Did you know that the luxury goods industry is flooded with counterfeit items that are worth over $450 billion? Most of the items go through several hands during production and distribution. And from the factory to a store, a lot of things can happen.
So, if you want to buy, for example, a Gucci bag, you’ll simply have to trust the distributor that the bag is original.
And this is exactly why we need blockchain platforms such as VeChain. With it, you don’t have to guess and hope that the product you buy is the real thing. You can be sure.
So, in today’s crypto guide, you’ll find out more about VeChain.
What is VeChain?
The company is based in Singapore, and it’s a subsidiary of BitSe, which is one of China’s largest blockchain companies. In February 2018, VeChain got rebranded and named VeChain Thor.
So, what exactly does the company do?
VeChain is a Blockchain-as-a-Service company, trying to build a trust-free and distributed transferring ecosystem. The company is working with different industries such as:
- Digital content distribution
The platform helps these industries to track items through a supply chain, and to ensure the authenticity and quality of goods.
Now, let’s see how the technology behind VeChain works.
How does VeChain work?
The platform combines open ledger blockchain technology with its own smart chip. Plus, the team implemented the Proof of Authority (PoA) consensus.
In PoA, known validators create blocks, but the platform also uses additional nodes to maintain the blockchain network.
This way, the platform can track items from production to distribution.
Despite starting out as a blockchain supply company, today, VeChain is a full DApp platform.
Its team consists of 150 talented members. Leading the team as its CEO is Sunny Lu, who led IT and Information System projects for several luxury brands, including Louis Vuitton China.
VeChain also has some notable partnerships with companies like PwC and DNV GL. Moreover, the company is a blockchain technology partner of the government of Gui’an, in China.
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