In order to get complete understanding of VeChain, it is very important that we know the cons and pros of VeChain, and that is exactly what you will be reading in this article. The knowledge of the advantages and disadvantages of VeChain will help you in making the right investment decision. We have discussed the VeChain Blockchain in depth in our A Beginner’s Guide to VeChain article.
What is VeChain?
VeChain is a Blockchain that aims to improve the supply chain through the streamlining of the logistics control processes and by providing for the authenticity of the products. It enables the flow of information in a transparent manner and facilitates high speed transaction of value. Companies in various sectors are already using the chain to streamline their processes and these include luxury goods, food, agriculture, and government sector. In a news dated August 2018, VeChain partnered with Shanghai Authorities for vaccine authentication.
VeChain Use Case
From the initial production of a good, to the time it reaches the hands of the end consumer, a good or item passes through many parties. The current system requires that a trust be established between the different parties to ensure that the authenticity of the item is maintained and that there is no tampering with the good. Did you know, the luxury goods industry incurs a loss of as much as USD 450 billion annually due to tampering and other fraud-related issues?
VeChain solves the above issue. Products moving through the supply chain have a smart chip. This chip enables you to track the movement of the item across the supply chain. All the information is stored in an immutable ledger. Such a process allows for quality control as operators get complete control over the product.
VeChain is also very important in the logistics industry since the industry handles various products originating from different geographical locations as well as different companies who use their own systems. The management of all these different systems can be a difficult task, however with VeChain smart chips only one scan is all it is needed to get the entire information about the item’s movement. In short, VeChain completely eliminates the process of manual bookkeeping which can be time wasting.
Cons and Pros of VeChain- Should you invest?
- Unlike other cryptocurrencies, VeChain is not completely decentralized as it takes a sem-centralised approach.
- New upgrades and initiatives take more time to materialize due to the large size of the development team.
- Supply chain management and dApps category are two of the sectors where VeChain faces intense competition from already established cryptocurrencies.
- VeChain has many working dApps on its platforms which work on the permissioned Blockchain
- VeChain brand has established many reputable partnerships with some of the leading brands in the world. Most recently, VeChain inked a carbon emission reduction deal with DNV GL.
- The company is led by a strong team which has several years of experience in the crypto domain.
- Once the THOR mainnet is launched, all of VeChain’s partners will migrate to the THOR dual coin system.
With all of the above points discussed, one must note that VeChain is always on the list of the top cryptocurrencies in the world. The coin has witnessed steady growth since its launch and the release of the THOR mainnet makes the future look bright for the cryptocurrency.
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