One of the key factors to determine the success of an organization in the marketplace is its supply chain management. However, the traditional supply chain infrastructure is opaque and restricts the user from tracking the movement of goods from one location to another. This lack of transparency leads to delays, errors, and fraud. This is where Blockchain comes in.
The fundamental traits of Blockchain, including immutability, transparency, automation, and decentralization have proven to be capable of improving supply chain management. However, building Blockchain supply chain solutions can be exhausting as well as expensive for enterprises. This is why several companies are increasingly showing interest in VeChain- a Blockchain platform developed to improve the flow of supply chain and encourage a widespread use of Blockchain technology.
In this blog post, we will discuss in-depth what VeChain is, the unique characteristics of VeChain, how VeChain (VET) works, and find answers to other related questions.
What is VeChain?
Co-founded in 2015 by Sunny Lu, the former CIO of Louis Vuitton China, and Jay Zhang, VeChain is a Blockchain platform designed for seamless supply chain management and business processes. The supply chain data in existing infrastructure are compartmentalized in silos among numerous stakeholders, which affect the information flow. VeChain builds a trust-free and distributed ecosystem for the smooth and transparent flow of information and high-speed value transfers. The goal of Blockchain supply chain solutions is to simplify the complex supply chain processes. This transformative Blockchain-based platform claims to offer a 360-degree view of information related to products and business processes, creating greater market transparency.
Unique Features of VeChain
The following are the key traits of the VeChain that stand out this Blockchain supply chain software from others in the market.
- Dual-token Economy
The VeChain ecosystem consists of two tokens, including VeChain Token (VET) and VeChainThor Energy (VTHO). The VET is used as a medium of exchange just like other Blockchain use their native currency, whereas the VTHO token facilitates the transactions. With the VTHO token, transaction fees are settled, and the platform’s gas costs are covered. Both of these tokens play a crucial role in empowering the VeChain infrastructure.
- TurnKey Software
VeChains provides a comprehensive range of turnkey software and hardware solutions that enable enterprises to launch their project at a minimal cost. Proficient Blockchain and smart contract developers, security analysts use the solution equipped with all necessary tools and services for the successful development and deployment of Blockchain solutions at the lowest cost.
- Fee Delegation Protocol
VeChain is also popular for its unique fee delegation protocol feature. This Blockchain supply chain software uses smart contracts and the gas accounts of the user in order to manage the gas usage required to handle the network. This feature enables a company to use the services and tools on Vechain and simply pay for the data they use.
How Does VeChain Work?
VeChain uses the PoA (Proof of Authority) consensus model for faster and more secure transactions. Such Blockchain applications in the supply chain leverage 101 Authority Masternode operators that need to verify their identity by qualifying KYC steps. These operators are responsible for executing the smart contract operations and data validation.
The Authority Masternode operations abide by the governance policy of the VeChain, whereas PoA enables the platform to address common Blockchain issues, including energy wastage and inefficient upgrades. The VeChain ecosystem is considered energy-efficient as it requires low computation power to achieve consensus integrity & network security. All the activities on the Authority Masternode network are controlled by integrated smart contracts.
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Use Cases and Applications of VeChain
Several practical applications of VeChain across industries show how viable Blockchain supply chain solutions like VeChain are to address the key challenges of supply chain management.
- Automotive
The use of VeChain can be observed in the automotive industry. From tracking the ownership and maintenance history of vehicles, VeChain enables buyers to easily verify the authenticity of vehicles and determine the warranty claims.
Real-world example: BMW
Vechain collaborated with a renowned German car manufacturer BMW in 2020 for a car security platform, VerifyCar. This application was built on the Vechain Blockchain that allows users to transfer important data like repair details seamlessly.
- Healthcare
VeChain stores the medical data securely and provides the data access to only authorized users within the network. It is one of the best Blockchain supply chain solutions that helps track the source of medical products developed that prevent counterfeiting problems and improve the patient’s safety.
Real-world example: E-Hcert App
VeChain partnered with iDante to bring a solution, E-Hcert App. It is one of its kind medical programmed solutions in the world, which is built with Blockchain and is a GDPR docile. During the pandemic COVID-19, the E-Hcert App helped people provide a vaccine certificate and test report in a QR code.
- Fashion
VeChain is one of the revolutionary Blockchain supply chain solutions that empowers fashion brands or startups by providing consumers with detailed information about the origin and authenticity of their products. It enhances transparency and traceability in the fashion industry.
Real-world example: Sarah Regensburger
U.K.-based British fashion brand, Sarah Regensburger leverages the Singapore-based distributed ledger technology (DLT) project VeChain to streamline the supply chain operations and enhance transparency and traceability throughout the process.
- Food and Beverages
VeChain encourages Blockchain adoption in the food industry. It provides an ease to tracking the provenance of food products that ensures the products are safe and produced in a sustainable way. It is one of the leading Blockchain supply chain solutions that enhances the traceability of food products and helps prevent foodborne illnesses.
Real-world example: Walmart China
The Walmart China Blockchain Traceability Platform is built on VeChainThor Blockchain. This platform enables customers to scan the desired product and acquire detailed information about it, including the source of the product, product inspection report, logistic process, etc. This Blockchain supply chain enhances the company’s inventory management capability and streamlines its supply chain.
The Future of VeChain
VeChain is one of the innovative Blockchain supply chain solutions that helps logistics, supply chain management, and other industries to streamline their operations. However, when it comes to investing in this solution, one should always walk through its pros and cons before making a move. Coming to the future of Vechain, it is uncertain. No one can predict if Vechain will be another new Ethereum in the crypto industry. With every new update, the solution becomes more competitive. It will be exciting to see how VeChain will stand in the market and compete with its rivals.
Conclusion
Vechain has emerged as a game-changer in the crypto world that has accomplished various goals since 2016, including the VET tokens, the main net launch, and providing several solutions for various industries such as food and beverages, supply chain, healthcare, and more. The constant upgrades in the solution help it address several issues of enterprise-grade Blockchains. Antier, a leading Blockchain development company, understands the power of VeChain and hence, can build impactful Blockchain supply chain solutions for enterprises. We are a leading Blockchain supply chain development services provider in the crypto world with which you can connect in no time and discuss your project requirements.
