Vetting VeChain – a Blockchain Platform for Products and Information 🚨 This article is 6 years old...
Vetting VeChain – a Blockchain Platform for Products and Information
4 min read
Updated: Dec. 2, 2019 at 2:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In an increasingly crowded but frustratingly similar ICO environment, platforms are looking for ways to differentiate themselves. Many companies have risen to prominence following the same playbook, using similar designs, and publishing the same-sounding articles. Now that the total value of the entire cryptocurrency market is approaching $1 trillion, there is at least some semblance of a change.
Ironically, that change is usability. Go figure.
People are paying more attention to platforms that boast a working product, have an established audience, and have a clear vision for achieving success. Ripple’s recent surge is evidence of this.
Therefore, many people are looking for blockchain platforms that have enterprise-level initiatives in mind and that have the technical capability to see them through. One of the obvious applications for this is in supply chain management.
Research and consulting firm, Deloitte, recommends that
“Using blockchain in the supply chain can help participants record price, date, location, quality, certification, and other relevant information to more effectively manage the supply chain.”
That’s what VeChain is striving to impact.
A Blockchain for the Supply Chain
VeChain is a blockchain platform secures the supply chain by verifying product authenticity. Using their VeChain Identity technology, they can effectively track shipments through tags that are readable using NFC, QR, or RFI identifiers.
By outfitting a particular product with one of these tags, companies and customers can track this item throughout its production cycle and shipping journey. This is particularly useful for specialized products like certified organic grocery items or other products whose integrity is uniquely valuable.
VeChain’s ability to insert itself into the battle over counterfeit or mislabeled goods could be a significant value-add for business, and it may have an outsized ability to help it expand as an enterprise solution.
How does Vechain work? Watch this short video (1:34):
Millennials are increasingly becoming a dominant force in the retail environment, and their desire for ethically sourced products is changing the large-scale retail environment. As a result, brands are changing their strategies to accommodate their interests and proclivities. Supply chain management is a crucial component of these initiatives, so VEChain might be a “right time, right place” platform.
Moreover, using the blockchain’s smart contract features, VeChain can track item ownership. In this case, sensitive valuables like jewelry could be documented from original sourcing all the way through transitional ownership. The tangible use cases for this feature is more abstract than simple supply chain management, but it’s easy to project some valuable use cases for this feature.
Bigger Than the Moment?
VeChain is more than just a blockchain platform. The VeChain Foundation is their research and development arm, and they are responsible for, among other things, developing partnerships in the business community.
In November, the VeChain Foundation Steering committee held its first-ever meeting in Singapore. At this meeting, the platform underwent several changes that are mostly rebranding and marketing related.
First, as they advance their internal governance structure, they are dubbing this season “Apotheosis.” Taken literally, this naming indicates that the team views their current structure as the highest point of their development or the period where they finally reach their full potential. Deistic connotations notwithstanding, VeChain sees something important happening on their platform.
All of this change precipitated a naming change for VeChain itself. VeChain is now called VeChain Thor, and its digital token will be converted from the existing tokens to VeChain Thor (VET) token. The foundation is adopting a “Proof of Authority” consensus mechanism that differentiates itself from many proof of work or proof of stake consensus models already employed by other blockchains.
VeChain’s rebranding and restructuring includes a complicated mix of hype and strategy, that could help propel VeChain to fulfill their vision for their platform, or it could be the type of hype restructuring that is less indicative of substance. Time will tell. Regardless, VeChain’s digital token has accelerated since these changes were announced.
While it’s still unclear what the practical effect will be of all these changes, it does show that VeChain is willing to adapt and develop their platform to help it achieve its full potential.
It has a clear market approach, and their services are in high demand. Still, there is always the danger the token’s tradeable value will supplant the actual relevance of the platform or that it could shift priorities within the organization.
In the blockchain space, it can be difficult to differentiate substantive platforms from those that are merely trying really hard. VeChain is trying really hard, and it will be interesting to see if substance can follow.
You can buy VeChain tokens on major exchanges such as Binance, Liqui, KuCoin, and HitBTC.
