VeChain Review by FIMA Plus Company

1. Overview

VeChain is an enterprise-focused decentralized application (dApp) platform that uses blockchain technology to monitor, track, improve, manage, and audit a product and/or system. It provides a robust infrastructure for data management and IoT solutions, removing issues with counterfeiting, data fraud, data manipulation, assurance practices and business barriers such as financial services and third-party trust. VeChain secures data entry and removes the borders between businesses, financial services and data security.

VeChainThor Blockchain is VeChain’s public blockchain that is designed for mass business adoption of Blockchain technology to business owners. VeChain with its VeChainThor Blockchain has a vision to build a trust-free and distributed business ecosystem platform, which would enable transparent information flow, efficient collaboration, and high-speed value transfers.

VeChain’s consensus protocol is called Proof of Authority (PoA). It is made for VeChain’s design philosophy of governance model, which is: Neither total centralization nor a total decentralization is the correct answer, but a balance of both. Therefore, other mainstream protocols such as Proof of Work (PoW) and Proof of Stake (PoS) are not suitable for their system. Proof of Authority (PoA) is set in a way that there would not be anonymous block producers, but 101 known validators (Authority Masternodes) authorized by the VeChain Foundation and VeChain community. In order to become an Authority Masternode (AM) on the VeChainThor Blockchain, the individual or entity must disclose their identity and reputation by extension in exchange fo the right to validate and produce blocks. Each AM must go through a strict KYC procedure and comply with the minimum requirements set by the VeChain Foundation. AM stake their identities and reputation, which gives them an incentive to behave and keep the network secure.

Here are several main types of participants in the VeChainThor platform:

1) Business Owners – enterprises, individuals, organizations, departments of governments and regulators that build and run business applications on the VeChainThor Blockchain to provide products and services to users.

2) Application Service Providers – they help the business owners that do not have the individual adequate capabilities to build blockchain applications and services on the VeChainThor Blockchain.

3) Smart Contract Providers – enterprises or individuals, that provide technical services to build and run smart contracts for business owner

4) Infrastructure Service Providers – enterprises and individuals directly participate in the VeChainThor Blockchain and maintain full nodes running and ensuring the integrity of the network by generating and verifying blocks

5) VeChain Foundation – “the Foundation” is the centralized organization formed by the decentralized VeChain community to carry on day to day operations for developing and maintaining the VeChainThor Blockchain, community building and management, business engagement, technical research and design, public services provision, and so on. The VeChain Foundation is responsible for organizing and representing the entire VeChain community

6) VeChain Community – community that is formed by all entities who are willing to participate and contribute to the development of the VeChainThor ecosystem, rewarded accordingly, and categorized by different level of token holding as below after 1:100 token split when mainnet launches:

● Mjolnir (15,000,000 VET) and Mjolnir X Node (15,600,000 VET)
● Thunder (5,000,000 VET) and Thunder X Node (5,600,000 VET)
● Strength (1,000,000) and Strength X Node (1,600,000 VET)
● VeThor X Node (600,000 VET)

2. Use Cases

We can say it for sure that VeChain is project with thoughtfully designed real use cases for all kind of users. The whole idea behind the VeChain project is to offer solutions to provide trustless operations. They are enterprise-focused IoT and dApp platform with aim to connect blockchain technology and enterprises providing them infrastructure for using RFID and similar IoT technologies. That is why they have collaborated with the one of the world’s leading RFID solutions providers to boost their hardware department for VeChain specifically designed chips.

Some of the examples where VeChain is already tested and proven to be capable of performing tasks are:

a) Luxury & fashion
Prevent illegal overstock trading by embedding smartchips within luxury goods, so brands can monitor their sales channels in realtime. Meanwhile, consumers can verify the authenticity of the luxury products. VeChain puts control back into the hands of brands, making luxury trail transparent, seamless and data-driven.

b) Cold-chain logistics
VeChain’s cold-chain logistics solution uses proprietary IoT devices to track key metrics throughout the entire journey. VeChain embeds data management and sharing in every process, making cold-chain logistics transparent, regulated, secure and reliable.

c) Automobile
VeChain creates a digital passport of a vehicle recording all data including repair history, insurance, registration and even driver behaviour throughout its lifecycle. VeChain puts data into the hands of owners, making data management comprehensive, accessible and transparent.

d) Medical & healthcare
VeChain’s blockchain solution can track end-to-end medical devices production process. Besides, with the patient’s authorization, VeChain can help patients to securely share their biometrics data with their doctors to enable real-time monitoring. VeChain makes the production and use of medical devices safer, better regulated, efficient and reliable.

