Blockchain technology is revolutionising how industries operate in record speed.
Enabling decentralised systems means that large companies can work more efficiently. This not only saves them money, but it also fosters an environment where manufacturers, retailers and ultimately, consumers are able to come together as partners.
The Vechain Foundation has set up a blockchain for enterprises which is changing the game within many industries.
Much like Bitcoin shook up the financial industry, Vechain has taken blockchain technology and applied it in a way that is changing how industries use the Internet of Things to streamline their supply chain logistics.
Buy Vechain (VEN)
There is currently no way to buy VEN directly. So the only way to buy VEN is to purchase BTC to use on an exchange, and then switch it to VEN.
Step 1: Choose Your Trading Platform
Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..
Choose one of these platforms and complete the follow steps to get started:
Go to Binance and create a new account if you do not already have one.
Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.
Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.
STEP 2: BUY BTC
The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .
If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.
Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.
STEP 3: WAIT UNTIL YOUR BTC HAS ARRIVED
Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.
This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.
STEP 4: BUY VEN
Once your Bitcoin has arrived at your trading platform, it’s time to buy some VEN.
Go to the Binance trading exchange (click the top left on exchange and choose Basic) and use the search function within BTC Markets to find the VEN/BTC trade.
Once on the VEN/BTC trade page you can look in the left box marked with Buy VEN. Here you can decide how much VEN you want to buy using your Bitcoin.
If you then press Buy VEN your order will be placed. When the order is filled you will see your number of VEN on the right-hand box or on your balance page.
Congratulations you’re now the proud owner of VEN.
What Does Vechain Do?
Vechain has made a mashup between blockchain, Internet of Things, RFID and cryptocurrency.
Its purpose is to streamline how large enterprises operate.
If it’s a shipping company, they help the company and its consumers track all the information about a product or shipment from its inception to the point of sale via smart contracts and hashes on the chain.
A winery can authenticate the wine’s pedigree from the purchase of a vine cutting, to the fermentation process, all the way to the moment a consumer has the bottle in his hand. Fraudulent wines and other luxury items will have a harder time replacing the real deal thanks to blockchain technology.
A food distributor can certify food as organic more easily and when it is being shipped that the temperature and other factors are meeting the safety requirements.
Providing greater market transparency helps everybody within the supply chain. A manufacturer can be sure they are getting the exact parts or material they need, the shipper can track and monitor the conditions the product during shipping and the consumer can be assured that the product they bought is not only authentic, but if it is a perishable, that it was maintained safely.
With the Internet of Things currently needing to work within the cloud, a centralized database is necessary. The blockchain eradicates that need.
Without a gatekeeper, anybody can access the information from the chain. This is not only efficient, but it is much safer.
Think of all the data breaches that have been happening lately. That simply does not happen within the blockchain. Once a hash is changed, anybody can see the changes made and determine if it is spam , or worse, been hacked.
How Does Vechain Work?
A product, or even a service in some cases, is assigned a unique ID. This ID can be assigned to an RFID or QR code depending on what that ID is required to do.
The platform relies on nodes to maintain the blockchain ecosystem.
A smart contract is set up on a hash on the chain and the node enables public and private keys.
Each smart contract can be tailored specifically to each users needs. A Dapp, or decentralized application, for instance can be programmed so that a company has their own way of interacting with the platform.
The hash stores all the data necessary to the function of the either the Dapp, digital files really anything relevant to the product or service that is needed.
Examples of How Vechain is Used
The sky really is the limit with what is possible using blockchain technology. Here are just a few real world examples to demonstrate how Vechain works.
Wine and Liquor
Every step of the process of making wine or other liquors is stored in a unique ID. By scanning the ID, the user can see where the grapes were grown, when they were harvested, how they fermented and the entire bottling process.
By linking that to the shipper of the wine, even how the wine was shipped and even the temperature of the container can be seen.
The RFID or QR code is attached to the opening of the bottle. If that tag is altered in any way, it will be immediately apparent. This prevents an expensive bottle of wine being swapped with an inferior wine.
Supply Chain Logistics
Transparency is key when it comes to shipping goods internationally. Vechain blockchain enables every step of the shipping process to be immediately seen and authenticated by any user.
Efficiency is also much greater by using the blockchain technology combined with RFID technology. Imagine a warehouse or distribution center that tracks and stores all the information about that shipment as soon as it passes into the warehouse. A scanner can read the RFID tags from a distance so it can be entered into the system immediately and accurately at a much lower cost.
Renault has partnered with Vechain after seeing the obvious possibilities of using the blockchain.
The entire manufacturing process of an vehicle can be stored on a hash in the chain. Then, all the information about each part used can be accessed, including when the part needs to be changed.
Driving habits can also be transmitted to the hash which can then be accessed by one’s insurance company so the user can potentially pay a lower premium for good driving.
The Chinese government has bought into the Vechain system and is using it to streamline the processes needed to power their smart cities.
Taxing commodities is also made much easier and cheaper to conduct by the government, which can help reduce waste and save resources. Resources both financial and in terms of manpower needed to do these types of tasks.
Transporting perishable items is now much safer thanks to linking the Internet of Things and the blockchain.
A container filled with food can transmit the storage conditions, how long it took to ship and any other information to the blockchain, rather than a database. If there was some problem along the way, it can be seen immediately and any issues can be solved before that food gets eaten. Recalls of massive amounts of contaminated food will be seen less often since potential problems will be seen long before the food gets consumed.
This is really just the tip of the iceberg when it comes to how creatively Vechain’s blockchain can solve real world issues that businesses face.
How Does the Vechain Token VEN Work?
Trust is the main commodity with the blockchain. In this way the VEN currency is a way to place value on that trust.
The tokens will be used as GAS to execute the smart contracts.
The VEN token will also be used as an incentive mechanism, in that they will be awarded to network nodes that help facilitate the ecosystem via their operation.
Mainly, however, it will be the currency used to pay for the goods or services being offered by companies in the blockchain as a service, or BaaS.
We are seeing blockchain technology quickly take hold of everyday processes. It is changing commerce as we know it and Vechain is ready to become a leader in how the Internet of Things functions.
The fact that Vechain has partnered with such big names as Price Cooper Waterhouse, Renault, Microsoft and even the Chinese government shows that there is a lot of belief in this technology being the way forward to solving so many problems. Problems that always come with a cost of time, money or both.