VeChain. Review
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Dash. Review — August 2018.
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IOTA. Review. August — 2018
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TRON overview.
Cardano — review. Future plans.
Ripple — review. Further Perspectives
Litecoin. June’18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May’18 overview
Ethereum. May 2018 overview
Here on our Cryptoindex blog, we will be posting 100 articles about each of the top performing coins selected by our powerful AI algorithm#CIX100coinreview.
Today’s review: VeChain
The History of VeChain
The Project was launched on 19 August 2017. The non-profit organization VeChain Foundation dealt with the development and management of the project.
Unlike its competitors, VeChain’s team had more experience in using blockade as a technology. For many years the company developing in many industries, which allowed it to take the leading place in the world market.
The main activity of VeChain is logistics and quality assurance. The emphasis is on food and luxury goods. Each stage of creation and logistics of the goods is entered in the blockchain which protects against any changes in the data. The changes are available for public inspection, which makes it easy to coordinate the actions of the company’s units, simplifies the external control of institutional organizations and allows consumers to access the history of the facility.
Thanks to the cooperation of different companies, they were able to create ready-made solutions for integration into a number of areas:
- Logistics;
- AIC;
- Food industry and pharmacology;
- Luxuries;
- Public services.
VeChain products consist of two parts. Intelligence chips (NFC, RFID), or QR codes that allow you to identify objects. Blockchain-as-a-Service consolidates all information into a single network, which provides online access, analysis, data control. When they interact, an Internet of things (IoT) is created, which benefits both producers and consumers.
In addition to tracking the movement, symbiosis with IoT allows to optimize the quantitative and qualitative indicators in the process of growing and producing food products, as well as to simplify the work of state control bodies.
While VeChain has implemented several new protocols to improve smart contracts, their main goal is to avoid specialization in logistics and create a universal network with a wide range of tools for developing decentralized applications.
After switching to its own platform, it is planned to exchange the current VEN tokens to new VETs and add an additional internal resource (THOR) to work inside the network. It will gradually accumulate from the owners of the tokens by analogy with GAS in NEO. Changes will also affect the principle of consensus: a transition to PoS is planned. In addition, a separate purse will be offered.
Team
Management of the project is carried out by Sunny Lu. Previously, he was a co-founder of the Chinese Internet company BitSe, which created the cryptocurrency giant Qtum. Prior to that, he held the position of Chief Operating Officer and CIO of the Chinese representation of Louis Vuitton. The VeChain cryptocurrency project has one of the largest teams of about 60 people.
Advantages and disadvantages
The project intends to take the leading position in the cryptocurrency market and makes a lot of efforts to achieve this goal. The community unambiguously assesses VeChain’s focus on moving into a new segment and competing with Ethereum, Cardano, and NEO. The project has a number of obvious advantages:
- An experienced team of developers, consisting of more than 60 reputable experts;
- 111 existing network nodes in five countries;
- Cooperation with major well-known companies (Renault Group, Microsoft, BMW, BABYGHOST, DiG, PwC);
- A clear development plan that is being successfully implemented;
- Scalability of the network, which ensures stable operation in any area of the real economy;
- The regular growth of attention of investors, business;
- Positive market dynamics;
- Further diversification of the services is planned.
There are also disadvantages. Some believe that the project too quickly “inflates” its own scale. This can negatively affect both the quality of services and strategic success. In the narrow segment of logistics on the basis of the block, the project has only one competitor and in the sphere of basic platforms for creating smart contracts and decentralized applications, there is very strong competition and promising participants who regularly improve their work.
In addition, the consequences of migration from the block air of the etherium, new opportunities for consensus, additional internal resources are still not known exactly. Initially, there may be technical problems in the stability of the system.
Further prospects
VeChain Thor positions itself as the leading platform based on blockbuster technology for the corporate sector. Such ambitions have recently been confirmed by the conclusion of deals with new partners. After the Cryptocurrency was added to the portfolio of international consulting company PwC, its position on the market has significantly strengthened, the position in the rating is gradually improving. Recently BMW joined the list of partners, which led to a new growth of the course. The Chinese government also cooperates with the project in several directions at once (quality control of products, purchases, a creation of a smart city).
After creating a strong team and attracting the giants of the world market, the project may well be considered one of the most promising for today. VeChain Thor helps in the fight against counterfeit currency, and this is a very promising idea. According to CNN, the turnover of this shadow sector reaches $ 450 billion a year, so large producers are very interested in returning their market share.
Conclusion
The project has good potential and takes the leading place on the coinmarketcap. The capitalization of the virtual currency in 2017–2018 increased from $ 57 million to $ 2 billion, and at the peak amounted to $ 3.3 billion. This indicates a great confidence of users in the platform and its development.
At the time this article was published, VeChain makes up 0.357% of the total of CryptoIndex portfolio.You can always check the current CIX100 composition on our MVP platform: http://cryptoindex.ai/
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