VeChain was recently doing the rounds after it was listed on Zebpay, India’s largest exchange, and its trading began on Pizza Day. Crypto traders around the country were excited when ZebPay officially announced the listing through its Twitter handle.
But what do we know about this project?
What is VeChain?
Operating from Singapore, VeChain is a team aimed at building a trust-free and distributed ecosystem to enable transparent information flow, efficient collaboration, and high-speed value transferring.
The vision of the company involves an ecosystem where:
- Information is relatively transparent and symmetrical.
- Business parties can reduce the potential trust issue among them making business cooperation simpler and more efficient.
- Each user and enterprise earn their position based on their contribution and value.
- The blockchain technology has room for all aspect of business—commercial and economical.
What does VeChain aim at doing?
The project is basically attempting to provide solutions for real-time problems with IoT devices by leveraging blockchain to fight counterfeiting and product-traceability problems across supply chains and logistics.
The VeChain network is going to create a transparent web of information where customers will be provided with better services and accurate information every step of the way.
For instance, in the logistics dimension, the process l work like this:
- A customer will place an order with a warehouse,
- The warehouse management system will upload data onto the blockchain,
- The information relating to the goods pick up and
- Ownership transfer will be uploaded onto the blockchain, and
- The receipt of goods from the client is uploaded onto the blockchain.
The network will provide similar solutions in the agricultural, auto, liquor, luxury goods, and retail industries.
The VeChain Token—VET
The VET token is the blood in the distributed ecosystem that the network aims to create. VET is smart money which can be programmed and executed in smart contracts to continue the value transferring.
The VET will flow through the smart contract which will describe and execute the cooperation between different parties. The main function of the token is to get circulated as much as possible and allow every participant to use it.
Users need to own VET in order to purchase services. In order to do that, users can begin by using Ethereum to purchase VET. The VeChain Foundation will receive a VET from each smart contract development 75% of which will be awarded as a node reward to the node provider and 25% will be used by the network for development and maintenance.
VeChain and IoT
The IoT is one important aspect of the VeChain project. The focus is on the coordination of the IoT development with Blockchain application. The project does this by:
- Development of encrypted chips tag technology
- Identification of IoT sensor and data security
The VeChain network attempts to upgrade the traditional IoT equipment on the chip layer and add a layer of personal identification and asymmetric key algorithm.
Also, read – Top 4 supply chain based cryptos worth investing in
The Bottom Line
VeChain is a platform that has a broad range of use cases which alone makes it a very useful platform. The strong partnerships that it has with companies all over the world also speak for the project. The team is qualified, experienced, and strong. With all these factors counted in, the token appears to be a good investment.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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