A Detailed Overview of VeChain Blockchain
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Every business strives to maintain uniqueness or oneness in its product line as it helps build brand value. Imagine you are the owner of a thriving business that sells handbags. What if you see a retailer selling some of your handbags in the market next to your showroom but with a different brand name and at a cheaper price. How did that retailer get his hands on your products? It can be an act of product laundering, indicating flaws in your supply chain management. How can you ensure that your products don’t get subjected to any laundering or being accessed by fraud buyers? Ensuring this is important to preserve the value of your brand and products.
To help businesses overcome such situations of product fraud, the VeChain blockchain eliminates the flaws in supply chain mismanagement. VeChain ensures a smooth flow of information with no barriers, which can solve many big economic world problems. Big brands like BMW and Walmart use VeChain to track and authenticate their supply of materials and goods that transit worldwide with many different stops before reaching the customer. With increasing use cases, VeChain continues to grow & expand.
VeChain encourages enterprises to move their business network to the distributed network to view their business processes and supply system. It allows businesses to build blockchain solutions on the VeChain ecosystem by providing essential tools and resources. Though open-source blockchain protocols also allow enterprises to build blockchain-based supply chain solutions, their features contradict the idea of complete decentralization. Like, Ethereum has a mining pool that occupies the biggest share of hash power, and it also has wallets that hold a significant amount of total tokens. These components, to some extent, resonate with the concept of centralization.
VeChain addresses these limitations by applying the tribology of consensus-technical consensus, business consensus, and governance consensus. Let’s discover more about VeChain and its technology in this insight.
- What is VeChain?
- What problems does VeChain solve?
- Why is VeChain unique?
- How does VeChain work?
- What VeChain development services does LeewayHertz offer?
What is VeChain?
VeChain is an enterprise-oriented blockchain designed to enhance supply chain management and automate the process involved in the system. VeChain, built on the top of a public blockchain VechainThor, intends to solve real-world economic problems by deriving value from the associated members’ contributions.
Sunny Lu laid out the VeChain project in 2015, and the platform has evolved rapidly to become one of the leading blockchains assisting worldwide businesses. It allows them to boost their supply chain operations and leverage the properties of VeChain to build and use decentralized applications.
VeChain was initially built on the Ethereum blockchain, and it later deployed its separate ecosystem, the VeChainThor blockchain. Compared to other smart contract-capable blockchains, VeChainThor is more efficient and consumes less energy using its master node-based consensus.
Even though VeChain reduces the energy cost and simultaneously boosts the efficiency of blockchain-powered solutions, VeChain never compromises security and offers a risk-free network to everyone.
What problems does VeChain solve?
VeChain addresses the prevailing challenges of enterprise-grade blockchains. The platform has evolved from various iterations to provide users with a trustless and distributed business ecosystem with capabilities like the transparent flow of information and high-speed value transfer.
- VeChain leverages IoT and blockchain technology to support the development of logistics industry solutions. The devices (to exchange information) are still connected in old methods like RFID, and these devices send the collected data to the VeChain blockchain to secure and validate them via nodes.
- VeChain creates a balance between centralization and decentralization to power real-world use cases of blockchain in the supply chain, logistics, and Saas industries.
- From the development point of view, VeChain offers meta-transaction features, developer’s resources, technical support, and various ingenious tools that make development easy and cost-effective for enterprises and startups.
- VeChain ecosystem brings transparency in information exchange that reveals the actual value and thus reduces the potential trust cost to make business operations more efficient and less expensive.
Why is VeChain unique?
VeChain provides holistic solutions to enterprises looking to improve their business operations and develop innovative supply chain management methods.
While almost every blockchain supports the development of supply chain solutions, you might get questions like what makes VeChain unique or how VeChain differs from other blockchains. Let’s explore the unique features that make VeChain attractive:
VeChain ecosystem adopts a dual-token economy consisting of VeChain Token (VET) and VeChainThor energy (VTHO). Both these tokens together empower the economic infrastructure of VeChain.
The network uses VET as a medium of exchange, just like other blockchains use their native currency. At the same time, it uses VTHO as fuel to facilitate the transaction or pay for the transactions. VHTO essentially functions to eliminate the extreme volatility issues in VET because only VET is used for exchange purposes.
VET is considered smart money since it’s programmable on the VeChain THorcahin and can be integrated into the smart contract to continue value transferring and other trade-related activities within the network.
Fee Delegation protocol
VeChain attracts many companies with its unique fee delegation protocol. VeChain uses smart contracts and users’ gas accounts to manage the gas usage required to handle the network.
It means a company can utilize the services and tools available on the VeChain platform and can pay for the data they use. This feature unlocks the benefits of public blockchain for users even though they no longer need to manage their expenses themselves.
VeChain offers a complete suite of turnkey software and hardware solutions to help enterprises launch their project at a minimal cost. With a team of professional blockchain developers, security specialists and smart contract developers, they can develop and deploy blockchain solutions and launch their projects at a minimal cost.
How does VeChain work?
VeChain employs the PoA (proof of authority) consensus model to enable high-speed and secure transactions. The platform leverages a network of 101 authority Masternode operators.
Masternodes operators are required to verify their identity by qualifying KYC steps. They are accountable for executing smart contract operations, validating the data, and maintaining the governance policy of VeChain.
- Authority master node operators abide by the unique governance policy of the VeChain ecosystem and seek ways to grow the ecosystem. With PoA, the platform already resolves the common blockchain issues such as inefficient upgrades and energy wastage.
- VeChain ecosystem requires low computation power to achieve consensus integrity and network security.
- Activities on the network are controlled via built-in smart contracts. Hard forks should be avoided if the authority master node fails to upgrade.
What VeChain development services does LeewayHertz offer?
LeewayHertz offers end-to-end blockchain development services to startups and enterprises. Our developers explore the development possibilities in the VeChain ecosystem to develop highly scalable supply chain solutions for businesses. Following are some of our development services:-
Supply chain solution
We help Non-blockchain savvy enterprises to build their decentralized supply chain solution from scratch. Moreover, we can migrate their existing solutions to the VeChain.
Our team leverages the benefits of VeChain to develop private and mass-market decentralized applications (dApps). We gather thorough knowledge about your industry domain, create a technical roadmap for the project, and allow you to review it before execution.
We identify the supply chain business logic to be migrated to VeChain smart contracts. Our self-executing smart contracts written automate your business processes and bring trust & transparency to transactions.
Using the tools, technical documentation, and resources offered by VeChain, we develop Andriod and iOS compatible VeChainThor wallets for effective and secure management of funds required to do transactions over the VeChain network.
We offer NFT marketplace development on VeChain, tokenization of assets, integration of an existing NFT on the marketplace, and the development of futuristic NFT projects such as 3D gaming and Metaverse.
VeChain has accomplished various goals since its advent in 2016, including the launch of its main net, the introduction of VET tokens, the VeVote platform, and the launch of solutions for industries like food & safety, supply chain, automobile, retail, NFTs, and agriculture. As the next major upgrades, the platform has implemented the second iteration of PoA (proof of authority) consensus and the deployment of the decentralized voting platform, VeVote.
With these constant upgrades, VeChain now identifies itself as a leading blockchain that can resolve the issues of most enterprise-grade blockchains. The network has a well-defined technical roadmap to follow for future development and advancement of the VeChainThor Blockchain ecosystem.
If you want to build blockchain solutions on VeChain, feel free to collaborate with us. Please connect with our blockchain experts to discuss your project requirements.
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