🌐VeChain: The Truth About VeChain's 'Transparent' Supply Chain Management Solution,👨⚖️ Craig Wright Is Not Bitcoin Creator, Judge Declares,💸 Decrease in Layer 2 Transaction Fees
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In today’s edition:
Deep Dive into VeChain
Craig Wright Is Not Bitcoin Creator Satoshi Nakamoto, Judge Declares
Decrease in Layer 2 Transaction Fees After Dencun Upgrade and EIP-4844
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Total Read Time: 10 Min 20 Seconds
🔎 Deep Dive
VeChain: The Truth About VeChain's 'Transparent' Supply Chain Management Solution
Welcome to our Deep Dive section, where we examine the cutting-edge technology behind Web3 infrastructure. In this section, we'll explore the details of VeChain, a blockchain platform revolutionizing supply chain management.
In this issue, we'll explore the inner workings of VeChain, discussing everything from its proof of authority consensus algorithm to its use cases and limitations. We'll examine how VeChain's focus on real-world applications sets it apart from other blockchain projects and why its dependence on established partnerships is both a strength and a weakness.
So, let's dive in and discover the ins and outs of VeChain, a platform changing the game in supply chain management.
Here is How Everything Started. (History & Founders)
VeChain was founded in 2015 by Sunny Lu, the former Chief Information Officer (CIO) of Louis Vuitton, China. The idea behind VeChain was to create a blockchain platform to enhance supply chain management and business processes by streamlining them and improving information flow for complex supply chains through distributed ledger technology (DLT).
The initial goal of VeChain was to disrupt the supply chain industry by making data actionable and transparent. It aimed to provide a full view of an organization by disintermediating information from data silos, thereby breaking the asymmetric information problem and allowing ownership of data to return to and empower its owner. This was intended to create greater market transparency and efficient collaboration.
VeChain started as a subsidiary of Bitse, one of China’s largest blockchain companies, and transitioned onto its blockchain, rebranding itself in 2018. The VEN token functioned on the Ethereum blockchain initially, but the transition led to the creation of the VeChainThor (VET) blockchain. The platform contains two distinct tokens: VeChain Token (VET) and VeChainThor Energy (VTHO). VET is used to transfer value across VeChain’s network, while VTHO is used as energy or "gas" to power smart contract transactions.
VeChain has formed strategic partnerships with several companies to achieve its goals, including agreements with PricewaterhouseCoopers (PwC) for blockchain-powered solutions to improve product verification and traceability and with Renault, Microsoft, and Viseo to create a digital car maintenance book that cannot be tampered with. It also serves as the government technology partner for Gui’an, an economic development zone for the Central Chinese Government.
The platform is designed to facilitate businesses of all sizes, offering tracking tools and data resources for transparency in manufacturing, shipping, and other processes. It uses QR Codes, RFID, and NFC to create a unique identity for physical products. It has collaborated with manufacturers like Qualcomm and Bosch to create sensors that can track data at every step of the supply chain.
VeChain's governance protocol uses Proof of Authority as a consensus protocol, where votes are disbursed based on VET holdings and disclosure. This system aims to achieve a balance between centralization and decentralization.
Here's how VeChain works🤔
Let’s understand the workings of VeChain using supply chain management as an example:
Unique identification creation
Each product or batch is assigned a unique identification number. This number might be a near-field communication (NFC) chip, a radio-frequency identification (RFID) tag, or a quick response (QR) code. This identifier is essential for monitoring the product’s progress along the supply chain.
Data capture and recording
Relevant data is recorded at every stage of the supply chain, including manufacturing process details, batch numbers, expiration dates, storage circumstances, transit information, and other facts. After that, this information is stored on the VeChain blockchain.
Blockchain entry
The captured data is stored on the VeChain blockchain. Every record is time-stamped and connected to the one before it, forming an unchangeable and transparent chain of records.
Smart contracts activation
On the blockchain, smart contracts are pre-written agreements that take effect automatically if specific requirements are met. In the supply chain, this could mean releasing payments, notifying stakeholders when a product reaches a particular location, or automatically updating a product's status.
Real-time tracking and verification
Real-time tracking and verification are possible for all parties involved in the supply chain, including customers, distributors, manufacturers, suppliers and retailers. They can confirm the product’s background and other information by accessing the blockchain.
End-user interaction
End users can engage with a product’s blockchain record, even using a smartphone app, to confirm its legitimacy, provenance, and other pertinent information. This promotes consumer confidence and product authenticity.
