the government of Chine, and future upgrades, have only strengthened VeChain’s foothold in the community and gives an edge against competitors. VeChain could very well be on its way to become the ‘Ethereum for businesses.’