The VeChain Platform
VeChain (VEN) is a cryptocurrency platform founded by Sunny Lu in 2015, and its development team is based in Singapore. In 2017, the coin’s price skyrocketed from 5 cents to a peak of $10 (CoinMarketCap). During this time, the crypto world was in a frenzy and Bitcoin hit an all-time high of nearly $20,000. Since the end of 2017, the price of cryptos has generally declined, and currently each VEN is worth about $2.66.
Since there are 478 million coins in circulation, this equates to a market cap of approximately $1.64 billion at the time of this writing. This makes VeChain the 17th largest crypto-platform in terms of market capitalization. Considering that there are thousands of different cryptos, this indicates that this crypto-platform is one of the most valuable and popular crypto-platforms. It is, therefore, important to understand the characteristics and qualities of this platform, if you are a crypto enthusiast, investor, and/or trader. After all, what exactly is it about this platform that has led to such a large market share?
VeChain’s Architecture & Implementation Details
VeChain is powered by a network of nodes scattered across the globe. Those who are running the nodes receive VEN as a reward for securing and maintaining the blockchain. The primary goal of thiscrypto-platform is to provide a platform for digital authentication of real-life products, such as food, medicine, liquor, cars, agricultural supplies, etc.
When a product is first created in a factory, it is labeled with a VeChain Identity (VID). The VID is created using the SHA-256 algorithm, which turns the string of text associated with the VID into a 32 byte cryptographic hash, and inserted into a Near Field Communication (NFC) tag, Quick Response (QR) code, or Radio Frequency Identification (RFID) tag. This way, the product can be tracked every step of the way, from the factory to the end user, simply by scanning the VID with the VeChain app.
Reliable & Immutable Data Storage
Data about the condition and location of the product can be entered whenever it is scanned. This information is stored permanently on the VeChain blockchain, so it can never be altered. This is perhaps the first truly decentralized way to track the authenticity of goods, according to the platform’s developers. Its designers also claim that it is a legitimate system for preventing fraud via mislabeling or misrepresenting products at the time of sale.
Centralized systems for tracking authenticity of goods can be manipulated by those running the service or hackers. With VeChain, its creators assert that it is simply not possible for this to occur since it is secured through sophisticated cryptographic algorithms. Therefore, consumers will have the satisfaction that they are purchasing authentic products and not getting ripped off, once they scan the VID. Furthermore, businesses can boost their profits and run more efficiently when using VeChain, since it claims to protect them from fraudsters.
Built-In Support For Smart Contracts
VeChain’s protocol supports smart contracts, allowing digital assets to be linked to a VeChain account. Users are required to pay some VEN in order to execute smart contracts, directly connecting the coin’s value to activity on the network. Several major companies have partnered with VeChain to accelerate its adoption globally, including PWC, DNV.GL, Groupe Renault, Kuehne+Nagel, China Unicom, D.I.G., BitOcean, MLILY, Sunshine Culture, Fanghuwang, Printed Electronics, XMiNNOV, madeforgoods, NRCC, Yida Future, and Michigan State University.
VEN has intrinsic value due to the innovative design of VeChain’s decentralized product authentication system, and I expect its market value to rise in the long-term as more businesses implement this powerful new technology. However, this should not imply or suggest in any way that I am offering any investment advice, or trying to influence any investment-related decisions. It’s always best to do your own research, and invest responsibly.
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