VeChain Partners with Chinese Car Manufacturer BYD
In a surprise statement, VeChain has announced that they are partnering with BYD Auto Co, Ltd. BYD has said that VechainThor will be used for their new carbon banking model.
The model will make it so that every car produced by BYD will have its carbon emissions data stored on the blockchain. The process will be monitored by DNV GL which is an internationally accredited registrar and classification firm based in Norway.
A Step Towards Real-World Adoption
BYD is based in Xi’an in the Shaanxi Province of China. Currently, the company is valued at $3 billion and is the best-selling producer of electric cars.
They also produce other energy-efficiency vehicles, forklifts, and energy storage systems. Their green energy solution works well with VeChain’s goals, as per the statement, and they plan on cultivating a long-term relationship.
According to the announcement, the use of VeChain will allow the recording of “the data of millions of cars, buses, trains, and other vehicles onto a public blockchain platform.”
The move represents a huge step for VeChain which has seen partnership after partnership in the last few months with major companies.
What makes this different however is that BYD is not just a partnership – they will be directly using VechainThor blockchain to monitor data. It is an example of real-world adoption as opposed to speculation and just partnerships.
Could The Real “Word Blockchain” Please Stand Up?
Interestingly enough, BYD’s official Twitter account took note of the developments in the crypto space and sent out a tweet earlier today mocking Ethereum for its lack of real-world use cases.
Tweeting directly to Vitalik Buterin, they mocked him for stating that crypto needed to “achieve something meaningful for society” since according to BYD, Ethereum, as of now, has no real-world use cases.
@VitalikButerin you once said, "Need to differentiate between getting hundreds of billions of $ of digital paper wealth sloshing around & actually achieving something meaningful for society"
This is the real world application for blockchain we've all been waiting for.
— BYD (@BYDCompany) September 6, 2018
Green Energy Future
This move represents a major decision on part of VeChain to put its tested product to use. On top of this, the partnership with DNV GL means that the entire process will be closely monitored by a regulated firm which specializes in data analysis. Overall, all three companies – VeChain, DNV GL, and BYD – all have a green energy future in mind as their goal.
Paving The Way For Other Projects
BYD’s carbon banking model is expected to work something like this: the more carbon emissions saved, one is rewarded with certain points. This will grant certain benefits yet to be determined.
Yet, what’s more exciting is that the data collected and stored on VechainThor will be used to assess carbon efficiency rates. In the long run, this data will prove useful in building new and improved energy-efficient vehicles.
In a market that has been rattled with bearish sentiments since earlier this year, adoption comes as a real breath of fresh air. Hopefully, this move will usher the beginning for other projects to differentiate themselves beyond just speculative value and towards real-world use cases.