VeChain (VET), A Network Designed To Revolutionize Supply Chain Management

The 2021 crypto bull market has attracted many “moon boys” looking for the next project for riding the bulls but the smart investors are those seeking long-term growth opportunities. Projects that have a unique approach to the market, especially those that will improve specific sectors can deliver robust growth and VeChain happens to be in that category.

VeChain is a blockchain-based service solution designed to provide supply chain solutions to enterprise customers. It started as an Ethereum blockchain-based project that was launched in 2017 but it now has its own native blockchain known as VeChainThor. It aims to provide the necessary solution that companies need to secure their supply chains.

Why is VeChain an excellent solution?

Problems are precursors to solutions and in this case, VeChain is taunted as the best solution available for corporate supply chains. To put it into perspective, the food supply chains are highly essential but they are often plagued with counterfeit products which may cause dire ramifications. For example, substandard counterfeit products may cause poisoning, thus ruining the original brand’s reputation. Similar problems plague other types of supply chains beyond food.

Imagine if there was a solution that could provide an electronic method of verifying the source of products and keeping track of their supply chains to prevent counterfeits. This is the type of solution that VeChain wants to offer and there is no doubt that there is a lot of demand for such a solution.

How does it work?

Products will be labeled with a verifiable code like a QR code or an RFID code right from the source, for example at a farm. The products can be scanned at every supply chain stage and important information will be added, such as temperature, storage conditions, and more. This scanning and verification can also be done by the end consumer, making it easy for people to verify the source and authenticity of whatever they purchase. This is just one of the many uses of the VeChain solutions for the supply chain industry.

What will mass adoption do for the network?

VeChain has two native tokens, VET and VTHO. The former is used for value transfer by powering the nodes on the Vechain blockchain. There are 84 billion VET tokens in existence and just over 64 billion of them are in supply. There are authority nodes used to validate all transactions while economic and X nodes are designed to encourage more people to participate in the community.

Demand for running the nodes on VeChain means there is demand for the limited supply of VET which could push up the token’s value. VET is currently trading at $0.11 which means it is still trading at a relatively low-cost entry point.

Vechain VET
Source: Binance.com

The demand for VeChain solutions will likely fuel a rally for the VET token in the future. VTHO has even more growth potential especially if there will be a high demand for Dapps on the VeChainThor network. Those Dapps and associated transactions require VTHO as payment, and it is this utility that will contribute greatly to the token’s growth as demand for the network continues to grow.

VET holders can stake their tokens on the VeChain network to earn rewards in the form of VTHO. The success of the network will depend on its ability to attract more adoption and investment. One of the most notable partnerships that the network has secured so far is a collaboration with a Norwegian company called DNV for an infection risk management solution designed to facilitate health compliance through VeChain. The partnership highlights VeChain’s ability to rapidly develop real-world solutions for the market.

Changing the way supply chain management works is no easy task and it will take time for the VeChain network to really take off and become mainstream. However, it is on the right path and its potential is limitless, making it a good project that is still in its early days.