VeChain is a Blockchain-as-a-Service company with a mission to build “a trust-free and distributed business ecosystem to enable transparent information flow, efficient collaboration, and high speed value transferring.”
The project has been around for over two years and already has customers using a working product – still a rarity in crypto these days. Several industries including luxury goods, agriculture, logistics, food/drug, and governments are already using VeChain blockchain technology.
VeChain does a lot. Using the technology, you can track items through a supply chain, ensure the authenticity and quality of goods, as well as maintain the quality control of food products.
In this overview, we’re going to take a high-level approach covering:How Does VeChain Work?
VeChain began primarily as a blockchain supply chain company but has since evolved into a full-fledged DApp platform (more on this later).Supply Chain Trust
VeChain uses a mix of blockchain technology and their in-house built smart chip to track items throughout their lifecycle. The smart chip can be implemented in different IoT items such as NFC chips, RFID trackers, or QR codes.
Although this may not seem like the most interesting technology, it serves an important role in ensuring product quality across industries. Let’s look at the luxury goods sector as just one example.
The luxury goods industry is wrought with counterfeit items – over $450 billion worth. With an item like a Louis Vuitton purse changing hands several times during production and distribution, you need to trust that the person before you is passing along something authentic.
Traditional Supply Chain
VeChain, like other blockchain companies, removes the need for this trust. At every step of the process, you can scan the smart chip on each item to guarantee you’re receiving what you should be. Because the blockchain is an immutable ledger...