The goal or rather focus at VeChain is on the blockchain-based processing of supply chain management. VeChain uses Distributed LEDGER Technology to improve and optimize business processes.
As a central authority, transparency and trust in a comprehensive platform should be guaranteed. Initially, under the abbreviation VEN, VeChain was renamed VET with the start of the Thor Mainnet. The Chinese company BitSe is behind the project. This fact is one of the main reasons for the close cooperation with the Chinese authorities. In this way, future regulations should not cause any problems in the case of mass use in the economy.
The VeChain solution can be used in almost all areas of product and supply chain management. In medicine, medication could be traced using tiny NFC and RFID chips. Above all, the globally flourishing drug trade on the black market could at least be curbed. Technically, this tracking takes place via a digital twin on the blockchain. Two tokens are used on the blockchain itself. The exchange-traded VET token serves as a classic means of payment. The second token, VTHO, is comparable to the function of gas on NEO's blockchain.
VeChain is already one of the few cryptocurrencies that can look back on a functioning product that is used in practice. The team behind the project is pursuing a solid approach. Via VeChain's blockchain, products should be able to be tracked and assigned along the supply chain. In a global community in which products can no longer be manufactured centrally in one place but across borders around the world, tracking the products is quite a big deal. VeChain creates the infrastructural basis for this in the form of a blockchain.
Well-known companies are already using the VeChain solution. Online retailers are given the opportunity to securely trace their products to avoid falling victim to returns fraud. By connecting to an insurance object, in the event of an insured event, insurance companies can precisely check whether there is a right to payment. Among other things, the large automobile manufacturer Renault also uses VeChain to check certain data, such as meter readings, maintenance, and repairs.
Closing Thoughts
VeChain has done a good job in the past and brought a working product to the market. However, that begs the question of whether the exchange-traded VeChain Token VET could also benefit from the success in the form of an increase in value in the future? Let me know your thoughts in the comments below, and as always, thanks for reading!
