Founded by Sunny Lu, the former Chief Information Offer (CIO) of Luis Vuitton China, VeChain is a blockchain that was created back in 2015 in Shanghai. As per Lu, the VeChain blockchain platform was created and designed to enhance the channeling efficiency, business processes, and supply chain ethics by gathering useful data shared through the most efficient mediums.
At present, the blockchain industry is perceived as a means of financial assets making and boosting technology that has attracted millions of users over the course of time and invest their money on the cryptocurrencies of their liking. However, VeChain diversifies itself as a blockchain that tends to study the already operating or upcoming blockchains to identify any bugs, flaws, and gaps in the information gathering, sharing, or securing the assets of the investors and propose recommendations in order to improve the performance of the blockchains. Based on this, VeChain tends to refer to itself as a blockchain-as-a-service (BaaS).
There are many countries, which at present are skeptical about adapting the cryptocurrency and blockchain technology in boosting the economic performance and investments in their country. The reason why countries remain skeptical is because of the decentralized nature and fear of cyber-attacks on blockchains and crypto-assets. This is the exact perception that VeChain is determined to change demonstrating to the countries and big financial investors to see how easy and cheaper it would be to make international investments, transactions and payments, if the blockchain technology was adopted by these countries.
At the start, VeChain was launched on the Ethereum blockchain platform and then went onto developing its own blockchain, known as VeChain Thor (VET) that reverted back to its initial name as ‘VeChain’ after going through rebranding in 2018.
Similar to the old-school blockchains, VeChain also practices the Proof of Authority (PoA) consensus protocol and allows its users to create individual nodes, this is commonly referred to as Masternodes (AM) to make changes to the chain. However, the steering committee of VeChain requires the users to reveal their identity and reputation to the VeChain authorities to become validators or Masternodes.