What Is VeChain?

What Is VeChain?

The value of VeChain recently saw a nice 43% jump in value to a market cap of $196,095,335. It bills itself as “the world’s leading platform for products and information”, and that might not be entirely hyperbole when it already partners with leading luxury product designers to combat counterfeiting and municipal governments to increase the efficiency of their operations.

There are already indications that VeChain partners with premium fashion accessory brands that have suffered from having the market flooded with cheap counterfeits. VeChain takes full advantage of the decentralized nature of the blockchain to ensure that its services can stay up and running even when one or two of its nodes might go down.

Who Uses VeChain?

Attempts to explore VeChain’s clients will produce a pop-up that indicates that its platform is still in development. The roadmap shows that this company has already brought high-end retailers on board and Version 3.0 will go live in Q2 2018.

By the end of 2018, VeChain should be ready to handle large-scale industrial and agricultural applications, implement a commercial environmental system, and integrate the Internet of Things.

Vechain does indicate that the platform will be able to provide services for greater supply chain transparency, agricultural applications that rely on real-time data, logistics companies that rely on predictable transportation and storage to function, municipal governments that worry about inefficiencies that drain limited funds, and the food and drug industries that worry about the integrity of their supply chains.

There may be such a thing as being a control freak when it comes to making sure you know where the products you buy come from but, if so, VeChain may be able to reassure the most hardcore control freak about the authenticity of the products and services that people use every day.

VeChain is bootstrapping Blockchain’s nature to make sure that you never have to worry about trusting the system because it is both transparent and immutable. VeChain isn’t doing anything that industry insiders didn’t promise was possible with blockchain. It’s simply developing an enterprise- and industrial-level system based on this new technology.

Governance of the entire system will be provided by a series of committees that specialize in PR, strategic decision-making, technical audits, renumeration, and nomination.

Investment In VeChain

VeChain became one of PwC’s “incubator” companies in May 2017 so that it could take operations in Hong Kong and throughout southeast Asia to the next level and develop its platform further so that it can be released to the general public. VeChain is also a subsidiary of Blockchain-as-a-Service provider BitSE.

VeChain’s VEN tokens come from an Initial Coin Offering earlier this year. The plan was that investors could use the VEN token to obtain goods and services on VeChain’s platform. Due to regulatory requirements, VeChain issued a statement that it would issue refunds for VEN tokens.

Won’t Regulation Spook Investors?

Possibly; it could just be that VeChain ran afoul of U.S. Securities and Exchange Commission regulations and that’s why I was seeing the pop-up when I went to check out the ICO. That’s too bad; the fact that PwC is interested could have given it a boost above the majority of ICOs.

In any case, VeChain doesn’t seem to be very discouraged by the setback. As PwC Singapore’s Executive Chairman Yeoh Oon Jin put it when announcing PwC’s incubation investment:

“Disruption is here to stay in our current volatile business environment and it brings both opportunities and challenges. We firmly believe that it is through embracing disruptive change that allows innovation to flourish. This is an exciting milestone for us, and we are confident that together with VeChain we will bring more value to the marketplace through collaborative innovation.”

VeChain also has an impressive 111 nodes in Asia and Europe and BitSE employs 70 people worldwide, including 50 blockchain developers.

VeChain’s activities are supported by a nonprofit foundation that will assist in development, construction, governance and promotion of its blockchain system, as well as encourage and work with its clients on ecological harmony.

The foundation takes a different approach to developing blockchain by encouraging greater efficiency in decision-making and governance, while avoiding the conflicts that have affected blockchain and cryptocurrency developers as a whole.

In any case, it will be interesting to see what VeChain can do with its finalized platform and which direction its tokens’ value end up taking. Although there’s a refund offer out, the fact that VEN is up by 43% in impressively active trading may mean that the token (and VeChain) won’t go away anytime soon.

Thanks for reading.

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