As the crypto market attempts to recover from the speculation bubble that fueled it in 2017 and early 2018, VeChain continues to excel by adding partners and real-world use cases. From partnerships with BMW, the wine industry and even the Chinese government, this is how VeChain (VET) is taking over the world one step at a time.
Keeping the World Honest
VeChain was born out of the need to solve a rampant problem faced by hundreds of companies worldwide – counterfeiting.
When it comes to forgeries, luxury brands are the ones who get hit the hardest. So it is quite fitting that VeChain was created by the former Asian division chief information officer at Louis Vuitton – Sunny Lu.
He was witness to the rampant toll fakes can take on a brand first hand. It is estimated that the $170 billion USD powerhouse Louis Vuitton loses hundreds of millions in diminished brand value and about $4.6 billion USD in sales each year due to forgeries and counterfeiting.
Having been part of the luxury brand industry, he took his team and knowledge and decided to tackle the global counterfeiting market head-on in 2015 with a goal to craft a solution that is already gaining tremendous traction.
VeChain was born.
Here is a simple overview of how VeChain works:
- VeChain provides companies with chips/QR codes. Each chip/QR code has its own unique ID.
- The companies attach the chips to their product. As soon as the code is scanned it is stored on the blockchain.
- The product can now be tracked through each phase of its life cycle.
- It is an easy to use, low-cost solution for product authentication. The blockchain is tamper-proof by nature so companies know for a fact if the products they receive or send are authentic or not.
Smart Money is Betting On VeChain
Jim Breyer is one of the TOP venture capitalists in the world. He believed in many projects before they became huge companies today. He was an early investor in Facebook as well as Ethereum and has a keen eye for innovative companies. Out of all the promising cryptos in China, he is backing Vechain.
This shows how VeChain is leaps and bounds beyond almost all crypto projects right now. Jim Breyer invested in VeChain because he knows more about it than most. Breyer Capital is acting in the official advisory role for VeChain.
Based on Breyer Capital’s portfolio Jim Breyer is already 10 chess moves ahead. In addition, VeChain is backed by an elite cast of heavy-hitting players including PwC, Fenbushi Capital, and Bo Shen are just a few of the high-profile names attached to the insider base of this project.
BMW, BYD, and VeChain
While the German car manufacturing giant BMW is a household name for most and one of the most known of the many VeChain partnerships, BYD should be there right there on that same list.
If the BYD name doesn’t ring a bell, it should.
The company is a Chinese car manufacturer. But not just any car manufacturer. It is a Warren Buffett-backed, $27 billion valued car company. The one that’s bigger than Tesla.
And VeChain is now its partner in a government-backed program to track electric vehicle use.
VeChain announced a partnership with one of the world’s largest insurers and holders of $120 billion in assets – The People’s Insurance Company of China (PICC);
The goal; utilize blockchain technology to transform the insurance agency by creating faster data transfers, immutable record keeping and more. This is a sector where VeChain can really shine.
It’s no secret that China is the global leader in blockchain patents. In fact, many of its cities and government agencies are already leveraging blockchain technology. For example, the people of Guangzhou can now receive their tax invoices on the blockchain. Additionally, the city of Nanjing has launched their own blockchain investment fund currently valued at $1.5 billion USD. It is expected that by 2020, most of the countries government services will run on the blockchain. As you can see, the infrastructure is there for any blockchain company that gains an early headstart in China.
Companies Are Using VeChain’s Technology Right Now
VeChain has been in development since 2015: Essentially, it records large-scale logistics for enterprises on its blockchain-based ledger. While VeChain’s primary focus is anti-counterfeiting, the company has seen its blockchains ideas branch out to automobiles, luxury goods, insurance, and more.
A good example is fake food and beverages which is a major problem in China. Specifically, wine importing. Fake imported wine is on the rampage with more than 30,000 bottles sold by the hour. Additionally, it has been reported that the average bottle of Champagne has been refilled with imitation champagne seven times.
This is where VeChain can step in.
VeChain has created a seal that stops wine counterfeiters in their tracks. By simply scanning a QR code with an app, the customer can see its entire life cycle. This prevents fake wine being passed off as the real thing.
It cannot be tampered with. If someone attempted to copy the stickers on the bottle the blockchain record would reveal that the wine has already been sold.
A very cool and effective use of blockchain technology to say the least.
Shanghai—China’s most populous city—has taken a big step towards protecting their 30 million residents from vaccine fraud. VeChain has been tasked with protecting the health of millions of people by partnering with Shanghai’s city officials to secure their entire vaccine supply chain.
Similarly to the solution, VeChain has been utilizing for wine bottles, the government will be able to monitor vaccine vials throughout the supply chain via a small embedded microchip.
Each vial has its own unique ID and can be monitored for changes in temperature levels, cold chain distribution, and even hospital usage. As expected, it covers complete product history.
Governments and Corporations
When it comes to partnerships both governments and corporations are flocking to VeChain:
One thing is for sure, VeChain is much more than a Supply Chain and Logistics solution. VeChain is offering solutions that the corporate world has been grappling with for years. The use-cases are just too astronomical to ignore. VeChains partnerships span continents, corporations, and even governments and this is just the beginning.