VeChain is a project aiming to disrupt the global supply chain sector. Its associated token (VEN) has achieved a market capitalization of $2,008,614,914 at the time of writing. This places VEN in the top 5 tokens and top 20 crypto-assets rankings. The VeChain team is based in Singapore.
Based on Ethereum technology, VeChain provides retailers and consumers with the ability to determine the quality and authenticity of products that are purchased. “From product source materials, to servicing history, and spare part replacements, every single piece of information about the supply chain movement of a product can be recorded and verified to bring about a supply chain management ecosystem that is secure for all participants.”
This ambitious plan is achieved through asset digitization. The VeChain Identity (VID) technology is used to mark and track a given product. VIDs are made using a SHA256 hash function, which generates a random hash value that corresponds to a VID. That VID is then be written into a Near Field Communication (NFC) tag, Quick Response (QR) code, or Radio Frequency Identification (RFID) tag, to be used for each product.
VeChain has secured a number of prestigious partners including PwC and DNV GL. Recently, VeChain made some noise in mainstream business circles by partnering with German automaker BMW.
“While details about the deal are still scarce, it is a likely bet that the partnership revolves around utilizing the supply chain enhancement capabilities of the VeChain platform for the benefit of BMW’s business process.”
From Exchanges to Nodes
An interesting, recent development is VEN moving from exchanges to staking nodes.
“To run a master node, 10,000 VEN are required. The staking of these coins has a reward of 40 coins per week. At this point, running a master node would require a significant investment, but the same amount of coins cost around $500 during the October price slump.” stated Cryptovest, a leading source of cryptocurrency news.
There is a lot to like about VeChain, especially since a large percentage of businesses are impacted by supply chain and logistics. I’m definitely looking forward to following this project.
The information provided in this article does not constitute investment advice, financial advice, trading advice or any other sort of advice.
Written By: Phil Siarri
Phil Siarri is an innovation management professional and fintech observer. He has been selected as one of Canada’s top 40 social influencers in finance, innovation and risk by Thomson Reuters, as well as top 50 fintech influencers in Montreal by FinFusion.