VeChainThor is a working Blockchain-as-a-Service project that is over 2 years old and utilizes blockchain technology to collect and distribute critical data on a variety of different products throughout their lifecycle. The technology combines a scannable smart chip with blockchain functionality to authenticate luxury brands as they move through the distribution process. VeChain also tracks and provides quality control of agricultural, dairy, and food products through their market cycle, tracks drug distribution and supports use by governments for proprietary tracking purposes. Combating global counterfeiting (costing an estimated $450 billion a year) (4), ensuring auto parts are genuine and comply with safety regulations, alerting distributors to changes in the temperature and environment of food storage, tracking sensitive or vulnerable articles during their transport journey are just a few important applications. VeChainThor’s partners include Microsoft, China Unicorn, Koehne & Nagel, Renault automobiles and the Chinese government.  VeChain is also part of PricewaterhouseCoopers incubation program for blockchain adoption.

PROS

  • The global need for this service
  • Highly skilled and accomplished team
  • Trustless
  • Automated tracking
  • Commercial partnerships
  • Government partnerships
  • Ambitious plans for growth

CONS

  • Lack of specific industry focus
  • Growing too quickly
  • Risky governance model
  • Some centralization
  • Major competition (e.g. from IBM/Maersk

Deeper Dive

How often have you wondered if that expensive designer bag you just bought is authentic, if the apple you are eating is really organic, or if your drugs are as fresh and effective as they are supposed to be?  VechainThor will give you peace of mind by providing the production and distribution channels with information to track and authenticate these products, and many more, every step of the way. This information will also be made available directly to us consumers as well.

With the advent of the blockchain, companies will now be able to emerge from the dark ages of supply chain management and accurately track their products from creation all the way to the hands of the consumer, transparently and accurately. VeChain technology enables this. The best way to describe VeChainThor’s technology application is to give you 7 Use Case summaries taken directly from their website:

1) Cold-chain Logistics: Cold-chain supply chains offer temperature controlled, uninterrupted production, storage, and distribution activities for perishables such as agricultural produce, seafood, frozen food, chemicals and drugs (5). VeChain uses proprietary IoT devices to track products through every phase of their journey, ensuring reliability and security.

2) Automobile: VeChain provides current and new owners with records of all the data pertaining to a vehicle including registration, repairs, insurance, and driver behavior throughout the life of the vehicle.

3) Medical and Healthcare: In addition to tracking the manufacturing processes of special application medical devices, VeChain enables patients real-time monitoring and sharing of biometric data with their doctors. This ensures both the reliability of the device and alerts medical personnel when a critical condition develops in the patient regardless of his or her location.

4) Luxury and Fashion: Smart chips embedded in luxury goods enable both brands and consumers to verify the authenticity of products purchased and prevents illegal overstock trading.

5) Liquor: VeChain enables the blockchain to store data of wine production at every step and enables consumers to verify the information by scanning a QR or NFC Chip authenticating the entire process.

6) Agriculture: Utilizing blockchain enabled cloud services, VeChain provides certification of organic agriculture products by using IoT sensors and mobile feedback devices to detect and provide secure data on climate and soil conditions, pesticide impact, fertilizer saturation and other critical data.

7) Logistics: VeChain provides private and secure information to manage logistics cycles to service providers and customers for all types of goods and is setting the stage for more innovation in this vital area of business.

These Use Cases demonstrate how VeChain aims to become the platform of choice supporting all trust-free blockchain business applications. Utilizing a refined Governance System to support innovation, a New Economic Model to balance token appreciation with lower transaction costs, development of new Value-added Solutions by non-technical business participants, and the ability to continue to Adapt to Regulations and changes in the global business environment, the new VeChainThor Blockchain (called Blockchain X) was created on June 30, 2018 (6). The migration to a DApp platform began with this Mainnet launch, introducing a two token system. It uses Proof of Authority protocol which is maintained by 101 Authority Masternodes and enables Validators to mine blocks (1).

The tokens used by VeChainThor are VeChain (VET) which companies use as currency on the blockchain to make smart payments for business activities, and THOR (VTHO) which is used by holders to run smart contracts and applications on the blockchain and to reward the nodes for maintaining the network. THOR is distributed to VET holders in proportion to the amount of VET they hold and re-adjusted by the VeChain Foundation based upon network usage.

The Vechain Foundation itself is a Singapore-based company with offices in China and Europe. It started as a subsidiary of one of China’s largest blockchain companies, BitSe, and consists of a team of over 150 members (4). The very capable core team consists of 12 members led by Sunny Lu as CEO, Jay Zhang as CFO, Kevin Feng as COO, and JianLiang Gu as CTO. Lu worked at Louis Vuitton China, and Jérôme Grillères , European Director, worked at Goldman Sachs and Barclays (7).

Ambitious plans include a dedicated wallet (just released), development of Crosschain and Sidechain technology, and broad expansion of the VeChain Ecosystem into many other areas of business.

VET/VTHO can be bought on several exchanges including Binance, Bithumb, Bitfinex, KuCoin, Huobi, CoinSpot and others. The tokens can be stored on the VeChainThor Mobile Wallet and Ledger Hardware Wallet.

We sleep better with VeChain assurances that they have our backs: “Our original vision has never changed. The dream is still the same as before, that is: Building a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers. “

Key Terms in the Whitepaper include:

  • New Governance Model
  • New Economic Model
  • Regulation and Compliance Capabilities
  • VeChainThor Mainnet and Matching Infrastructure Services
  • Trust-Free
  • Distributed Ecosystem
  • Cloud integration
  • IoT

Key Terms in the Roadmap include:

  • VeChain Crosschain Technology
  • VeChain Sidechain Technology
  • VeChainThor Ecosystem Expansion

VET/VTHO on social media:
https://www.reddit.com/r/Vechain/
https://twitter.com/vechainofficial
https://www.facebook.com/vechainfoundation
https://t.me/vechain_official_english
https://www.youtube.com/watch?v=r-VgKid3Azc

Additional VET/VTHO Sources:
https://unhashed.com/cryptocurrency-coin-guides/what-is-vechain-vet/
https://www.reddit.com/r/Vechain/comments/7nukjp/a_simple_one_page_beginners_guide_to_vechain_and/
https://medium.com/@vechainofficial/vechainthor-wallet-ama-5650dea84ccb
https://coinmarketcap.com/currencies/vethor-token/

Sources:
(1) https://www.vechain.org/
(2) https://cdn.vechain.com/vechainthor_development_plan_and_whitepaper_en_v1.0.pdf
(3) https://www.vechain.org/#roadmap
(4) https://coincentral.com/vechain-thor-beginner-guide/
(5) https://en.wikipedia.org/wiki/VeChain
(6) https://ethereumworldnews.com/vechain-thor-blockchain-launch-2018/
(7) https://www.vechaininfo.com/about/

If you would like to talk about VET/VTHO, or any other cryptocurrencies, join us on our discord! https://discord.gg/Hr3EUH9

Contributed Richard Houser