VeChain Thor Public Blockchain: the promise, extent, and possibilities
The retail
industry has for decades faced a problem with counterfeiting. Not only do fake
goods steal them from their earnings, but they’re also often of lower quality,
giving users an experience that’s not on brand with the companies. This, in
turn, gives them a poor image, thus harming them in all possible ways.
While many
attempts have been made to curb counterfeiting, most of them happen at a retail
level, leaving customers to trust whoever is selling them goods.
Until now,
there has never been a way for a customer to be 100% sure they’re purchasing
legit items other than authorized retailers.
VeChain aims to
fix this.
A blockchain for supply chains
The blockchain
immutable ledgers can be used for hundreds of things, as the recent boom in
projects has shown.
One of the most creative, yet undeniably useful ideas,
comes precisely from VeChain. This particular blockchain attempts to keep track
of products from the moment they are made until they reach your hands. In other
words, it’ll allow you to be 100% sure of a product’s origins and where it has
been.
More
importantly, all of these features will also be available to brands and
manufacturers, allowing them to check where their products are at any time.
How does it work?
The VeChainblockchain essentially abstracts goods and created smart contracts to symbolize
their transport. So when products are moved from one place to another as part
of the supply chain, the smart contract is executed to symbolize this.
This would be
entirely useless on its own, since it would mean putting a bunch of numbers in
a ledger with no governability whatsoever. However, there are two details that
make VeChain work.
First, items in inventory will be directly linked to their
store counterparts – that is, along with its barcode or QR code, every item
will ship with a unique code that will be tied to an item’s whole supply chain.
Even when it
might sound silly, this is very important because this feature allows retailers
to make sure what they’re receiving is legit.
When a product is shipped to
them, the specific code of each of the items in the lot should appear as sent
to their store or area in the blockchain – and if this is not the case, the
product is likely to be counterfeit or stole.
The other detail
that makes the chain work is how it doesn’t allow just anyone to process or
authenticate transactions in it.
To avoid having bad actors, the VeChain instead uses a handful of authorized nodes for authentication, these nodes being run by organizations that participate in it.
Therefore, nodes are considered trustable as a whole and attacks would be difficult, if not impossible, to perform.
To avoid having bad actors, the VeChain instead uses a handful of authorized nodes for authentication, these nodes being run by organizations that participate in it.
Therefore, nodes are considered trustable as a whole and attacks would be difficult, if not impossible, to perform.
How does the cryptocurrency
work?
First, the main
thing: You can’t mine or stake crypto on VeChain. You can, however, purchase
and hold it if you wish.
Yet even holding
crypto here won’t make sense in many cases. VeChain Thor has two separate
cryptocurrencies, those being VET and THOR. The thing is, VET tokens produce
THOR tokens – thus making holding THOR tokens impractical.
On top of that, THOR tokens can only be used to pay for transactions among smart contracts in the blockchain, making them useless for individuals.
On top of that, THOR tokens can only be used to pay for transactions among smart contracts in the blockchain, making them useless for individuals.
Of course, one
could hold a lot of VET and sell the THOR it produces to companies that might
need it – but whether this will ever be a profitable enterprise is yet unknown.
VeChain hopes the tokens will remain stable, meaning the chances of such a venture growing profitable are slim to note.
VeChain hopes the tokens will remain stable, meaning the chances of such a venture growing profitable are slim to note.
Is it a good blockchain? Does
it have a future?
VeChain is one
of the most specialized blockchains out there. The fact that individuals can’t
really invest in it in a way that makes sense is a design choice, and one made
with the aim of separating VeChain from the cryptocurrency craze.
So far, VeChain
hasn’t changed the way supply chains work, but adoption has been slowly
growing. As more areas of the economy open themselves up for blockchain as a
technology, it’s likely more supply chains will start using VeChain, making the
likelihood that this project will succeed rather decent.
Of course, that
doesn’t mean you should invest in it. It’s likely to succeed, but it has also
been designed with the specific intent of keeping blockchain investors out, so
hold these tokens at your own risk.
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