Continuous updates and audits
The product’s record on the VeChain blockchain is updated continuously as it progresses through its lifecycle. This ongoing process ensures the data is updated and auditable for compliance, quality assurance, and other uses.
In VeChain’s supply chain management, Know Your Customer (KYC) processes are crucial for verifying the identity of businesses and stakeholders, ensuring that only legitimate entities participate in the network.
Various nodes (such as Authority Masternodes and Economic Nodes) on the blockchain record transactions within this ecosystem. This system maintains the integrity and transparency of the supply chain data, with smart contracts automating key processes like confirming deliveries or payments, ensuring efficient and secure transactions without intermediaries.
But is the VeChain network secure? VeChain works with security companies, including Hosho, SecureWare, SlowMist, and HackenProof, to find potential vulnerabilities and proactively prevent cyber threats.
For instance, VeChain’s low-code deployment PaaS allows customers to design process templates and use the built-in tools to avoid creating their own blockchain applications from scratch. In addition, its Food Safety Track & Trace SaaS offers the food and beverage industry a range of easily deployable traceability features, such as quality certificates, to communicate and reliably increase brand recognition.
Through BaaS, VeChain offers a restful API for standardized smart contract services. Two computer systems use the restful API, an application programming interface, to exchange information safely over the internet.
The Current Project Update of VeChain
VeChain has launched a new Software Development Kit (SDK)! Whether enterprise client or Web3 native, having a powerful SDK makes the development journey seamless. The library below links to VeChainThor adaptations of standard Ethereum tools, offering ETH and EVM builders a seamless environment.
You can find the new resources below:
Next, The launch of VeBetterDAO marks the start of the next chapter in their sustainability journey, bringing to life the technical vision outlined in our ‘Web3 for Better’ whitepaper. Co-developed with the Boston Consulting Group, the whitepaper details a mutual vision of advancing action on sustainability with Web3 tools, driven by the ‘X-2-Earn’ strategy, where actions can be transformed into value through blockchain.
If you can’t wait, hop straight into the VeBetterDAO whitepaper right away!
The VeBetterDAO launches in three phases: Pilot Show Alpha: Testnet Take-off, Pilot Show Beta: Mainnet Blitz, and Go-Live Gala. Each phase welcomes new features, with the Go-Live Gala launch coinciding with the full mainnet launch on June 30th, 2024, the birthday of the VeChainThor blockchain.
Check out the platform, which is now live at vebetterdao.org!
Introducing the B3TR & VOT3 tokens
With the launch of the VeBetterDAO comes the necessary introduction of two new tokens to power the ecosystem. To accelerate the pace of adoption for VeChain through user-friendly dApps, VeBetterDAO is designed to directly complement the existing tokenomic structure by increasing transaction demand and usage.
Incentive token — B3TR
B3TR, the incentive token, has multiple functions within the ecosystem, including:
General incentive token for VeBetterDAO, including DAO Treasury Management
Value carrier and monetization mechanism for active participants and innovative enterprise models
Incentive token for sustainability applications, including project support, community growth, and engagement
Backing VOT3 tokens 1:1, the token required for VeBetterDAO governance
Governance Token — VOT3
VOT3 is the governance token of VeBetterDAO. Its functions include:
Required to take part in governance events
Staked to determine allocations of newly minted B3TR tokens
Being redeemable, 1:1 between B3TR and VOT3, via a dedicated swap pool
More details on each token can be found in the VeBetterDAO whitepaper.
The current market of VeChain (VET)
As of 23 March 2024, the live VET price is $0.04097, with a 24-hour trading volume of $62,668,631 USD. VeChain is down 2.93% in the last 24 hours.
Here are some additional statistics:
Market Cap: $2,979,760,842 USD
Trading Volume in the last 24 hours: $62,378,715 USD
CoinMarketCap ranking: #43
Circulating Supply: 72,714,516,834 VET
Total Supply: 85,985,041,177 VET
Fully Diluted Market Cap: $3,553,091,639
The Highest Price: $0.281 - Apr 19, 2021 (almost 3 years)
The Lowest Price: $0.001917 - Mar 13, 2020 (about 4 years)
Total value locked (TVL) in DeFi, March 2024. Source
According to Changelly.com
2025: The minimum price is predicted to be around 0.0776, the maximum expected to be around 0.0897, and an average trading price of 0.0802.
