VeChain

VeChain is the world’s leading blockchain platform for products and information. VeChain strives to buid a trust-free and distributed business ecosystem based on the blockchain technology to enable transparent information flow, efficient collaboration and high-speed value transfer.
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Price
Basic
Announcement Date:
2017-08-19
Initial release:
2017-08-19
Hash function:
SHA256
Smart Contract Support:
Yes
Smart Contract Language:
Solidity
Consensus Mechanism:
Proof of Authority
VeChain101

What is VeChain?

VeChain is the world’s leading blockchain platform for products and information. VeChain strives to buid a trust-free and distributed business ecosystem based on the blockchain technology to enable transparent information flow, efficient collaboration and high-speed value transfer.

It promotes key advantages in business and corporate collaborations such as (i) relatively transparent and symmetrical information (ii) reduces the potential trust issue between different parties (iii) each person and each enterprise can find their own place and based on their contribution and value, they can obtain relatively fair reward (iv) the value is in a loop that keep expanding accompanied by the development of commercial activities with high-speed transmission.

The development has focused on a selective number of industries including: Liquor (tracking & authentication for wine bottles), Luxury (brands can monitor sales channels in realtime to prevent illegal overstock trading), Agriculture (certification of environmentally friendly and organic agriculture products), Logistics (allows various parties in the logistics cycle to access information on a transparent and immutable yet very secure platform with a private key), Medical and Healthcare (track end-to-end medical devices production process and Automobile (creates digital passport of a vehicle recording all data including repair history, insurance, registration and driver behaviour throughout its lifecycle)

How does VeChain work?

VeChain tokens (VET) are used for smart contract inclusion, which describes and executes the cooperation among parties. VET circulates through the ecosystem (consisting of VeChain Foundation, smart contract developer/service provider and end users) to let each participant use it as follows:

  • VeChain foundation receives VET from each smart contract development and service provider to pay for the GAS (needed to run smart contract and maintain operation of each business smart contract).
  • 75% of VET income will be awarded to nodes as reward. Remaining 25% used for operation, business promotion and technical development of VeChain foundation.
  • Smart contract service providers use VET to pay for GAS and provide smart contract service (Blockchain as a service). Client pays VET to participants. Application development provider provides smart contract services through collecting VET.
  • End-users pay VET to obtain products or services (potentially at reduced prices and with more available information on products). This payment is given to application provider.

At the end of 2017 VeChain announced plans for a re-brand to VeChain Thor. This means the VeChain platform will now have 2 different tokens: VeChain Tokens (VET) and Thor Power (THOR). VET will be used by companies as the smart payment currency to run business activities on the Blockchain. Businesses that own more VET will be given more rights on the new VeChain Thor Blockchain.

The ecosystem exhibits network effect as more participants bring more collaboration and efficient value flow. The key factors to VeChain’s success will be how well they develop the technology to make it capable of incorporating real products and services onto their platform and their ability to scale solutions to different targeted businesses (i.e. marketing strategy). They are hence focused on making partnerships throughout entire supply chain of targeted industries.

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