Blockchain startups assure users that it is their product that will play an important role in the development of cryptocurrencies and can change the world, but all digital assets and tokens are useless if they cannot be used in real life. In this regard, it is especially interesting to observe the development of blockchain-based IoT projects.
One of these projects is the Chinese platform VeChain. It offers effective solutions for combining blockchain technology and the Internet of Things. Such a tandem can solve the problems of business, logistics, product labeling and storage of important data. Lets figure out what VeChain is and how this project can change the world.
VeChain is a public network for businesses and private users that helps advance blockchain in business and everyday life.
The key task of the platform is to verify things, people or assets. Together with the technologies of the Internet of Things, the system helps not only to create large registries, but also to track changes in information in them in real time.
The platform uses the coin of the same name, abbreviated as VET, as a means of payment and investment instrument. It is a token built on the basis of the Ethereum blockchain and the EVM virtual machine, which allows exchange transactions within the platform and is analogous to a stock for a company.
VeChain introduces a new B2B and B2C services market called BaaS (Blockchain-as-a-Service), which offers a distributed and decentralized data ledger as a new solution to business problems. The project architecture consists of several modules:
A key tool of the BaaS service, a blockchain platform that allows you to introduce new business models into the structure of commercial companies to increase the efficiency of production and trade. This can be supply chain management, analysis and management of the product sales cycle, data certification, tracking product sales.
Includes its own blockchain, data synchronization application, wallet. With Thor, developers can create their own independent dApps based on the VeChain architecture, later these protocols can be integrated into ToolChain.
Subsystem responsible for the interaction of the blockchain with the Internet of Things. Includes VeChain ID for labeling goods or assets, an algorithm for processing information about objects, a device for ensuring the security of the product ID.
It is a modified EVM technology from Ethereum that brings together all subsystems for stable collaboration. It houses the SDK, smart contracts, and a public API for developing decentralized applications.
The joint work of all systems allows you to solve problems that are relevant to large companies, private entrepreneurs, owners of property, data and assets. The project continues to develop, but now users can evaluate the effectiveness of the ToolChain tool. Three versions of the service are available:
Standard: depending on the modules used, it contains low code, or does not use it at all, suitable even for non-specialists. This version includes all available ToolChain protocols, you can try the free version of the product.
For developers: a set of APIs and SDK tools for fine tuning the business model, allows you to quickly create your own dApps using built-in instructions. To receive, you need to contact the manager.
Partner version: using the standard version of the service as part of a partnership cooperation agreement. VeChain-based applications will be hosted on third-party services under the contract. More detailed information can be obtained from a specialist of the company.
VeChain was founded in 2015 by Chinese developers Sunny Lu and Jay Zhang, both of whom have about 20 years of application development and experience in using new technologies.
The VeChain project became one of the first startups in the history of the cryptocurrency market to combine the Internet of Things and blockchain technology. The system was intended to revolutionize the idea of business models in logistics, commodity science, agriculture, marketing, etc. Even today, VeChain has no serious competitors, while the project can affect 70% of the global economy by implementing its system into the structure of private companies ...
During its work, the company has registered many patents related to the use of blockchain systems. VeChain sees not only businessmen as its partners, but also individuals interested in implementing blockchain in private households.
Today the company has offices in Tokyo, Hong Kong, Shanghai, Paris, Luxembourg and Palo Alto, with over 100 employees working on the project, half of whom are the best blockchain experts in their region. VeChain is jointly developing with many renowned universities, including Stanford University, Oxford Mathematical Institute.
Some well-known companies have invested in the project. VeChains investors include PwC, Breyer Capital, Future Cap, Draper Dragon, Fenbushi Capital. The support of such significant players in the investment market speaks of the prospects of the technology and the business interest in ToolChain.
The cryptocurrency entered the market relatively recently, the first open trading took place in early August 2018. The initial days on the stock exchange did not please the investors - the VET value dropped sharply from USD 0.015 to USD 0.0077.
