What is VeChain?
VeChain is an Ethereum-based, supply and logistics blockchain token. It aims to help both customers and manufacturers keep track of their orders and the integrity of each order, thereby reducing reduction of errors and instance of lost items. VeChain allows manufacturers to assign special attributes and unique product identities to each of their products.
Through securely maintaining this information on a ledger, the transportation of supplies can be made more transparent and its information available to anybody with the private keys for each order. In addition to providing private, supply-related information, each product can also have public information which does not require the holding of private keys to access. Their system makes use of the blockchain’s ability to be both transparent and anonymous at the same time, depending on what level of access is granted to each individual.
History of VeChain
The initial VeChain concept was designed in the second half of 2015 by computer networking specialist Sunny Lu and brought into development in 2016. Lu is a co-founder of the “blockchain-as-a-service” company, BITSE, which recently teamed up with PricewaterhouseCoopers to “boost blockchain adoption in the Asian Pacific markets.” He also has experience working in fashion and retail as CIO of Louis Vuitton China, where he helps franchises of the clothing chain spread across vast parts of eastern Asia.
After several additions, adjustments, and documentation releases, VeChain officially launched on November 2nd, 2016, with a widespread release of their “v3.0” client in May 2017, and token listing on altcoin exchanges by August 2017. One of their first model case scenario clients was a brand name Chinese wine importing company who saw VeChain as an appropriate solution to stopping the illegal distribution of “counterfeited” or imitation wines. To date, they have helped distribute over 1 million bottles of wine for the company.
VeChain has several more components with future release dates and plans for 100% of the operation to go live by Q2 2018.
How VeChain Works
Through utilization of Ethereum’s vast and open-ended API source code, VeChain has developed what they describe as a “blockchain-enabled enterprise software platform.” This basically means that it is accomplishing its goals by plugging proprietary software into the Ethereum network, which allows it to act both privately and transparently at the same time.
Product information can be accessed through scanning the QR code of a product with the VeChain app. Sometimes product information is represented in a chip under the tag of a product.
Excerpt from the token’s most recent Executive Summary:
“From recording the origins of the source materials or ingredients, servicing history or spare part replacements, through to the entire manufacturing process, all components are recorded, right up to who becomes the owner of the product and if it is sold, to whom.”
- Novel blockchain solution for merchandise logistics problems, uses own software to interact with the Ethereum Virtual Machine
- Can cut down on product forgery or imitations
- Can verify product authenticity, integrity and a wide arrange of manufacturer-designed variables