To the untrained ear, the description of VeChain, a "distributed business ecosystem" built by "leveraging blockchain technology," might sound a bit generic, but savvier crypto-enthusiasts realize the 2-year-old company's platform for product information management stands to alter the modern concept of the supply chain. If successful with its grand goals, VeChain will usher in a system where consumers and retailers have more access to information about products. As a result of this increased transparency, they will be better able to determine the authenticity and quality of products as well, or so VeChain is pushing.
The term "blockchain as a service" has been coined to describe such companies that want to significantly change businesses as VeChain does, and there are plenty showing the nascent idea some interest as 2018 has seen a significant spike in value of the VEN token, to around $5.90. At present, VeChain has a market cap of $2,817,577,629, or 279,247 BTC. This is coupled with an approximate 24-hour volume of $57,911,900 and a supply of 477,712,609 VEN.
VeChain: Competition, Pros and Cons
The VeChain platform is quite dissimilar from many other blockchains and associated cryptocurrencies one might view as typical. For starters, the emphasis on the supply-chain management process is one that is unique. The network it has envisioned is one where all information about the movement of products throughout a supply chain is recorded, verified and accessible by consumers and retailers. This, it believes, will put the ecosystem on even footing, making it more secure, but it begs the question, "How?"
The answer is through asset digitization. With VeChain's system, manufacturers assign unique identities to their products on the platform, then track the movements of these products through a series of NFC chips, RFID trackers and QR codes. While it might not seem like the most thrilling of technologies, this system has the potential to disrupt counterfeiting operations because combining the blockchain technology into the mix removes the need for trust in the supply chain, and consumers can be certain the products they receive are the genuine article by way of a quick scan.
This isn't the only way in which VeChain plans to implement, though. The company recently announced that it would be rebranding as VeChain Thor, moving its mission beyond the supply-chain management market so it could dip its toes into the world of Enterprise dApps as well. With that change in focus also comes a change in the VeChain ecosystem to sustain the slightly revamped business model, what it has termed "VeChain Thor Power." Key to this model will be a two-token structure that functions at different levels of the system.
By splitting up the system into the VET and THOR tokens, it will be able to make the "VeChain Thor blockchain more suitable for conducting business/financial activities" while simultaneously shielding the network from the volatility of price fluctuations. As VeChain puts it, "[N]o matter how high the value of VET becomes in the near future, our ecosystem will still function as intended."
"As intended" is with VET as VeChain's smart payment currency, the "store of value," while THOR serves as the "underlying cost of using the VeChain Blockchain." It is consumed when performing operations on the blockchain (transferring VET, executing smart contracts, and so on). VeChain's smart contract and dApp functionality will be reminiscent of originators like Ethereum. Whether it can make a dent in this space with so much competition remains to be seen, but it's been steadily forging partnerships (the Chinese Government in particular) that might give it a leg up.
While the announcement of VeChain's pivot into smart contracts and dApps has drawn some interest and helped boost the value, it has also drawn some skepticism from naysayers who are unsure if the company's transition will be a successful one. Those in VeChain's corner will note, however, that the company already has a history of achieving results and delivering on a functional product, which is more than can be said for many a recent blockchain technology.
The Uses of VeChain
VeChain doesn't just have possible use cases for its technology laid out on its website. It has specific examples of the product in action in fields as diverse as liquor, luxury goods, automobiles, retail and even agriculture.
One example is the tracking and authentication platform created for wine bottles, which helped improve both safety for consumers and curtail counterfeits from entering the supply chain. On top of that, instances of mishandling were reduced as well, keeping product secure and in pristine condition when it arrived on shelves. If VeChain is as adept at smart contracts and dApps as it is at supply chains, it will be interesting to see what it comes up with next.
The Future for VeChain
The future for VeChain lies in its ability to successfully execute its pivot from supply-chain management blockchain technology to a smart contract and dApp platform. Progress and updates on this process can be gleaned from its Medium page, with critical details about the rebirth of the platform coming from the article VeChain Apotheosis Part II. If all goes according to the company's plan, it will rival Ethereum in both the size of its user base and functionalities of its platform.
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