After being added to several major exchanges, the VET rate went up. Already on September 5, 2018, the cost was USD 0.0194 per token. This peak is still the highest in the history of VET. It is worth noting that such an increase in the rate at the time of the recession of other cryptocurrencies speaks of the high prospects of the project. Market capitalization reached USD 1 billion that day.
After that, the VeChain rate dropped even below the August values. Over the next year, the coin showed extremely low volatility, one of the lowest for volatile cryptocurrencies, which was most likely due to the trend towards retaining traders investments in ambitious tokens.
Today, as of early 2020, the price of VET is USD 0.0061 per coin, the market capitalization remains at USD 350-400 million. The cryptocurrency holds the 29th position in the overall rating of digital assets in terms of capital content.
VeChain offers the crypto market unique solutions for the strategic transformation of management models. But the popularity of the project is difficult to assess using standard methods - most of the companys clients are in the "real" world and, most likely, do not use VET assets.
It is impossible to track the actual popularity of the platform by partner level - the blockchain does not provide information on the number of implemented ToolChain modules, therefore, to assess the demand, we will use indirect indicators.
First, the number and regions of distribution of offices. Offices are located in different countries, hence the business is conducted internationally. According to news reports, the project is particularly appreciated in China, Germany and the United States, where the introduction of blockchain into large-scale production significantly reduces costs. If the VeChain product was not in demand, the leadership would not have expanded so rapidly.
Second, it is important to consider market performance. The capitalization of the digital currency remains at the level of 300-400 million USD, while we observe an insignificant daily trading volume and low asset volatility. Such indicators indicate the prevailing trend of long-term investors holding the purchased VET tokens without trading them on the exchange. This speaks of the ambitiousness of the project, which most private investors believe in.
Despite the complexity and innovation, VeChain already has competitors, one of the main ones being the Walton project. This is another blockchain startup using the blockchain + Internet of Things concept. The Walton system implies the use of blockchain implementation tools for businesses, administrations, government bodies, social companies.
However, the total capitalization level of the Waltonchain project does not exceed USD 20-25 million as of the beginning of 2020, i.e. VeChain is more than 100 times ahead of its closest competitor in terms of invested market assets.
Speaking of popularity, it is important to mention the current partners of the company. Among them, not only private entrepreneurs, but also large companies, ToolChain is used to optimize supply and management processes in BMW, Renault Group, Haier, DB Shenker.
The basis of the VeChain service is the optimization of management, turnover, sales and logistics in B2B and B2C. To track and update the data, the blockchain and a special technology for marking objects VeChain ID are used.
Using the ID, a specialist can assign a unique identifier to a product or thing and place it in a distributed ledger. Subsequently, a special program in the blockchain will add information about the movement and change of the structure of the marked object. This will help significantly increase productivity in areas such as retail, farming, fossil fuels and raw materials, ecology, logistics, copyright and archiving.
For each area, VeChain specialists develop their own data processing algorithms, mathematical models of an effective business system, which allows you to solve problems in a personalized way.
The VET token uses the Ethereum architecture to operate and thus reduces the cost of creating your own cryptocurrency network. The coin is needed to pay for services within the companys ecosystem, create mobile applications, and play the role of platform “shares” in the digital asset market.
VeChain transactions follow the same rules as the ETH exchange. The companys token, which has the ERC-20 standard, moves freely between cryptocurrency wallets that support this format, which, in turn, makes the coin convenient for network participants and allows you to sell surplus VET on exchanges.
Projects like VeChain are designed to revolutionize the modern world. Developments that use new IoT and blockchain technologies are becoming a new discovery for the economy, just like the Internet has recently become.
The VeChain architecture allows any entrepreneur or company to improve the performance of their services simply by choosing the right ToolChain modules. Large investment funds and private financiers predict the progressive growth of VeChain due to the breakthrough technology proposed by the young company.