During the China’s International Import Expo (CIIE) 2019, President Xi Jinping of China and President Emmanuel Macron of France witnessed the future of blockchain logistics through the sampling of premium products delivered and verified using a Blockchain Ecosystem.
According to DNVGL, this innovative B2B blockchain solution for F&B products will allow Chinese buyers and consumers faster access to French premium products with the assurance of product authenticity, quality and safety.
And while the solution was jointly developed by the 3 partners DNV GL, VeChain and ASI Group, VeChain is the technology enabler which helped create this blockchain logistics food tracker – called FoodGates.
This vote of confidence from the 2 presidents fuelled VeChain’s token price over 100% in just a matter of weeks.
With that in mind, we want to dig deeper into VeChain and whether it still has room to grow. But first, let us understand more about VeChain.
Started in June 2015, VeChain is an enterprise-focused blockchain platform which focuses on business applications related to supply chain management including quality control, inventory, and tracking. It now has international offices in Singapore, Luxembourg, Tokyo, Shanghai, Paris, Hong Kong, and San Francisco.
In layman terms, VeChain enables manufacturers to assign products with unique identifiers on the platform, thereby allowing participants to track the movement and provenance of products in a supply chain.
For some perspective, the FoodGates blockchain platform can track the full lifecycle of a cow from the selection process to slaughtering, packing, cross-continental shipping all the way to restaurants for beef products.
And all of this is powered by the VeChain blockchain technology, which has also led them to partnerships with many enterprises such as Price Waterhouse Coopers, Jiangsu Electronics, Renault and more.
Crypto investors may also be confused by the 2 tokens offered by VeChain. Yes, it has two tokens that serve different functions:
- VET transfers value across the network. In other words, transactions on decentralized applications occurring on VeChain’s blockchain will use VET.
- VTHO token stands for VeChainThor Energy (VTHO) used to power transactions on VeChain and is equal to the cost of conducting transactions on its blockchain.
Although the public can invest in both the tokens, one should look at the VET token mainly because it is the store of value which encompasses all the partnerships bright prospects of VeChain which brings us to the next segment – 3 Key Growth Drivers of VeChain.
1. China’s Blessing & Opportunities Ahead
In case you have missed it, Chinese President Xi Jinping gave his official support of blockchain technology during October, 2019.
According to the BizInsider, He mentioned that blockchain would serve as “an important role in the next round of technological innovation and industrial transformation” and added that “China wants to gain an “edge” over other major countries in terms of blockchain research and development”.
Given that VeChain started in China and does much of its business in China, it is commonly favored as a Chinese Blockchain company. It augurs well for VeChain if the Chinese authorities are going to promote the use of blockchain in the enterprise level.
One such example is the tie-up of VeChain and People’s Insurance Company of China (PICC) a majority state-owned corporation and one of largest non-life insurers in China. VeChain intends to operate the blockchain technology mainly in the claims process to circumvent the tedious paperwork and audit process.
2. Validation of its Groundbreaking Technology
Globalization continues to drive huge cross-country demand for goods and services i.e. authentic French Wine from affluent Chinese consumers.
Unfortunately, it is difficult to validate the authenticity of any products when they span across the whole supply chain process in both transit and within warehouses. In addition, the industry is also riddled with issues on rising costs for transportation and logistics.
However, as previously mentioned, VeChain has come up with a real blockchain solution “FoodGates” to resolve these tracking issues set to shake up the supply chain management.
Going back to the verification process, FoodGates can now enable Chinese buyers to purchase excellent French products with total assurance about the origin, quality and safety while French producers could also have a direct access to the Chinese market, which creates a trustworthy bridge between both ends.
The fact that VeChain enabled the sampling of premium products verified using their blockchain system from both President Xi Jinping of China and President Emmanuel Macron of France indicates the strong vote of confidence behind its technology.
For those uninitiated, the 2019 China International Import Expo saw how premium products, including Label Rouge Limousin beef and Boisset wine from Burgundy, were delivered with a first French-Chinese Public B2B Ecosystem for food & beverage products. The innovative blockchain solution has been jointly developed by the three partners DNV GL, VeChain and ASI Group.
3. The upsurge in Enterprises’ Partnerships
As of 21 November 2019, there are over 2,000 altcoins and tokens listed in Coinmarketcap.com. But we are of the opinion that many of them have stopped their development or even gone bankrupt in this crypto winter.
But VeChain is on a different ballgame altogether. After its mainnet launch in 2018, VeChain has been growing at an unprecented pace and securing many partnerships with MNCs around the world.
It is currently working on proofs of concept for some of the world largest car manufacturers such as Renault and BMW. Some other renowned names also include DHL, BYD together with the business giant DNV GL.
In short, the more partnerships there are, the more businesses will buy VET to utilize its blockchain technology and it bodes well for VeChain’s token price over the long run.
To sum up, the utility of VET token can really shine once their blockchain solution primed towards the supply chain industry gets up and running to support a trillion-dollar industry.
As VeChain’s partnerships continue to expand and garner support from even a hardliner country like China, we believe that there is a lot of potentials to pay out big several years down the road.
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With an MSc in Applied Finance from the Singapore Management University, Christopher Long was also the sole recipient of the 2015 Columbia Threadneedle Investment Award. An ex-investment banker handling 6 figure deals and a former DCM banker for Multinational and Regional banks, Chris achieved ~15% returns for his personal equity portfolio and has an XIRR of much much more on his cryptocurrency investments. It took him 5 months of research into bitcoin before Chris left the field of banking and jumped into bitcoin.
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