What is VeChain? The Blockchain Supply Chain & Logistics Solution | Blockchain Central

Hey everybody, welcome to a new episode on
BLOCKCHAIN CENTRAL! Today I want to introduce to you VeChain. It was founded in 2015 in Singapore. The project is commonly known as the Ethereum
for business. VeChain’s vision is to build a trust-free
and distributed business platform. The goal is to enable transparent information
flow. Efficient collaboration and high-speed value
transfers are also planned. Overall it tries to fix the biggest issue
of supply chain management. The problem is tracing products from the point
of origin to the point of consumption. With the help of VeChain, production and supply
chains should become trans-parent. This is true for all market participants. Those are companies, suppliers, retailers,
and consumers. VeChain wants to make blockchain ready for
mass adoption. For that, they created the VeChain Thor blockchain
network. It went live in July 2018. The network features new economic and governance
models. VeChain Thor combines two main functions:
Smart Contracts and IoT. Smart Contracts help to automatically trigger
actions on the blockchain. It follows the "if-then principle".

Thus, a certain condition can trigger a payment. On the other hand, VeChain uses state-of-the-art
IoT solutions. This helps realize the interface of the VeChain
Thor blockchain to the real world. Technical solutions such as RFID tags, NFC
chips or QR codes are used. RFID chips are tiny chips that transmit data
in form of radio waves. They are also used in contactless credit cards. NFC is a similar technology which most phones

It is used when paying by smartphone. These two features help companies to track
products in a digitized supply chain. For example, imagine the following scenario. You are the head of a big fishing company. Your customers care about the quality and
the freshness of your fish. However, you rely on the logistics company
and the grocery store. They need to handle your fish in the right
way to deliver your promise to customers. With VeChain your product gets tracked along
every step of the supply chain.

RFID tags or QR codes record at which time
the product arrived at which place. IoT sensors can, for example, check the temperature
and humidity. This information is then saved on the tamper-proof
blockchain. It enables you to closely follow the product
journey and the quality of your product. Customers yield a lot of benefits from VeChain,
too. They can scan a QR code on the product.

The VeChain app then tells the customer about
the quality of the product. As the blockchain is immutable, fraud is easy
to detect. This has a lot of potential for medical drugs
and luxury goods. Both industries suffer from counterfeits. So, with the VeChain blockchain, companies
can closely monitor their supply chain. Monitoring can now extend beyond the compounds
of the factory. Customers can check the quality of their product
and are protected from counterfeits. This helps the company to gain trust and establish
a business relationship. But this is not the only thing VeChain can
do. According to the VeChain whitepaper, the blockchain
will support the development of dApps. dApps are distributed apps.

On VeChain they have a B2B focus. ICOs can also be launched on VeChain. Finally, the platform can host blockchain-as-a-service
applications. To support all this, VeChain is fast. The block creation time is one second. This gives the network a capacity of 10000
transactions per second. In the VeChain ecosystem, two cryptocurrencies
are in circulation. The first one is called VET and is used for
transactions and smart payments. It also incorporates a voting right for the
network’s governance structure. VET can be staked. Staking means putting VET into a dedicated
wallet and not using it. It then generates interest payments in form
of Thor Power Tokens. This is the second currency. Adding information to the blockchain costs
Thor Power Tokens. In this process, 70% of Thor Power Tokens
are eliminated. The other 30% go to the validation nodes as a reward. This dual currency strategy is supposed to
keep the VET token price at a stable rate.

It prevents price fluctuations that are harmful
to customers and businesses. In general, the VeChain Thor network has the
potential to attract large enterprises and small business. They all can conduct transactions via the
blockchain. VeChain is so attractive to businesses because
the team tried to focus on their needs specifically. I hope you enjoyed this video. Don’t hesitate to read the VeChain white
paper for further information. Please feel free to leave your thoughts on
VeChain in a comment below. Before you go, please note that this content does neither represent financial, legal, or tax advice, nor is it supposed to be understood or interpreted as a solicitation to buy or sell any securities, coins or tokens. See you next time on blockchain central..

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