VeChain Partnerships and DApps – Leading Chinese and Global Companies
VeChain’s (VEN) mission has always been to become the go-to blockchain for enterprises. Sunny Lu and his team are already actively working towards achieving this goal, with VeChain’s partnerships being among the most impressive in the crypto ecosystem. Most concern the implementation of blockchain-based solutions in order to improve transparency and traceability of products within the supply chain industry. However, the scope of VeChain’s partnerships goes beyond supply chain as it includes companies operating in the real estate, financial, tobacco, and automobile industries, among others.
1. DNV GL – Certification
The partnership between VeChain (VEN) and DNV GL is the cornerstone of VeChain’s strategy. DNV GL is a global quality assurance and risk management company – leader in its field. The company provides companies with audits and advisory services, software solutions, as well as providing them with certifications which are crucial to their operations. Not only does the company have a proven record of know-how, but also has a strong focus on offering innovative solutions to their clients. For instance, in October 2017, the company issued more than 50,000 electronic certificates (80% of the new issuance), with regulators from 52 “states” recognising these as if they were paper-based.
Ref: DNV GL
On the 7th March 2018, DNV GL announced the implementation of VeChain’s first DApp, My Story, within their offering. My Story, targeting the Italian wine market at first, allows consumers to see “the full history of the products and their journey from grape to bottle” simply by scanning a QR code glued onto bottles, using their smartphones. The implementation is said to start before the end of July, with other industries following soon after. Additionally, according to DNV’s Digital Transformation Director, My Story will be available within DNV GL’s data management platform – enabling a frictionless use of blockchain technology by DNV’s clients as if they were using traditional SaaS, which lines up well with VeChain’s vision – the benefits of blockchain without being fully aware you’re using it.
The partnership with DNV GL seems to be more than a typical partnership as the collaboration also regards the creation of new business opportunities for DNV. As an example of the close relationship between both companies, VeChain aims at creating a Carbon Bank while DNV released a statement saying that they launched a certification framework for Carbon Capture and Storage at the beginning of the year.
2. PWC – Audit and Advisory
In May 2017, PwC China and PwC Singapore incorporated VeChain into their incubation programme. Through the programme, VeChain has access to PwC’s expertise and advisory for its growth acceleration in South East Asia (a region with an enormous growth potential). However, the partnership goes beyond a sole advisory role as PwC presents VeChain with clients and promotes VeChain’s solution to their clients.
For instance, fake alcohol is a real problem in China. Not only does it hurt businesses, but more importantly harms people’s health as well. To fight the problem, PwC China introduced DIG to VeChain to use the My Story DApp in China. To understand the scale of this “partnership”, DIG handles 30% of the wine distribution in China. In the same way, just as for the DNV clients, DIG clients will be able to ensure that their wine is genuine.
3. Kuehne & Nagel – Supply Chain and Logistics
Swiss-based company K&G is the biggest global sea freight forwarder in the world, and second in air cargo. The firm accounts for approximately 10% of the world’s air and sea freight business and has over $20 billion revenue, a gross profit of 1.665 billion in Q1 2017, and employs over 76,000 employees.
Kuehne asked VeChain to “smartify” its shipping parcels, enabling customers to track their parcels in a transparent way. We already wrote an extensive explanation of the use of blockchain within the supply chain and logistics industries; which we can recommend you read up on if you want to have more information concerning how VeChain aims to help K&N.
4. The Chinese Tobacco industry
VeChain Partnered with the two bodies regulating the tobacco industry in China: the China State Tobacco Monopoly Administration, and the China National Tobacco Corporation. To have an idea of the importance of these bodies, China accounts for 30% of the world’s consumption of cigarettes. The problem is that fake cigarettes plague the country – this Slate article gives a good understanding of the magnitude of the problem.
VeChain will help the two bodies mentioned above by providing them with a proof of origin and technologies to track counterfeit tobacco through the entire supply chain. Using the DApp My Stories, authorities may require genuine cigarettes manufacturers to print QR codes on cigarettes boxes. That way, if genuine cigarettes are replaced with fake ones, the point of failure will be pinpointed and authorities able to take measures.
By enabling smokers to track cigarettes with blockchain technology, the Chinese state may ensure that fake cigarettes would not be sold as if they were genuine, reducing the amount of “toxic” product inhalation by users.
