Focus Fire: VeChain (part 2)
In the Focus Fire series, we take time to really get to know a project and focus on different elements of what makes the project great. We hope it provides a better understanding of the technology and its vision to the larger cryptocurrency and blockchain community. Today, we continue our examination of the VeChain platform, examining a number of business solutions and a variety of prominent partnerships the project has secured.
To begin the second part of our Focus Fire series on VeChain, we return to the familiar chorus that the company continues to repeat as its ongoing mission: How will this technology be useful for businesses around the world?
Prioritizing practical business solutions, VeChain has fervently sought a broad range of partnerships as a key strategy in its pursuit of genuine utility and widespread implementation. This has led, naturally, to an emphasis on real partnerships with businesses that see VeChain’s technology as a solution to issues they face.
Of course, this also leads the larger community to constantly seek out rumours of upcoming partnerships. In our efforts to inform and empower our community, CryptoMurmur went straight to the source, interviewing VeChain CMO, Noah Huo, regarding the partnerships VeChain has secured and the implementations of VeChain’s technology that are currently in the works with these partners.
The list is long and ever-expanding — which is great, of course. A technology that focuses on business solutions can only be legitimized if it does indeed cooperate with and serve the needs of a large variety of companies.
In part 1 of our VeChain series, we briefly looked at examples of the technology’s utility, such as the tracking of fine wine created in France and sold in China, and the authentication of luxury brands via NFC chip scanning. From these earlier concepts, VeChain is expanding to a broader range of applications, from food and luxury brands to the automotive industry to cooperation on a larger scale with governing bodies around the world.
Today, let’s look specifically at some of the names who are working closely with VeChain:
Occupying a seat on the steering committee that acts as the governing body of the VeChain project, PwC is a major shareholder and key figure in enabling VeChain to leverage resources in the broader industry. The second largest professional services firm and described as the most prestigious accounting firm globally, PwC is widely recognized in the business world and lends the VeChain brand legitimacy and far-reaching influence that would not be possible without the likes of such a significant partner.
Renault, BMW, and BYD
Some global automotive manufacturers, Renault, BMW, and BYD (the largest electric vehicle manufacturer in the world, based in China) have partnered with VeChain with the goal of implementing its maintenance passport solution to record maintenance records. The blockchain technology will be used for the tracking of maintenance, repairs, brake wear, odometer readings, and even driving habits, making it far easier to be assured of the quality and maintenance of automotive products.
VeChain, DNV GL and BYD have also teamed up to initiate a Carbon Credits project. This solution to carbon pollution rewards vehicle operators with credits based on their vehicles’ driving performance and emission reduction. The program provides the tools necessary to construct a blockchain-based ecosystem aimed at reducing the global carbon footprint. Each footprint captured will be recorded on the VeChainThor Blockchain and made available to clients interested in participating in the initiative. The rewarded credits can then be used as a form of payment for insurance as well as to purchase everyday needs such as food from participating stores. For example, credits can be obtained by driving electric vehicles manufactured by BYD and products can then be purchased from Bright Food with the earned credits.
You may not have heard of this entity, but it plays an important role in providing risk assurance and quality assurance services. the global supply chain of goods. Acting as a certification-issuer, DNV GL ensures transparency and traceability of a wide range of products, from initial production to the point of purchase. Ensuring that procedures are followed in production and that standards are maintained throughout a product’s fabrication and distribution, DNV GL will now harness VeChain technology to aid in this process. This is a perfect partnership for VeChain as the two entities seek to serve the same need, now made more efficient and trustworthy via blockchain and IoT technology.
Few could imagine a larger partnership than one with multiple governing bodies in China. VeChain is working with certain departments in a national level new area named Gui’an New Area to improve efficiencies, reducing barriers and redundancies between disparate departments and bureaus. CMO Noah Huo gives a simple example: the currently slow and complicated process of opening a new restaurant business. This normally requires multiple submissions of documentation to numerous governing bodies, often redundant and slow to be processed. With VeChain’s technology, it is instead possible to submit the documentation once, assure its authenticity, accuracy and completeness, and share it quickly to multiple governing bodies.
VeChain has also worked closely with governing bodies in Shanghai for the purposes of wine product traceability. Within the free trade zone, Shanghai imports goods from around the world and is a key location in the global supply chain that feeds into China’s economy. VeChain is also working with the city of Shanghai as a testing zone, with the goal of assisting in the process of product imports such as wine and luxury goods, for example.
The aforementioned carbon credit program, in cooperation with BYD, is also in the initial stages and will likely see cooperation with Chinese governing authorities in the future.
Another partnership at the national level, VeChain and Cyprus have signed a Memorandum of Agreement to utilize the blockchain on a broad scale in the country. Although CMO Noah Huo says not much can be disclosed, he did share a few details regarding this agreement. VeChain and partner CREAM seek to help Cyprus make a transition into the digital age via a digital transformation of the economy and its governance.
Leveraging lessons learned from the highly digitized lives of Chinese citizenry, who rarely use cash for any monetary transaction, instead relying on mobiles and digital interactions, VeChain will apply these principles in aiding the Cyprus government to leapfrog into an age of digital transformation. Without sharing too many details, VeChain would be used in Cyprus, Huo explained, to integrate technology at the infrastructure level, particularly in the FinTech industry, government affairs, and in finances.
More Partnership Rumours
Of course, rumours continue to swirl regarding new potential VeChain partnerships on a constant basis. Huo explains that due to very strict release policies and NDA agreements, VeChain simply is not at liberty to disclose all of its partnerships. It seems that the community will need to be patient and understanding of the long process involved in securing such agreements. Based on the partnerships secured thus far, it looks like VeChain is definitely heading in the right direction.
In the final part of our Focus Fire Series about VeChain, we will look at the team behind VeChain in a little more detail, getting to know a few of the key figures behind the technology.