VeChain really is one of the projects that will surprise many investors within the cryptocurrency community. It is one of the select few projects that have a working use case with some serious real clients on board, however, the problem is not too many people actually know and understand the benefits that VeChain is targeting. This is largely due to the fact that VeChain is intended to target the business-to-business (B2B) sector more than the business-to-consumer (B2C) - although the entire process is to ultimately benefit the consumer.
The majority of people within the cryptocurrency space are retail investors and we really fail to understand the importance of knowing where our products have come from. With the ability to track the supply chain along every step will greatly reduce the number of counterfeit products for consumers and improve their quality and authenticity.
Partnership with Walmart
The giant VeChain partnership with Walmart is a great example of how VeChain is targeting B2B more than really targeting us retail consumers. The supermarket giant and the cryptocurrency project have recently joined forces to release the Walmart China Blockchain Traceability Platform - a platform design aimed to address the concerns regarding food safety in China.
The Chinese Walmart division decided to team up with VeChain and PWC (amongst others) to develop a supply chain management system that will track their in-store products along the entire production line. This will allow all businesses along the supply chain to know the authenticity and quality of their raw materials which will increase the safety for Walmarts end customer.
The project already has 23 products tested and listed to the platform with VeChain expecting that they will add a further 100 products by the end of the year. The customer is able to scan each product and receive detailed information such as the source of the traded product & its original location, the route it took along each hop of the supply chain and inspection reports. With this information (and much more) the customer can purchase Walmart’s products with complete comfort in knowing the entire lifecycle of the product.
So Why Is The Price Not Moving??
IF you were to take a look at at a VeChain chart, such as the one above, you will see that price action has barely even moved during 2019. Although typical market dynamics are always at play - such as the fact that the entire altcoin industry is being hammered as BTC continues to increase its dominance - VeChain still remains a sleeper IMO.
I think that many people know about VeChain and their aim to create a supply management system, however, I do not think that that many of these people truly UNDERSTAND the impact that a decentralized supply management system will have on our society.
We all understand the impact of Bitcoin and taking the power of finance back into our own hands through a decentralized monetary system, not influenced by any governmental bureaucracy. This is the reason why Bitcoin is rocketing ahead of the rest of the industry - because people UNDERSTAND the impact it will have. But let’s not fool ourselves, it took a VERY LONG TIME to reach where we are. It took many years for investors to truly understand Bitcoin and blockchain technology. It took even longer for the financial institutions to understand it.
The case for VeChain will be very similar. At this moment in time, businesses are only beginning to gain some form of understanding of the impact that this will have on their respective industries. In the supply chain industry, businesses are starting to realize that verifying the authenticity of their products will only help to increase their bottom line as confidence in their products will continue to grow. With players such as Walmart and PWC getting involved now, it's safe to say that the role of decentralized blockchains will have on the supply chain management industry is starting to gain some solid traction.