Johannesburg, 12 Jul 2021
According to the company’s goal, VeChain is aimed at creating a calculated business ecosystem that is trust-free. The plan is to achieve this while maintaining transparent information flow along with efficiency and high-speed productivity.
In 2015, VeChain was founded by Sunny Lu. Initially, it was a subset of one of the largest blockchain companies in China called Bitse. In the short time of its operation, it has grown into having a major stake in the blockchain market.
The need for the integration of a system that functionally enhances the chain in crypto-currency can not be over-emphasised. With the extensive adoption levels of crypto-currencies in recent years, their supply chains for data are being stretched to their limits. Currently, the supply chain in use for businesses is being shared in compartments among multiple stakeholders. The statement in the VeChain white paper on the blockchain network states that it can provide an all-round view of every bit of information that can be linked to the business process of a product or platform. Apart from the virtual nature of crypto-currency, of which this technology can be extensively applied in tracking certain transactions, it can also be used for several other things. Among the list is its application in determining the authenticity, quality and tracking of certain physical products through the supply chain.
The VeChain blockchain platform, right from its creation, was meant for the public to aid in business transactions. This has led them to partner with several companies strategically over the years. The goal is for a system that is friendly not just to crypto-currency traders on several platforms, but also regular businesses. One of the partners for this project was PWC, an accounting firm. The application of blockchain technology to its system was based on the improvement of its client base and overall authenticity.
How the system operates
The VeChain system has tokens, just like regular crypto-currencies. In this case, it has two tokens – VET and VTHO. The former is mainly used in executing smart contracts due to the value it carries. This means all transactions relating to money occur using this token, making it ideal for trading on Bitcoin system. The latter, on the other hand, is quite different. It is used in executing transactions and carrying out operations on the network. In essence, it supplies the energy required to power transactions.
The concept being operated here is similar to that of Ethereum’s system in which the core developers have to dedicate a portion of the tokens for transactional purposes. This part is not exposed to the public from the start, limiting its use to transaction validation processes. The VeChain two-token systems solve the problem of this dedication. Due to this, there is a more effective way of executing transactions since there is an in-house payment platform being currently used by the system. The main reason Ethereum does not use this system is that its ether prices are constantly shifting in the market. This forces developers to constantly make accurate predictions of the estimated costs of each transaction. In cases where these predicted estimates are wrong, the transactions fail. The extension of this is a ripple effect on the network.
With each new development in the crypto-currency world comes a solution to a problem that was previously battled. This is why the need for proper analysis of the industry is required before embarking on any kind of development. In the current application of VeChain, the problem of the dedication of resources from the available stock is eliminated.
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