2026: The minimum price is expected to be around \0.1103, with the maximum reaching \0.1367, and an average trading price of \0.1143.
2027: The minimum price is predicted to be around 0.1620, the maximum expected to be around 0.1976, and an average trading price of 0.1677.
2028: The minimum price is expected to be around \0.2370, with the maximum reaching \0.2841, and an average trading price of \0.2437.
2029: The minimum price is predicted to be around 0.3350, the maximum expected to be around 0.4139, and an average trading price of 0.3472.
2030: The minimum price is expected to be around \0.448, with the maximum reaching \0.509, and an average trading price of \0.467 .
These are just predictions and should never be considered financial advice. Always do your due diligence before investing in cryptocurrencies. Various factors, including market trends, technological advancements, and the regulatory environment, can influence the future value of VET.
The Limited Use Cases of VeChain: A Platform Built for a Specific Niche?
VeChain offers several advantages and unique features that set it apart from other blockchain platforms:
Improves Transparency in Supply Chain: VeChain enhances transparency by using smart chips, RFID tags, and QR codes to track the movement of goods across industries. This real-time tracking allows all parties involved to verify product authenticity and boost consumer confidence.
Support for Decentralized Applications (dApps): VeChain provides a low-carbon, highly scalable platform for building and running dApps, aiming to offer unparalleled transparency into product supply chains. This is achieved through partnerships with major businesses like BMW and Walmart China.
Support for ICOs: VeChain facilitates the issuance of tokens on its blockchain, enabling companies to create digital currencies for market trading. It supports both fungible and non-fungible tokens, streamlining the process through toolkits and APIs.
Handles Complex dApps at Enterprise-Grade Speeds: Utilizing a reputation-based Proof of Authority (PoA) model and smart contract capabilities, VeChain ensures quick consensus and efficient application management. This is facilitated by VORJ, a platform for creating smart contracts without coding.
Two-Token Model: VeChain features two native tokens, VET and VTHO, to separate the cost of using the network from market speculation. This model aims to keep network fees stable.
Proof of Authority Consensus Mechanism: VeChain's PoA consensus mechanism, where validators earn their position through a financial stake and by revealing their identity, is unique. This mechanism is neither energy-intensive nor requires a minimum number of validators, making it suitable for enterprise adoption.
Meta-Transaction Features: VeChain offers meta-transaction features like fee delegation, controllable transaction lifecycle, clauses for multi-task transactions, and transaction dependency, making it more user-friendly for enterprise adoption.
Centralized but Secure: Despite being centralized with only 101 authority master nodes, VeChain's Proof of Authority system ensures network security and accountability. This setup, while centralized, is designed to be highly scalable and resistant to attacks.
Focus on Real-World Applications: VeChain's focus on supply chain management solutions is unique, addressing real problems and needs for businesses across various industries. This practical approach has led to real-world implementations and partnerships with major companies.
Like any other project, the VeChain has its disadvantages and challenges that users may face. Here are some of the main ones:
High Minimum Deposits for Running Nodes: To participate in the VeChain network, users must hold a significant amount of VET tokens, which can be a barrier for smaller investors or those looking to get involved without a substantial initial investment.
High Withdrawal Fees: Depending on the exchange used, VeChain users may encounter high withdrawal fees. This can be a deterrent for users looking to minimize transaction costs.
Limited Mining Capabilities: VeChain uses a Proof of Authority (PoA) consensus mechanism, which means VET cannot be mined. This limitation contrasts with other blockchains that allow users to mine their native tokens, potentially affecting the network's security and decentralization.
Dependence on Real-World Partnerships: While VeChain's partnerships with reputable corporations and institutions are a strength, they also introduce dependencies. The success of VeChain's solutions heavily relies on the continued support and interest of these partners.
Transaction Fees: VeChain's transaction fees, starting from 21 VTHO, can be a concern for users looking to minimize costs. Additionally, the withdrawal fees of 100 VET can add to the overall expense of using the platform.
Limited Smart Contract Functionality: While VeChain supports smart contracts, the functionality and flexibility compared to other blockchains like Ethereum might be limited. This could affect the types of applications and services that can be built on VeChain.
A permissioned, KYC’d, centralized, and closed ecosystem of MasterNodes that offers none of the open, free-to-participate, permissionless characteristics of Bitcoin or Ethereum
The VeChain Foundation is the ultimate authority and gatekeeper to the blockchain, with the ability to change monetary policy and other critical decisions
VeChain was built for a large but very particular supply chain management use case, meaning there is essentially no reason a retail user needs the coin.
