VeChain wants to build trust-free and distributed business ecosystem based on the Blockchain technology self-circulated and expanding where the information will be transparent and relatively symmetrical. (Absolute symmetry does not exist).
In their ecosystem, every business participant will be able to reduce the potential trust issue between different participants, which will, in turn, make business cooperation simpler, more efficient and lower costs.
They want to “translate” products, participants, and business activities from the real world to the world of VeChain.
VeChain Token (VEN)
VeChain tokens will be carrying the value transfer function of the Blockchain network and various commercial activities running on it. The main function of the VEN token is to circulate as much as possible and to let each participant use it.
They described the use of VEN as a loop with the reference to the above infographic.
– the loop begins when the end-users and enterprises invest ETH to obtain VeChain Token. VeChain uses this ETH to perform technical development, commercial application cooperation, promotion and Blockchain services support.
– VeChain Foundation receives VEN from each smart contract development and service provider to pay for the gas needed to run the smart contract. 75 – 99% of the VEN income will be awarded as a reward to the node provider, while the remainder will be used for the daily operation, business promotion and technical development of the VeChain Foundation.
– Smart contract service providers use VEN to pay for gas and provide smart contract service. Each participant receives VEN from its client according to business rules and contributions.
– Application providers develop applications of the traditional enterprise costumers or end-users and receive VEN as corporate income.
– End-users can pay with VEN to obtain enterprise products and services.
Through the creation of the ID of each product and IoT encrypted chips, digital ownership will be possible.
Supply: 1 billion VeChain Tokens (VEN)
41% – Crowdsale (will be used to fund development, marketing, finance and legal advisory of the VeChain Foundation.
9% – Private Investors
23% – Enterprise investors (refers to enterprise in the VeChain distributed business ecosystem)
5% – Cofounders, development team (as a reward)
12% – Continous operation and technological development (operating costs of VeChain)
10% – Business development
The VeChain Foundation will use 5-10% of funds to invest in the Blockchain industry, start-ups, incubators. The budget structure below.
Fashion and luxury industry – counterfeiting. VeChain aims to follow production management, production channels and the connection with costumes to remove the risk of counterfeiting. The third party makes products based on the order plan and at the same time, the brand party can activate this product after verifying it. This authorizes the real thing from the beginning of the process.
VeChain provides a digital ownership to build a bridge between the brand and costumes. It can also track the trends of the second-hand market. At the same time blockchain allows the privacy protection and perfectly fits the General Data Protection Regulation.
VeChain puts IoT encrypted chip into the product and collect data and records it on Blockchain for every logistics warehousing and transmission. After the costumers get the product they can scan the chip behind the tag through the app and they immediately know the history of this product.
By doing this, costumers can identify the authenticity of the product and make a statement of the product’s digital ownership.
A similar process applies with food safety, car industry, supply chain industry, agricultural industry, and blockchain government affairs.
The market for this type of service is absolutely enormous.
You can check out the team and their references here: https://cdn.vechain.com/vechain_ico_ideas_of_development_en.pdf Pages: 60-66
The first thing we notice is that the team is really big. A lot of them started this project 2 years ago and have gained a lot of experiences in the blockchain field. They managed to get legal counsel from the lawyer of MGM, Disney and Rolling Stones. Business Development from Jerome Grillers working at Barclays and developing real time trading applications for Investment banks. To combine blockchain and IoT is Jianliang Gu, Technical diretor with more the 16 years of experience in hardware and software of embedded system development and management. The list just goes on and on.
As far as the information provided we believe that the team is competent and big enough to pull such a massive project through.
Since the majority of information is not available in English there are still a lot of things we need to know before we can say for sure that this is a sound investment.
However, we at the Crypto-Trader Club agree that the vision they are pursuing and the concept they are creating is such a tremendous opportunity that despite the lack of information it is worth taking a risk and participate in this ICO.
The business model seems to work as it should since every participant has an incentive to trade with VEN tokens and every participant has a benefit from this ecosystem. It is built for enterprises and consumers and it is a win-win situation.
There are still a lot of technological and legal hurdles they need to overcome, but we believe it is doable.
The market they are pursuing is just massive. A lot of companies tried to tackle this markets and problems but using blockchain in connection with IoT could be the answer they were all looking for.
We are confident based on what we learned that the team can pull this through. If they do succeed this might be one of the most disrupting projects built on the blockchain.
We will participate and follow it closely if it turns out as we believe it will, we will raise our position in this project in the future.
ICO start in 2 days – stay tuned.
Peter, Crypto-Trader Club