VeChainThor Blockchain Launch: From ETH to a ‘New World’
Aside conjectures that it will be among the top five market cap cryptos soon, not so much changed immediately in the price of VeChain (VEN) as the platform mined its first block successfully to launch the VeChainThor Blockchain on Saturday June 30.
However, going by the disposition that the launch has an historic tendency, this will likely change soon even though the entire crypto market is not expected to rise from its bearish state in coming weeks. As at the time of writing, a couple hours after the VeChainThor launch, VEN has only risen by about 6% ($2.85).
It uses a twin token system: its VET asset functions as a store of value while VeThor serves as the underlying cost of using the blockchain. Currently an ERC20 token and running on the Ethereum blockchain, the Singapore-based platform plans to move from the Ethereum blockchain to the VeChainThor blockchain which has been dubbed the one to change the world. Its founder, Sunny Lu, sent a valedictory message to its platform’s former host, Ethereum, via Twitter saying they are “…marching to the new world! Thank you @VitalikButerin and entire ETH team and community.”
The ‘new world’ ought to be something different in many ways.
VeChain should be able to boost the adoption of blockchain technology especially by businesses. Putting itself almost side by side with Ethereum, and with a promise to address issues facing public blockchains like Ethereum and Bitcoin e.g. economic model issues, the project wants to be the platform for business. In fact, it came up with a solution that reportedly solves the problem that prevent large corporations from adopting blockchain: the VeChain Multi-Party Payment Protocol (MPP) which enables smart contract developers to create rules about who pays the transaction fee.
The platform seeks to offer Blockchain-as-a-Service to enterprises that will enable them design tailor-made solutions that will help them to overcome their existing business challenges. It recently co-developed one of such solutions for the transport and logistics division of Germany’s Deutsche Bahn, DB Schenker, which has a network of over 68,000 logistics experts in 2,000 locations for its supply chain management solutions and transport logistics around the globe.
If VeChain can be used by many companies as proposed, it will be the first blockchain platform to demonstrate actual usage of the technology on a large scale. This moves the trend from a conceptual stage to actual usage by prexisting businesses. It is presently going in the same direction with EOS and Yocoin which have both declared their independence from Ethereum.
As Initial Coin Offerings (ICOs) created demand as well as visibility for ETH, the VeChain platform may achieve a similar feat and be even better as it runs ICOs with more real world uses. VeChain will be launching several ICOs on its platform. This is expected to lead to a demand for the VEN token. Though the ICO craze between 2016 and 2017 should not be expected, not many ICO startups will be able to dump their crypto funds to finance their dApps in the future due to waning market interest and the restriction on the participation of investors from certain countries. However, the projected demand for VeChain will skyrocket with little or no possibility of a halt and deflation.
Exchanges are expected to begin swapping VEN for VET by mid-July. Only converted VET can generate VTHO which enterprises can use for their transactions.
Though Buterin has not been linked to any comment about VeChain, a co-founder of Ethereum, Anthony Di Iorio, has noted that his biggest stake is in two Chinese projects which include VeChain.