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Updated on Dec 18th, 2023
What is VeChain?
VeChain is a blockchain platform with the goal of improving supply chain management and business processes. Its goal is to use distributed ledger technology to streamline complex supply chain processes and information flow (DLT).There are two distinct tokens on the Vechain platform: VeChain Token (VET) and VeChainThor Energy (VCE) (VTHO). The former is used to transfer value across VeChain's network, while the latter is used as energy or "gas" to power smart contract transactions.
History of VeChain
Sunny Lu, the former chief information officer (CIO) of Louis Vuitton China, founded VeChain in 2015. It began as a subsidiary of Bitse, one of China's largest blockchain companies, and is one of the few block chains with a significant customer base among established companies. The VEN token initially operated on the Ethereum blockchain. In 2018, VeChain migrated to its own blockchain and rebranded. The VEN blockchain was rebranded as the VeChainThor (VET) blockchain as part of the rebranding.The white paper for the VeChain blockchain platform outlines its goals. The company's initial goal was to disrupt the supply chain industry by making data actionable and transparent. It also intends to be a pioneer in dApps and initial coin offerings (ICOs) built on VeChain.VeChain has formed strategic alliances with a number of companies over the years to help achieve this goal. Among them is a deal with PricewaterhouseCoopers (PwC) to use VeChain's blockchain-powered solutions to improve product verification and traceability for the accounting firm's clients.VeChain has also collaborated with Renault, developing a digital car maintenance book that cannot be tampered with in collaboration with Microsoft and Viseo, and is the government technology partner Gui'an, an economic development zone of the Central Chinese Government.
Salient features of VeChain
- According to VeChain, its mission is to "create a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers."
- Currently, supply chain data for business processes are compartmentalised in silos among multiple stakeholders. This has an impact on information flow, which is once again divided among stakeholders.
- Blockchain technology, according to VeChain's white paper, can solve "this asymmetric information problem and allow ownership of data to return to and empower its owner." The VeChain platform claims to provide authorized stakeholders with a 360-degree view of necessary information related to a product and its business processes (such as storage, transportation, and supply) and to increase market transparency.
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