VeChain is a Chinese blockchain project (notably maintaining strong ties and even collaborations with its government). Its cryptocurrency (VEN) climbed from around $0.24 to $4.34 in one year — an increase of 1708.33%. But what explains VeChain’s success? And why is this first dApp so important? This article aims to answer those questions.
What is VeChain?
VeChain (soon to be renamed VeChain Thor) operates on a “Blockchain as a Service” model with the mission to build “a distributed, trustless business ecosystem to enable transparent information flow, efficient collaboration, and fast transactions.”
The project has been active for more than two years and already offers a working product — a rarity in this space. Multiple industries, including luxury goods, agriculture, logistics, food and pharmaceuticals, as well as governmental bodies, are already using VeChain’s blockchain technology.
Using this technology, it is possible to track goods as they move through a supply chain, verify authenticity and product quality, and maintain strict controls over food safety standards.
VeVid
VeVid is the first dApp built for the VeChain Thor public infrastructure and is a crucial component of the platform. Maintaining KYC and digital identity is essential for widespread blockchain adoption worldwide — not only for cryptocurrency use but for general applications. Being able to identify system participants helps reduce fraud and allows governmental and financial institutions to better protect users.
A local example of VeVid in action is Fanghuwang, a fast-growing financial services platform based in China. Fanghuwang will work closely with VeChain to ensure that the platform’s blockchain-based lending KYC processes for all current and future customers meet the standards set by financial regulators and ultimately align with requirements established by both the People’s Bank of China (PBoC) and the China Banking Regulatory Commission (CBRC).
Another use case is the partnership with iTaotaoke.com, where the digital identity of content creators can be used across the VeChain ecosystem — and potentially other blockchain ecosystems — enabling creators to be recognized and accredited as verified individuals.
Standardization and simplification are the main advantages
The current online environment — and not only in blockchain — is fragmented and often chaotic. Each service we use requires separate identification, depends on individual passwords that can be forgotten, and stores data on servers that may be vulnerable. VeVid offers the possibility of a single standard identity that is usable everywhere and holds legal validity.
The goal is for VeVid to become a one-stop solution for individuals and entities seeking a permanent, verifiable, borderless identity on the blockchain. VeVid is being developed in tandem with BitOcean and other strategic partners to support globally recognized standards. The system was designed from the ground up to comply with Japan’s Financial Services Agency (FSA) and to meet other known governmental regulations. BitOcean and other key strategic partners contribute significant regulatory expertise to the components that make up this KYC system.
Conclusion
Global compliance enables VeChain Thor to become a blockchain suitable for development and use within enterprise ecosystems.
This decentralized application built on VeChain Thor is one of the foundational pillars for all future applications. It represents an important step toward global adoption and addresses the needs of ambitious partners awaiting the launch of VeChain Thor.
In short, VeChain’s future looks promising. Moreover, as VeChain is still in its early stages, there remains considerable room for VEN’s growth, which could multiply potential investments many times over.