China and Cryptocurrencies
The strict stance by the Chinese government on cryptocurrencies is not a new feat to the cryptocurrency world. However, some big blockchain technology companies have continued to make alignment with this same government as regards the ground breaking future plans for the country. With the recent inclusion of VeChain by China into its many government proposals, one cannot but acknowledge the growing potentials of the VeChain, in becoming China’s main blockchain. VeChain is a blockchain service system, with a drawn out mission to build a trust free, distributed business environment for the enablement of the easy flow of information. Although the VeChain product has been around for some years, its recent inflow into the projects of the Chinese government is somewhat a milestone move. The VeCahin initially began as a supply chain company, using the blockchain technology as its platform, but it has since evolved beyond it. VeChain as a company is a blend of electronic technologies, making use of blockchain technoloy, coupled with their smart chip products in the tracking of items, throughout the cycle of these items.
To get a hold of how of VeChain works, here is real-world scenario:
If a drug company, with a patented vaccine for cancer, which is only manufactured in a particular country – let’s say China – needs to ship this vaccine across the world for the people that are with cancer. Vaccines as a drug have different, outrageous shipping, environmental and even timeline conditions. For example, the vaccine might have different shipping conditions, like the required temperature range, pressure gauge and the rest. Also, the originality of the drug is also a top concern. If anything goes wrong with any of these conditions, the results will be fatal to every stakeholder in the chain. And yes, something has been happening to these conditions. The vaccine market is saturated by counterfeit drugs, and most times drugs that are no longer effective as a result of the way that they are stored. VeChain solves this problem by allowing the company to allocate unique identity tags on these products, these tags which are smart chips are capable of storing and broadcasting information at any point in time. This information is however logged onto the VeChain blockchain domain, allowing the major stakeholders in terms of the manufacturer, the supplier, and the consumer access to the product and the way in which it is being handled.
VeChain and China
Apart from VeChain being used for such things as described above, VeChain, if all the deals with China pulls through has the potential of being the new Etherum, providing a platform that supports the functioning of decentralised applications (dApps). Also, in the automobile industry, the details of a car can be uploaded onto the blockchain by the manufacturer, with providence for data points concerning the insurance details, accidents and thefts, spare part replacement and services. China is the number one destination for Automobile manufacturing. Currently, VeChain’s most outstanding dealing with the Chinese government is the partnership at the national level; this partnership was made on the plan city of Guain. Also, it has notable two partners in the Chinese tobacco industry. With a market share of 41%of global cigarettes consumption, these companies are looking forward to dealing with their number problem in the industry; counterfeit products. President Xi Jinping in May 2018, after years of his government cracking down cryptocurrencies gave a green light concerning the development of new technologies such as artificial intelligence and blockchain technology.
The team at VeChain are committed to building a large network, a network that is made up of the big guns in various industries. The team, led by Sunny Lu, have in their ambitions, made known their vision for the VeChain blockchain technology. With the possibilities of this technology in a market like China, it is safe to say that there is no perfect combination as the VeChain and China romance, as far as blockchain technology is concerned. VeChain will avail investors with an open door policy into the Chinese economy, while at the same time boosting the economy of the people of China. And just maybe the VeChain and China partnership will open doors for other government partnership with the cryptocurrency company.