5. BitOcean – Financial Services
Probably the first ICO to be launched on the VeChain Thor blockchain, BitOcean is a cryptocurrency ATM solution operating in Japan. The company has been fully licensed by the Japanese Financial Services Authority (FSA), enabling the company to accept fiat deposits and withdrawals. On its website, the company states that they are able to connect any partnered exchange through APIs to their ATM network.
Nothing has been disclosed so far, despite pictures showing the integration of VEN within BitOcean’s ATM. However, with the CEO of BitOcean being an advisor to VeChain, and both companies stressing the importance of being highly compliant with the law, we see BitOceon becoming the link between VeChain and the physical world, adding liquidity and ease of use to VeChain solutions.
6. Fanghuwang – Financial Services
Fanghuwang provides collateral backed loans (such as real estate) to small and medium-sized enterprises (SMEs) using new technologies such as cloud computing, AI, and Big Data in order to match financing resources. The implementation of these technologies enabled the company to reduce the time to grant a loan from 1 month, using traditional services, to less than 7 days, while in the meantime reducing costs by 70%. Through this partnership, VeChain will develop solutions to enhance the client data collection system, data quality, and data shareability, in order to ultimately lower the costs of obtaining and using the data.
To that purpose, the team developed another DApp, VeVID. This application will provide a Digital ID and KYC tool to companies using the VeChain blockchain. In an official statement, VeChain writes that Fanghuwang will transfer its current KYC/AML process into the VeChain Blockchain – enabling the company to cut overhead costs and speed up the client verification process. Interestingly, VeVID is being built with BitOcean in mind – meaning that in order to use BitOcean ATMs and other services, users will need to verify their ID and pass the KYC requirements into VeVID so will VeChain masternodes holders.
7. Others: Real Estate, Art, and Automobile industries.
Another partnership disclosed in Mid-April is the one with INPI Asia. The company develops Nano chips with photonic properties, called NDCode. The difference between those chips and the ones currently being used, such as RFiD and NFC, is that they can resist high temperatures, are more easily identified by scanners (even when damaged), can be used in any type of environment, and are invisible. Due to these properties, the chips might be incorporated into pieces of art, which would be altered using other solutions – enabling art to be tracked, authenticable, and more easily tradeable.
VeChain also partnered with Yida Group, one of the largest real estate development company in China. The aim of this partnership is to render paper-based documentation obsolete. This partnership goes in line with VeChain’s work in the development of smart-cities; as the blockchain is a perfect complement to the IoT industry due to its value sharing, transparency, privacy and security characteristics.
Finally, VeChain entered the automobile industry by partnering with E-grid consulting, a company providing its client with ERP, SCM, and CRM solutions in regards to their IT and Big Data services. Not only will VeChain enable proof of origin tracking of the car, making sure that car reports are not falsified, but will also allow for sharing and calculation metrics used by car manufacturers to increase their business intelligence. Ultimately, the VeChain Thor blockchain will enable car insurance companies to provide clients with highly customizable packets in regards to their driving habits, and the car they possess and its history.
All the companies we mentioned above operate in different industries – demonstrating that VeChain’s use cases go well beyond the supply chain industry, as is often believed. The fact that many well-known and leading companies have decided to trust and collaborate with VeChain demonstrates that not only does blockchain technology have a lot of potential, but also that VeChain is providing solutions needed from businesses.
We did not mention all partnerships, nor industries, as the list for VeChain is highly extensive. Worth mentioning as well are the trials and incubator programs that are also being performed, such as the one with BMW and with LVMH (the motherhouse of Louis Vuitton).
Now, all we have to do is to sit and wait for the mainnet to be launched. We are thrilled to see how the solutions developed by VeChain will evolve and run. The two Dapps (VeVID and My Story) will be the first to be used, so we are truly excited to scan our first bottles of wine and see all their details and characteristics.
Disclaimer: We are long VEN.
Jacek graduated with an M.A. in Finance from the Shanghai University of Finance and Economics. He lived in Europe and Asia, and always loved to dig into papers and research projects to really understand the key drivers and trends. He’s passionate about blockchain’s business application, the sharing economy, and FinTech.