The sale of counterfeit products on the internet or the fraud during the transport of products are major problems that cost organizations a lot of money. VeChain or VeChain Thor (VET) will change this by offering help in the supply chain. They will do this by recording the authentication of goods on the blockchain. This allows both companies and consumers to check where their products come from and what they are made of. But how does VeChain do this exactly?
VeChain is a blockchain project that will facilitate the authentication of goods in the supply chain. It was established in 2015 by Sunny Lu. He worked at Louis Vuitton and saw how much the company had to do with counterfeit products. This not only cost the company money because fewer real products were sold, but it was also enormously bad for the name of the company. It is estimated that selling fake items on the internet costs companies selling luxury goods around 30 billion a year.
Sunny Lu saw how big this problem was and took action in the form of VeChain Thor. With this blockchain project he wants to combat these problems by adding a unique QR code or chip to all products. On these chips or codes, the unique information of the relevant product is then assigned to the blockchain. And the unique feature of the blockchain is that this information can no longer be changed. Both companies and consumers can check whether they are dealing with fake products, but also where it comes from and what it is made of.
VeChain coin
Two different coins are used on the VeChain Thor network, just like with NEO. The coins on the VeChain network are the VeChain coin or VET coin and the VTHO token. The VeChain coin is the coin of the platform itself and the VTHO token is the coin used for rewarding on the network. VeChain works similar to Proof or Stake. This means that by saving VET coin in the correct wallet you can earn VTHO token. So you can use your VeChain coin to earn a little passive income in the form of VeThor Token (VTHO).
Usercase VeChain
This application of the VeChain blockchain has multiple use cases that can offer a huge addition to both retailers and consumers.
Louis Vuitton VeChain
One of the ways in which VeChain can be used is with luxury goods. The origin of the product, the material used and the authenticity can be registered on the blockchain. Then a retailer or consumer does not trust the product? Then it is easy to check whether it is a counterfeit. This will not make it any easier for people who have an evil intention to trade in fake articles.
Wine trade
Another use case for VeChain is the wine trade. A bottle from the supermarket is usually easy to trust. But of course you can never know for sure whether it actually comes from a certain vineyard or is made in a certain region. This is of course true for the more expensive wines. With VeChain a chip on the wine bottle can be used to check where the wine was made, which grapes were used for this and when it left the stock to be shipped.
For the more expensive bottles of wine, a chip can be placed near the opening. When the wine is opened before it is sold, the chip will register this and the buyer will know this. This can greatly influence the price and taste of the wine and must therefore be avoided. With VeChain, all this data is on the blockchain and is therefore easy to check.
Cold Chain logistics
VeChain can also be used during the transport of refrigerated items. It is important that these items are always stored below or above a certain temperature. Does this not happen? Then this can result in illness. It is now difficult to check, because nobody keeps track of whether a product has been left out of the refrigerator for too long. The supply chain is simply too large for that. With VeChain and its chips, the temperature can always be monitored and does it go wrong? This is then placed directly on the blockchain without anyone being able to do anything about it. It can also be checked in this way where improvement may be needed within the supply chain, so that it can be prevented.
Cars and VeChain
The above technology with the chips and QR codes can also be applied in the car market. In recent years, a lot of cheating has come to light with fuel consumption and mileage. With VeChain, this type of data can be automatically collected on the blockchain, preventing this tampering. This ensures that the defects are always known for every car and that, for example, the mileage cannot be reversed.
VeChain Carbon Platform
With VeChain it is also possible to keep track of emissions from, for example, cars. They indicate that they want to combine this with store loyalty programs in the future. You can then earn points by ejecting less. It is all fairly kept up-to-date on the blockchain and when used on a large scale it can contribute to a greener world.
VeChain partners
VeChain is making good progress with regard to VeChain partners. For example, they mention that they collaborate with companies such as PriceWaterhouseCoopers (PwC), BMW and the Chinese government. One partnership is more active than the other, but the fact remains that they have managed to hold on to many big names.
VeChain course
It is always difficult to predict rates. If we look at the use cases of VeChain this can turn out well in terms of the VeChain course. A number of large partnerships have already been concluded and the potential is high. You can imagine that companies will benefit from preventing counterfeit products and loss during the supply chain. But in the meantime, it can take a long time before the applications are used in the real world and in what form. It is therefore difficult to predict the VeChain course. Personally I would not be surprised if Vechain can reach within 5 years (2024) a price between $0,5 and $1.
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