Vechain revolution is here. Ever wondered if the pair of sneakers you own is an original Nike? How about the meat on the table? Did you ever wonder if it really came from that farm in Switzerland, as they claimed at the supermarket? With the use of blockchain technology. VeChain has managed to solve this problem and is now garnering mainstream usage across industries.
The start of the VeChain revolution started in 2015
VeChain was founded in 2015 by Sunny Lu (former CIO of Louis Vuitton, China). He used his knowledge of the luxury goods industry and combined it with blockchain technology. This created an IoT (Internet of Things) application for the supply chain management. The counterfeit market is a $30 billion industry. To curb fraud, keep records and increase transparency, VeChain helps to authenticate the genuineness of the products.
As part of its collaboration with the Chinese government, Vechain will be storing bank account details and business certificates for a major portion of its administration. Other partnerships with companies like PricewaterhouseCoopers (PwC) have helped it reach mainstream adoption and popularity.
Before creating its own platform, VeChain (known as VEN at that time) used the Ethereum (ETH) platform. But creating its own has moved it from just the supply chain into the world of Decentralized apps (Dapps), where other coins can also launch from.
The company rebranded itself and then came the token, VeChain Thor (VET), which is also the payment mode in VeChain’s system. The more VET a person holds, the higher their priority when using the blockchain resources. VET can also be used to generate the second kind of token, known as VeThor or Thor Power (VTHO), to access the supply chain technology.
How does the VeChain tracking system work?
A simple unique identifier is placed with the product when it begins its journey. At each stage, the sensor is updated with information of where it’s been, what’s been done, and where it’s supposed to be next.
Apart from helping the production companies to track their process accurately, even the end consumer can scan and authenticate the product’s journey. A blockchain technology with a unique Proof of Authority (PoA) system ensures that no data can be manipulated.
In 2016, VeChain applied this technology for Renault, in order to track vehicle history, like maintenance, mileage, and all service records. This technology has real-world usage in several other industries, and VeChain has hinted at more major collaborations in the pipeline.
Most recently, VeChain and the Chinese government met to discuss the future case scenarios for boosting China’s blockchain technology, including a 5-year plan. Even NASDAQ has openly acknowledged VeChain’s capabilities to bounce back from the recent crypto market slump.
At the time of writing this, VET was trading around the $0.1394 area. Its all-time high, being around $0.26, before a series of unfortunate events led to an overall market slump. This one seems destined for the moon, as they say. In a bullish market, the $1 per VET might become a reality in 2021. If all continues to go well, there’s no telling where it might be by 2025.