Conclusion
In conclusion, VeChain stands as a pioneering force in supply chain management, leveraging blockchain technology to enhance transparency, efficiency, and trust across various industries. Founded in 2015 by Sunny Lu, VeChain's journey from its inception to the launch of its VeChainThor blockchain has been marked by strategic partnerships, technological innovation, and a clear focus on real-world applications.
One of VeChain's notable strengths is its ability to provide end-to-end visibility into the supply chain. This enables stakeholders to track products in real-time, verify authenticity, and ensure compliance with regulatory standards. Through its unique identification creation process, data capture and recording mechanisms, and smart contract activation, VeChain offers a comprehensive solution for businesses seeking to optimize their operations and build consumer confidence.
However, VeChain is not without its limitations and challenges. High minimum deposits for running nodes, withdrawal fees, and a centralized governance structure may pose barriers to entry for some users. Additionally, the platform's dependence on established partnerships and its narrow focus on supply chain management could limit its appeal to retail investors and users seeking broader utility.
In the competitive landscape, VeChain faces rivals such as RenVM, Lido, Mozaic, Ethereum, Fantom, etc. Each project has unique strengths and focuses, making the storage industry dynamic and highly competitive.
Ultimately, the decision to engage with VeChain or any blockchain platform should be made carefully by considering its advantages and disadvantages, individual investment goals, and risk tolerance. While VeChain offers unique opportunities for streamlining supply chain processes and driving innovation, users should conduct thorough due diligence and assess whether the platform aligns with their objectives before taking action.
📌Must Read
Craig Wright Is Not Bitcoin Creator Satoshi Nakamoto, Judge Declares
Summarized: A surprisingly fast ruling at the end of a six-week trial in the UK High Court ends Craig Wright's campaign to be recognized as the inventor of Bitcoin.
You wouldn't believe the latest twist in the ongoing saga of Bitcoin's mysterious creator! A UK High Court judge has made a sharp ruling, declaring that Craig Wright is not Satoshi Nakamoto, the elusive mind behind Bitcoin.
After a six-week trial filled with jaw-dropping revelations, the court concluded that Wright failed to prove his Satoshi claim and even resorted to alleged forgery. The Crypto Open Patent Alliance (COPA) led the charge against Wright, accusing him of fabricating evidence and spinning tall tales. Spoiler alert: Wright didn't even bother showing up for the climax.
COPA dropped some bombshells, highlighting alleged forgery and inconsistencies in Wright's story. The courtroom drama peaked as the legal teams duked it out over expert testimonies and the authenticity of critical documents.
In a final push, COPA demanded an injunction to silence Wright from ever claiming the Satoshi mantle again. And wait for it... they even suggested referring the case to the criminal courts for possible fraud charges!
As we await the formal judgment with bated breath, it's clear that this trial has sent shockwaves through the crypto community. 🌪️ What's next for Craig Wright? Only time will tell.
Decrease in Layer 2 Transaction Fees After Dencun Upgrade and EIP-4844
Summarized: Fees just dropped to below a penny on Ethereum L2s, which will (hopefully) inspire more people to adopt and innovate upon the Ethereum blockchain.
Have you heard about the recent drop in transaction fees across various Layer 2 (L2) networks following the Dencun upgrade and the deployment of EIP-4844 on the Ethereum ecosystem? 🌐
In the past week, L2 networks like Optimism, Base, Arbitrum, zkSync Era, and Starknet have significantly reduced transaction fees, making it more affordable for users to interact with these platforms. 📉
For instance, Optimism reported an average transaction fee $0.05 and the median fee was $0.0038, while Base recorded an average fee. The zkSync Era sequencer using Calldata saw a massive 88% decrease in costs, making it more accessible for users and developers. 💪
Jesse Pollak from Coinbase even highlighted the impact of these changes, mentioning that their L2 Network Base fee dropped from $0.31 per transaction to a mere $0.0005. That's a huge win for transaction affordability and accessibility.
Starknet also saw a remarkable drop in gas fees, with transactions costing as low as US$0.01-0.04 per transaction, down from around $2. This 99% fee reduction is a game-changer for users interacting with the Starknet platform. 🌟💸
These fee reductions signify a positive advancement in scalability and affordability within the Ethereum ecosystem. Exciting times are ahead for decentralized finance!💰
Remember, always do your research before diving into crypto investments.
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