VeChain is one of the earliest blockchain companies in the world. It was founded in 2015 by Sunny Lu, the former chief information officer of Louis Vuitton China. It is now a blockchain platform designed to enhance supply chain management and business processes. The VeChain platform has two distinct tokens: the VeChain Token (VET) and the VeChainThor Energy (VTHO). VTHO is used to power smart contracts on its native blockchain, while the VET is used to transfer value between participants in the VeChain network.

Sunny Lu – CEO of VeChain

How Does VeChain Work?

VeChain aims to “build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed transfers”.

Traditional supply chain data for business processes and information flow are divided among multiple stakeholders. VTO says that their platform uses blockchain technology to provide necessary information linked to a product and its business processes to stakeholders and create greater market transparency. How do they do this though?

Managers assign a product’s QR code with a unique VeChain ID. This VeChain ID is stored on VeChainThor, which the operation staff collects and uploads to the blockchain. Real-time information on the product is regularly uploaded to the blockchain through smart chips and Radio Frequency Identification (RFID) tags and sensors. When the product reaches the consumer, they can scan the tags and obtain information directly from VeChainThor’s ledger.

VET Price Hisotry

What are the applications of VET?

VeChain is primarily used to track, identify, and verify products from the manufacturer to the customer. Because the product is constantly monitored, problems that arise are easily communicated to the relevant stakeholder. For example, a vaccine packet was ordered by a customer. The customer noticed that the vaccine was stored outside its prescribed temperature range, and informs the manufacturer. The manufacturer can then adjust the temperature of the vaccine in transit, or prepare a replacement for the customer.

VET can also be used to verify the authenticity of products, especially luxury goods. Counterfeit products are abundant, especially with online shopping. Customers can use the VeChain ID to check if the products they received are counterfeit or not.

The VeChain Foundation became the first blockchain entity to join the China Animal Health and Food Safety Alliance. It provided food production traceability in order to heighten food safety.

VeChain has also partnered up with major companies like Walmart China, Kuehne & Nagel, and Group Renault to develop streamlined product management, smarter parcel tracking, and a digital car maintenance ledger respectively.

There are endless applications to VeChain, especially with the digital age we have now.

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