At its core, VeChain is an Internet of Things (IoT) company that wants to revolutionise the supply chain. Its specific focus is on guaranteeing product authenticity and quality, helping brands in their crusade against global counterfeiting.
The central idea is that if blockchain is used to track the entire supply chain and lifecycle of a product, then retailers, manufacturers, and customers can all be certain that what they are buying is authentic.
However, tracking the supply chain is only half of the strategy. Products are also fitted with radio-frequency identification (RFID) tags that can be scanned by mobile phones to validate product genuineness at the point of sale. If the tag is damaged or removed, the blockchain deems the product faulty.
Why is authenticity so important?
Independent wine commentator Jeremy Oliver estimates up to 50% of wines costing $35+ per bottle sold in China are fake in some way. It could be a fake label, a refilled bottle, or a copycat brand.
While projects such as WaBi are focusing on the authenticity of baby food and medicines, VeChain is zeroing in on the integrity of luxury items, wines, and automotive parts. Its technology can theoretically be attached to any product, so it is not actually limited to these fields.
VeChain Clients & Partnerships
VeChain has amassed a very impressive body of clients and partnerships in a short time.
Direct Imported Goods (DIG), China’s largest importer of fine wines, has already placed one million bottles of wine on VeChain’s blockchain to address huge concerns over fake wine in the country.
VeChain is also involved with Renault in automotive supply chain management to ensure that all parts are genuine, safety-compliant, and custom-designed for Renault vehicles.
On May 15, 2017 came the announcement that PwC would partner with VeChain to accelerate the use of blockchain in Hong Kong and South East Asia.
Raymund Chao, chairman of PwC Greater China, commented as follows:
“We are excited about the joint initiative between PwC and VeChain and the services we provide that could help our clients achieve greater success. I envisage our services will create an impact and deliver on our firm’s purpose of building trust in society and solve important problems.”
VeChain’s Future Scope
A report commissioned by the International Chamber of Commerce states that the global counterfeiting market could reach $2.3 trillion by 2022. When you consider this figure, you begin to understand the magnitude of the commercial problem that VeChain is helping to solve. The company has a working product, a strong team, and multinational clients. VeChain is one of a group of very impressive IoT projects, along with Walton, WaBi and IOTA, and these are all projects firing up the crypto market cap indexes.
At the time of writing VeChain has a market cap of $1.5 billion and a token price of $5.51. You can buy VEN on Binance, Huobi, HitBTC and Liqui (it is not available on Bittrex as of now) and store it in your MyEtherWallet (MEW) wallet, where it is listed as VET.