- Project name: VeChain
- Token name: VET
- Ticker symbol: VET
- Token Type: ERC20
- Consensus: Proof of Authority
- Exchanges: 12+
- Market Cap: $220,700,932 USD as of 10/02
- Circulating Supply: 55,454,734,800 VET
- Total Supply: 86,712,634,466 VET
VeChain is a B2B focused blockchain enterprise that seeks to improve and revolutionize supply chain management, comprehensive governance and IoT integrations. The project seeks to enable the identification, tracking and monitoring of different products manufactured across the globe. Assigning unique identifiers to products and putting them on their blockchain will allow for the identification of the participant in the supply chain of the product from manufacturing to the hands of the customer as well as the real provenance of where this product has come from. For example, VeChain is looking to help fashion and luxury consumer goods brands fight counterfeit which constitute almost 10% of annual sales in Europe. By tagging products and goods from their supply chains and tracking them on their blockchain platform, the real provenance of goods can be tracked in real time. The company’s original vision is to build a “trust-free and distributed business ecosystem platform that enables transparent information flow, efficient collaboration and high-speed value transfers.“* In the creation of the platform, the VeChain team seeks to deal with major enterprise adoption hurdles in the space. These include the governance & economic model as well as the use of different technologies and regulatory flexibility.
The product the VeChain team is building is the VeChain Thor Blockchain platform which will serve to facilitate all interactions and transactions in the ecosystem of the supply-chain management ecosystem by massively reducing costs and bringing end-to-end transparency. The company is planning to revolutionize the industry and realise substantial social benefits from tracking products and services. Trust is the biggest cost of doing business and through the use of a blockchain platform that is cryptographically secured, businesses can focus on improving their products and services rather than their transaction. Systems integrations and business collaboration within the supply chain in its current state are inefficient, complex and error-prone. Issues associated with the current systems such as those pertaining to data security, business confidentiality, privacy and legal liability between the brands, manufacturers, distributors, retailers, consumers and service providers. The VeChain Foundation is a nonprofit entity that has a unique governance model in which the Board of Steering Committee that is selected by token holders decides on critical strategies and the different operational units. In terms of the economic model, VeChain has isolated the transaction fees from the volatility of the VET tokens. This offers price stability and transaction predictability between the stakeholders. On the figure below, we can see the difference between the current centralised permission system of data sharing compared with a tamper-proof one that is easily accessible by all stakeholders and immutable on the blockchain.
- VeChain Thor Platform stakeholders – business owners, application service providers, smart contract providers, infrastructure providers, VeChain foundation & the VeChain community
- VeChain Token (VET) & VeChainThor Energy (VTHO) – tokens of the network carrying value and programmable in smart contracts
- Consensus mechanism – Proof of Authority (PoA) that offers low computational power requirements, no requirement for communication between nodes to reach consensus, and is optimized for system continuity
- State-of-the-art IoT Solutions
- High Scalability & Sidechain Capability
The team members of VeChain come from different industries and countries where solid educational background, expertise and decades of combined experience work on solving the businesses goals and mission statement. Jianliang Gu, CTO is an ex-Technical Director in TCL and graduate from Shanghai University. Sunny Lu is the CEO and co-founder also graduate from Shanghai University ex-CIO of LV China. Other senior management and c-suite executives coming from PwC, HP, Deloitte. Investors featured on the website include – Fenbushi Capital, Draper Dragon & Brever Capital. These are some very serious funds that have done extensive research and vetting on anything they put money in. Fenbushi Capital is one of the biggest blockchain focus VC funds with Vitalik Buterin on his advisory board. In addition, the project has secured many tier 1 partnerships that include PwC, DNV.GL, AWS, China Unicom, DB Shenker, BMW, Renault.
The technical development of the blockchain project is led by Jianliang Gu and his team of in-house and remote developers. Bin Qian is the chief blockchain developer who works closely with Peter Zhou as a Chief Scientist. The main public Github repository for VeChain has 4 main developers working on with 26 different repos. The main VeChain Thor repo written in Go has more than 2500+ commits, 11 contributors and 300+ stars.
A Gitter channel is available with developers and enthusiast alike willing to offer a helping hand to open source contributors or curious enthusiasts.
VeChain actively shares public announcements and project developments on a number of social channels including Facebook, Wechat and Weibo. Despite being headquartered in Asia. The community team maintains a strong relationship and project following in the West. VeChain releases regular blog posts communicating developments with its followers on Medium. The page has more than 9,000 followers and monthly posts with the latest covering new partnerships with AWS and expansion of the company into North America and Europe. (as of 18/02/19) Moreover, the foundation also communicates the yearly financial report with its community through medium giving a clear understanding of the financial position, tokenomics and expenditure of the group. There is also regular video correspondence on YouTube with 6.1k followers where the team presents tech deep dives and project updates. The twitter account has 104k followers with over 500 tweets while the reddit channel has more than 54k subscribers. Finally, Telegram – 26,073 & Discord – 5,516 prove to be another great way to connect with the project ask any questions or just monitor the interactions and developments of VeChain.
- Unique governance model with detailed explanation and description within the whitepaper.
- The economic model that seeks to isolate the transaction fees from token price volatility.
- Industry-wide use cases in logistics, automobile, transport and luxury goods industries
- Concerns that the Proof of Authority consensus mechanism lacks incentivisation
- VeChain is connected to the largest infrastructure project in human history, China’s One Belt One Road initiative.
- Special focus on IoT development within the Blockchain
- Ambrosus & Waltonchain are proving to be a serious competition coming out with their own competitive product in the supply-chain industry.
VeChain proves to be a solid project, with a great management team and strong community relationships. The team consistently delivered through 2018 signing new partnerships and reaching key development milestones detailed in their roadmap. Clear detailed use cases in many different industries are being implemented and are backed by solid partners within the international business space. The motivation for building this platform is driven by social good and fixing many issues related to the human errors that exist within the supply-chain industry. The foundation serves as a non-profit seeking efficient and sustainable development that is open source. This puts a clear mark on its intentions as well as an example of a blockchain project for social good.
VeChain Website: https://www.vechain.org/
*VeChain Whitepaper: https://cdn.vechain.com/vechainthor_development_plan_and_whitepaper_en_v1.0.pdf
Blockchain Explorer: https://explore.veforge.com/
Disclaimer: Opinions are my own and not the views of my employer. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.