Counterfeit products plaguing the world
Ever wondered whether the product you purchased is real? With a growing volume of counterfeit products circulating around the world, how can you be sure that your product is real? Is your Rolex the real deal? VeChain (VEN) wants to make sure your stuff is legit.
Just look at the circulation of fake food plaguing China like the scandal that shook the world in 2008 – Chinese Milk Scandal [source]. Individuals with no morals used melamine in baby milk powder, causing the deaths of babies. Damage done to products can always be repaired or replaced but to children, to human lives? Seriously, not cool.
Blockchain to end all counterfeit
With digitalization of labeling and tracking of every physical asset, incidents like the Chinese Milk Scandal can be avoided. There is great market potential in VeChain solely because companies are willing to pay big money to invest in their blockchain technology. The global market loss from counterfeit products is close to half a trillion dollars a year [source]. Wow, damn we are all in the wrong industry!
Okay, what the heck does VeChain do? The simplest way we can explain it: When a product is created, it’s data is keyed into the system and no matter where the product goes, it can be tracked and verified.
For example, if you’re looking to buy a bottle of wine produced from a specific vineyard in France that costs $10,000 (that better be one tasty bottle of wine). When you intend to pay top dollar, you definitely want to make sure that stuff is real right? So this is how it works:
- Bottle is produced
- Bottle is tagged digitally into the blockchain
- Data of the bottle is decentralized, making it almost unhackable
- Data cannot be tampered or altered in the blockchain
- If the bottle can be traced in the blockchain, then that makes it a legit $10,000 bottle.
This is critical to companies as it impacts their business profits and reputation. It’s truly revolutionary and we’re seeing companies invest in VeChain because they only stand to gain. Here is a list of some of the companies on board right now:
Tackle illegal tobacco in China: NRCC Website
NRCC’s services the following industries:
- Government Administration
- Agriculture and Food
- Financial Services and Insurance
- Property Development and Construction
- Oil and Gas
- Energy and Electric Power
2. DNV GL:
Tackle asset tracking. $20 billion dollars revenue in 2016: DNV GL
Handling online banking product/policies: [Source]
Too long a read? Okay here’s the summary:
Global trade problem? VeChain is on it. Meaning companies and governments will have a need for their services. With giant companies jumping to invest in VeChain’s Blockchain-as-a-Service, you pretty much know where this is going.
Where do you think VeChain will be in five years time?