Since the announcement of the China ICO ban and ensuing market conditions, VeChain was understandably forced into relative silence with the project remaining low key whilst long-term compliance issues were being discussed in relation to an ongoing relationship with China. For a long term fundamentals of the project, this represents a second chance to get on board as this is a severely undervalued project with huge long-term potential. VeChain strives to build a trust-free and distributed business ecosystem based on the blockchain technology self-circulated and expanding, they are one of the earliest blockchain technology companies in the world an definitely the earliest blockchain project in China, demonstrating proven blockchain implementation experiences in industries such as liquor, auto, luxury goods, retail, logistics, supply chain, agriculture etc.
In 2016, the total revenue generated from the production of counterfeit goods is estimated to have exceeded over 2.5% of the world’s entire trade volume, equaling around 450 billion USD. Even more eye-opening than this, is the fact that an estimated 86% (400 billion USD) of these sales are believed to have originated from China and Hong Kong alone. One Chinese fashion label known simply as BABYGHOST, has decided to partner with VeChain to protect itself from potential counterfeiting practices. In order to make a disruptive solution to this counterfeiting epidemic, as the project aims to completely eliminate the threat of fakes by utilizing blockchain technology to permanently record physical item identities using smart contracts on the Ethereum mainnet. They designed a way to directly combat this problem by enabling a secure and tamper-proof record of all original BABYGHOST products in a distributed database available for anyone to verify. A small VeChain chip is embedded inside each piece of clothing, along with a unique QR code on the label of the item. When a phone with the VeChain smart app is brought into close proximity with an original BABYGHOST item, the chip will transmit its public key and a digital “story” to the user for verification. The chip used by VeChain is similar to other Near-Field Communication cards, except that the information stored on VeChain’s chip is uploaded directly to its blockchain, guaranteeing a level of encryption and tamper resistance. Due to the upgraded level of security afforded by the blockchain, product safety and quality are always upheld to BABYGHOST expectations, ensuring a better customer experience.
It is estimated that up to 30,000 bottles of counterfeit wine are sold per hour in China alone, and examples such as the sale of a supposed bottle of 1787 Chateau Lafite being sold for $157,000 at auction, that later turned out to be fake, could become a thing of the past with widespread adoption of the VeChain ecosystem. To further VeChain’s anti-counterfeit technology, they’ve recently built the liquor tracing platform for DIG and PwC. DIG, known as Shanghai Waigaoqiao Direct Imported Goods sales centre Ltd., a subsidiary of Shanghai Waigaoqiao Free Trade Zone Development Co., Ltd. which aspires to build the largest distribution centre for imported goods in China. As it stands, 30% of all Wine imported into China comes through DIG, largest government owned importer of wine in China. With VeChain’s tech, the data of the products were written into the smart chip attached to the bottles, and recorded on the VeChain blockchain. Information such as logistics, sales will also be stored on the blockchain so the customers can simply scan the NFC smartchip to view the whole lifecycle of the product to verify the authenticity. In 2016, China was the fourth biggest import market behind Germany (129.23 million 9-litre cases) the UK and the USA. In five years, it is expected to reach 94.46 million cases of imported wines, and with this, China will overtake the USA (85.76 million) and become the third biggest import market. If DIG maintain their share of 30% of all imports into China, that represents a potential for up to 1.2 billion 70cl bottles of wine to pass through DIG in 2021 ((94,460,000 * 9) / 0.7), and if each of those is authenticated with a VeChain NFC chip, thats brings huge potential for the project since Vechain is their only partner in Blockchain to track French wine.
On the other hand, Madeforgood has signed a partnership with Vechain to secure their interest in anti-counterfeit technology. Madeforgoods is a cloud platform that uses QR-codes to provide ‘the most advanced tracking solution for consumer-centric Packaged Goods companies’. They have serviced over 500 food brands across the globe include well-known brands like Michelin, Monin, Pernod Ricard and Saint-Gobain. The partnership will combine VeChain’s blockchain platform with the existing madeforgoods cloud platform to provide a more reliable, traceable solution as part of a forward-thinking strategic plan.
Processing of food from agricultural products in China produced 8.2% of the countries share of gross industrial output in 2015. Gross output is equal to the value of net output or GDP (also known as gross value added) plus intermediate consumption. With a GDP of 2,866.9 RMB bn in 2015, that means that the agricultural products produce 235 RMB bn ($35B) within the industry. Liaoning Province has more than one million vegetable greenhouses and is one of the most important export destinations for agricultural products in China. Lately, reports have been appearing regarding the immense drought affecting the favorable yield of Liaoning Province, something proper IoT technology can help mitigate.
In partnership with Liaoning Academy of Agricultural Sciences, VeChain will be providing the chain-based data storage and interaction platform for smart green agriculture in greenhouses. In the process, VeChain is building a proprietary blockchain agricultural cloud platform for green organic agricultural products incorporating an NB-IoT(Narrow Band Internet of Things). The NB-IoT will be directly deployed on GSM, UMTS or LTE networks to reduce the deployment cost and it enables smooth upgrade at the same time for clients.
As a result of this partnership, Liaoning Academy of Agricultural Sciences can provide related data, IoT equipment, scientific farming methods and scientific fertilizers for greenhouses to achieve meticulous farming and management of the growth process of agricultural products within the province.Through the deployment of various NB-IoT equipment like sensors, controllers and digital cameras inside of the vegetable greenhouses VeChain will be able to offer a vast array of functionality using personal computers and smartphones. VeChain will be able to provide updates regarding the data of climatic change, soil regime agriculture, crop growth status, water and fertilizer use status, equipment operation status, and even remotely controlling the process of irrigation, ventilation, and cooling of their products.Currently, there are twenty-four research institutes in Liaoning Academy of Agricultural Sciences, with fifteen national (international) research and testing institutes, eight national-level original seed bases, five agricultural science observation and experiment stations of Ministry of Agriculture, sixteen provincial key laboratories, nine agricultural engineering technology research centers. The VeChain Smart Agriculture solution improves the quality control and product tracking transparency, and finally to eliminate the trust crisis regarding green agriculture authorization among consumers, to enable the precision operation thus to improve the quality control and product tracking transparency, and finally to eliminate the trust crisis regarding green agriculture authorization among consumers.
VeChain has also attracted Automobile Industry, the recent announce of a collaboration with Groupe Renault to provide the manufacturer with a digital car maintenance book has today revealed that blockchain technology is also capable of stopping the practice of “car clocking”. VeChain worked with VISEO and Microsoft on this proof of concept for a ‘Digital Passport’ for their vehicles. From June to September, VeChain held meetings with Daimler Mercedes and BMW in Germany to deploy smart contract. Their first stage of POC have been successful so far and now they’re moving onto the next stage.
VeChain have signed a partnership, poetically called “the Unicom cloud ecological strategic cooperation agreement” with China Unicom the world’s third largest telecommunications company by subscription (Revenue: 274.2 billion CNY (2016)). They cover hundreds of millions of users with a huge business network and ecosystem. Vechain’s role in the partnership will be to develop and help the state owned enterprise within its business network with BaaS (Blockchain as a Service) on the cloud using blockchain.
Liaoning Province has more than one million vegetable greenhouses and is one of the most important export destinations for agricultural products in China. Lately, reports have been appearing regarding the immense drought affecting the favorable yield of Liaoning Province, something proper IoT technology can help mitigate.
This coin has amazing potential, and we’re expecting it to perform very well moving into Q1 2018.