How VeChain Works
When talking about blockchain technology, most people talk about cryptocurrencies, decentralized bonds and a revolution in the financial area in general, although they are not wrong, they are leaving out other fields with great potential, How VeChain Works.
Among them we have the logistics and the international agreement, according to the world trade organization, only in 2019 goods were traded for an all out of 19 trillion dollars.
This is a gigantic worldwide market that largely still uses traditional technologies and still has a lot of friction, anyone who works in import and export companies will know this to be the case.
Some blockchain projects have taken on the task of transforming that industry and one of the most successful networks so far is VeChain.
In the same way that feed companies that offer programming as a service or platforms as a service also feed companies that specialize in offering blockchain as a service and VeChain is one of them.
What VeChain offers
VeChain technology, in addition to offering an improvement in the management of administrative processes to order and make more efficient the work of managing supply chains such as food, transportation of raw materials and medicines, also offers a BlockChain infrastructure for people with a business requirement or management.
The thought is to enable automation of many processes, integrating web of things technologies, but VeChain also seeks to integrate information on the products themselves through electronic tags, such as Qi codes, to allow detailed and genuine time tracking of the supply chain process.
thanks to its incredible differences with respect to other systems, such as securing in a blockchain warehouse and thus securing all the information in such a way that it cannot be changed or modified, avoiding counterfeiting.
History of VeChain
VeChain was founded by electronics engineer Sunny Lu, who worked as chief technology officer in China and also has 20 years of experience working with supply chain infrastructure technologies.
In 2015 Lu decided to found VeChain and in 2017 the company's initial coin offering would take place, which is nothing more than the launch of their token, to raise funding, thanks to the launch of VET the VeChain token, they managed to raise about $20 million.
VeChain is a double ecosystem and has 2 tokens VET and VTHO, both serve different functions.
- VET: acts as a boldness carrier and is used to make transfers within the platform, as well as being necessary for marking.
- VTHO: It is important to mention that this is a token that works as a trading currency to carry out smart contracts and if you want to transfer information and make transactions and it should be noted that in its block system you must make payments through VTHO.
Some of the ways to get VTHO is by doing VET marking as a reward, it would be as a kind of interest to secure the network. As mentioned, VeChain's specialty is supply chain management and to achieve this VeChain combines blockchain technology, with other kinds of technologies used in logistics and distribution.
An introduction to how VeChain works
VeChain is a blockchain platform established in 2015 with the aim of providing more fruitful cooperation for the blockchain industry. This blockchain uses smart contracts to automate and protect its users and operators. This guide will tell you how VeChain works, uses and how it differs from other blockchains.
A little history of VeChain
VeChain was created by Sunny Lu, a software expert who was previously CTO of Louis Vuitton China. He founded the project in 2015 with the idea of creating a communication platform between companies and end users to reduce friction in the supply chain and production chain. Since then, it has relied on the Ethereum blockchain, a software platform that allows the creation of decentralized, intelligent and secure applications.
How VeChain works
VeChain operates through the Ethereum blockchain, which enables the creation of smart contracts, decentralized applications and risk management. These can control the movement of data within the chain, detect on-chain fraud, and generally optimize the flow of data: smart contracts, like many in Ethereum, can provide security and trust between users, and these contracts are also verified. various "accounts" of VeChain nodes.
How VeChain is used
VeChain can be used to track and trace the supply chain, especially for the food industry. This allows governments and companies to monitor food from its point of origin to its final destination in order to detect illegal transport or inappropriate behavior perceived by governments. In addition to this, VeChain can also be used to keep track of all information related to product production.
VeChain can also be used to perform audits and optimize security processes, as well as to improve maintenance and control. This reduces the time between when the product leaves the factory and when it reaches the consumer, allowing manufacturers to make a bigger profit.
VeChain also made it possible to hear about precious metals. This ensures that metal fabricators are of the highest quality and that the industry complies with applicable environmental laws. It also helps prevent financial fraud and theft of valuables.
advantages of using VeChain
There are several reasons why users and businesses can benefit from using VeChain. These include reduced fraud and improved communication between suppliers, improvements in supply chain management, warranties, better data verification, more greater efficiency in production, more transparent audits and an overall improvement in safety and reliability.
Moreover, VeChain is also useful for improving the transparency of food safety companies. This means food can be traced from its point of origin to its destination, helping governments and businesses comply with applicable laws and regulations.
Another great use of VeChain is for security. By using a blockchain, all data is stored in a distributed database and cannot be modified, which is the best solution for securing information. The fact that the VeChain platform is built on top of the Ethereum blockchain significantly reduces the risk of fraud, compared to using a centralized application.
Conclusions on how VeChain works
VeChain is a creative and versatile blockchain platform that provides tools to perform audits, reduce the risk of theft, and improve supply chain and production efficiency. By using the Ethereum blockchain, VeChain can also provide a higher level of security for stored data. Other tribunal tools allow you to improve the quality of audit processes, prevent financial fraud, and improve transportation rates. All of this is accomplished without the sacrifice of multi-party support. In this way, VeChain offers security, efficiency and transparency to the blockchain industry.