Vechain is a blockchain and cryptocurrency developed to deliver a decentralized platform that caters for logistics and supply chain management.
Through asset digitalization, the Vechain platform allows manufacturers to add products to the platform with the use of Vechain Identity Technology (“VID”). The entire supply chain is able to follow the movement of products through the supply chain.
In addition to supply chain management, the Vechain platform also supports the recording of ownership of products that are digitalized with smart contracts that have private and public keys – the private key giving the owner of the digitalized asset access to the asset.
Examples of VeChain use include:
- Cold-chain Logistics: The cold-chain logistics solution uses proprietary IoT devices to track key metrics through the entire journey. VeChain embeds data management and sharing in every process, making cold-chain logistics transparent, regulated, secure and reliable.
- Automobile: The Auto solution creates a digital passport of a vehicle recording all data including repair history, insurance, registration and even driver behavior throughout its lifecycle. VeChain puts data into the hands of the owners, making data management comprehensive, accessible and transparent.
- Medical & Healthcare: The blockchain solution can track end-to-end production processes and the use of a medical device. With a patient’s authorization, VeChain can enable patients to securely share their biometric data with their doctors to enable real-time monitoring. VeChain also makes the production and use of medical devices safer, better regulated, efficient, etc.
- Luxury & Fashion: VeChain Luxuries embeds smart chips within luxury goods, so brands can monitor their sales channels in realtime to prevent illegal overstock trading. Consumers are also able to verify the authenticity of the luxury products.
The platform integrity is maintained by a network of nodes, with Vechain tokens needed to, not only execute smart contracts but also reward nodes for maintaining the Vechain network.
VeChain, founded in 2015 by Sunny Li, has a dual-coin structure, with the existence of VET and VeThor coins. The model was developed to prevent transaction fees from being directly exposed to the volatility in the price of VET, making the VeChainThor blockchain more suitable for conducting business / financial activities in both ordinary enterprise and governments.
- Functions of VET:
- Serves as the intermedium of value, i.e. smart payment currency.
- Represent the right and privilege to occupy and use the VeChainThor blockchain.
- Carry out the economic and business activities which contributed value to the entire VET circulation.
- Functions of VeThor:
- Represents the underlying cost of using VechainThor blockchain.
- Supports payment transactions and smart contract executions.
The VeChain blockchain has built-in governance tools, is considered highly scalable supported by sidechain capability, with IoT solutions and flexibility for real-world use.
- Governance: Balance between decentralization and efficiency has achieved the use of governance tools including voting and KYC.
- Proof-of-Authority: PoA consensus consists of 101 authority nodes which are controlled by a whitelist. Each node is required to meet VeChain’s KYC requirements, hardware and security standards.
- High Scalability: The PoA consensus supports scalability with transactions per second capable of reaching 10,000.
Some distinct differences and characteristics of VeChain include:
- VeChain has a dual coin structure, to remove the effect of cryptocurrency volatility on transaction fees.
- VeChain was developed to support supply chain management.
- A proof-of-authority consensus is used, where each node must go through a VeChain KYC.
- There are a total of 873,378,637 VeChain tokens (“VET”).