e) Liquor
VeChain created a tracking & authentication platform for wine bottles, data of the wine at every step of the production process was stored on the blockchain. It also allows logistic providers and distributors to store relevant data before it reaches its destination. This platform brings immense value and trust, and most importantly stems out illicit activities. Consumer rights are protected simply by scanning a QR Code or NFC Chip which provides authentic and valuable information to the entire timeline starting from the source, storage, and logistics process at the fingertips.

f) Agriculture
VeChain provides the solution of blockchain-enabled cloud services for the certification of environmentally friendly and organic agriculture products. Throughout the production process, IoT sensors and mobile devices feedback climate and soil conditions which are then updated into the cloud for real-time monitoring, this data is encrypted and immutable and at the same time, can be easily accessed by relevant parties with proper authorization and private keys. Data collection can help agriculture companies make better decisions. They can improve on the planting method, improve the quantity and quality of the crops and increase their product margins.

g) Logistics
Leveraging on blockchain technology, various parties in the logistics cycles can access information on a transparent and immutable yet very secure platform with a private key. In addition, logistics service providers can now manage goods at the granularity of single units for the very first time. The VeChain platform can provide customers with better services, accurate logistics information of each single product and this means there is potential for new logistics and business models to develop.

3. Team

Sunny Lu (CEO) – graduated from Shanghai Jiao Tong University, major in Electronics and Communication Engineering. He has been serving as IT Executive in Fortune 500 companies over 13 years. Also, he was former CIO/CTO for LV China and started VeChain project in 2015.

Jay Zhang (CFO) – worked for PwC and Deloitte as senior manager over 14 years. He has more than 14 years working experience over financial / accounting management, internal control assurance / advisory experience, an extensive knowledge of enterprise finance and business process management, regulatory requirements, trends of corporate internal controls and internal control framework, SOX / CSOX, enterprise risk management. His key role is to build up strong financial framework, corporate governance and accounting principle for Vechain business.

Kevin Feng (COO) – Graduated from Tongji University with a Bachelors degree in Management Information System. He has over 12 years experiences of consulting and assurance services in cybersecurity, privacy and emerging technology at PwC and he has been driving the development of blockchain services of PwC CN/HK region. In January 2018, Kevin joined VeChain as COO.

Jianliang Gu (CTO) – graduated from Shanghai University with master degree in Cybernetics. He was working in TCL communication technology as Technical Director. He has more than 16 years’ experience in both hardware and software of embedded system development and management.

Richard Fu (VP) – has over 20 years’ working experience in multinational enterprises such as Shangri-la Group and LVHM specializing in sales and marketing. He joined VeChain as director of PR and marketing.

Chin Qian (VP-Sales) – worked for HP from 2004 to 2016 and accumulated rich experience in marketing and project management. He joined VeChain in 2017 as director of business partner recruitment and management.

Bin Qian (Chief Blockchain Developer) – has over 10 years’ experience in Mobile application development industry, specializing in developing Internet applications based real-time communication system. He is definitely P2P network technology expert.

Peter Zhou (Chief scientist) – while working as a University of Kent’s postdoctoral researcher Peter was later on involved in European Commission and Academy of Finland funded projects as he gained tons of experience in research. As part of the revolutionary VeChain team, Peter Zhou is adding value to the project as the chief scientist. He is also a senior research scientist at the University of Oulu in Finland.

Steering committee members:

The Board of steering Committee is the governing Body of VeChain Foundation. It oversees the various functional committees within the foundation and represents the balanced interests of VeChain blockchain’s stakeholders as whole.

Advisors:

Pros:

a) Real and proven blockchain usage

b) Experts behind the project development with the clear vision

c)  Solid partnerships as DNV GL, PwC, Kuehne & Nagel etc.

d) Backed by well known Venture Capital firms as the DFJ

Cons:

a) Without real decentralisation due to known nodes identitiy which are chosen by VeChain Foundation

b) Large number of use cases which can lead to lack of focus

c) Strong competition in many of fields VeChain is working on (supply-chain, enterprise dApps…)

Potential risk Project Transparency** Token Liquidity Project Development Marketing and PR Decentralization

4

3

2.5

3.5

4

2.5

Overall Score*

3.25

Potential risk Project Transparency** Token Liquidity

4

3

2.5

Project Development Marketing and PR Decentralization**

3.5

4

2.5

Overall Score*

3.25

*1 – Very bad / 5 – Excellent
**Project Transparency has average mark due to not detailed roadmap regarding use cases

UPDATES:

02/09/2018 – Peoples Insurance Company of China (PICC), one of the largest insurer globally with $126 billion total assets, is opting to embrace blockchain technology with the help of DNV GL and VeChain

03/09/2018 – VeChainThor Mainnet update. Key updates include new features, bug fixes and performance improvements. More details at https://github.com/vechain/thor/releases/tag/v1.0.2