VeChain is the 19th largest cryptocurrency by market cap at the moment but how did it get there? What does the project use blockchain for? And will it change the way we live and work?
Blockchain and Supply Chain
When we first think of blockchain we think of cryptocurrency. A sort of digital money that will get us away from that pesky fiat. But is currency being transmitted over the blockchain? Of course not – but what is?
Data is the life’s blood of any information system, which blockchain happens to be. Whenever two parties in a system interact a data creating event will occur. For example, when two parties transfer bitcoin they create a transaction that is included in blocks miners create.
Vechain is using this concept to build a next generation supply chain tool. By creating an environment throughout the supply chain that is filled with blockchain nodes they hope to become masters of supply chain data. What does that mean though? How will they create nodes throughout a supply chain?
They can do this by making each item manufactured and the machines that support it a node in the network. When a shirt being made passes from the factory to the warehouse that shirt will interact with its environment and update the blockchain network accordingly. The network could potentially be a database of the most current status of all items in the supply chain, as well as the history of each product.
Who Created VeChain?
The VeChain project was started in 2015 by Sunny Lu. He is currently the CEO of the VeChain Foundation. He has a long history of corporate leadership. Before starting VeChain he served as the CIO and CTO of Louis Vuitton in China.
This experience will prove to be key for the project. VeChain is focusing on the luxury goods markets and Sunny Lu’s familiarity with this industry will give the project a head start compared to competitors in this space.
Luxury goods, to no one’s surprise, are usually very expensive. Buyer’s want to ensure that the item that they are purchasing is the real deal. For example, if you were to purchase a Louis Vuitton handbag you would want to make sure that it is authentic before purchasing it. Now you’re getting the picture, right?
This is why VeChain paired with Sunny’s experience is a good fit. VeChain’s blockchain solution will be able to deliver this type of information. And Sunny will be able to cater the platform to the customers that he already has experience working with.
If you’d like to take a look at the rest of the VeChain team click here.
Does VeChain Have Partnerships?
VeChain does actually have some pretty impressive partnerships lined up. This is a good sign obviously because it means that it will benefit from the talent and connections of its partners.
DNV GL is a global quality assurance and risk management company. That sounds fancy but all they really do is help companies deliver end products that are safer and of higher quality. They are a consultancy company if you will. This partnership makes a whole lot of sense because DNV GL is already consulting tons of clients on supply chain management operations. Include VeChain and you have a whole new product offering to these clients.
PricewaterhouseCoopers fits right in here as well. One of the Big 4 accounting firms, PwC helps all types of clients audit their financial statements. They are basically telling investors that a company has the inventory they say they have on their balance sheet. VeChain seems like a pretty good way to get that done also because it’s network will report on the current (and historical) status of all items in the supply chain.
To see a full list of VeChain’s partners please click here.
So Is VeChain A Good Buy?
The answer – you’ll have to do your own research. Take a look at the links that I provided below. Read the whitepaper and the whitepaper of competitors like WaltonChain. Form an opinion on why either is the right way to execute on the use case.
There’s no doubt that the team behind VeChain is experienced. The partnerships are there and the use case seems to be solid. These are all good signs. But before an opinion can be formed on VeChain we need to compare it to the rest of the projects that make up the cryptocurrency environment.