VeChain: how the crypto project solves problems in the supply chain

COVID-19, the war in Ukraine, inflation, and cybercrime are putting our supply chains under enormous pressure.

COVID-19, the war in Ukraine, inflation, and cybercrime are putting our supply chains under real stress. But it's not all bad news for the crypto space. How can projects like VeChain profit from these problems?

As a global importer and exporter, Germany is currently feeling the effects of several disrupted supply chains. This is due to the COVID-19 crisis, the war in Ukraine, and the growth of cybercrime leaving their marks: consumers face empty shelves and builders are seeing delays. The German Economic Institute estimated the costs from disrupted supply chains and high energy prices at about 120 billion euros.

For the crypto space, and especially VeChain, these problems present an opportunity to showcase its benefits.

Here's how crypto helps with supply-chain confusion

VeChain is one of the oldest blockchain projects offering supply-chain and data-management solutions. The Chinese company was founded in 2015 by Sunny Lu and Zhang and is used internationally by more than 300 companies. These companies rely on the VeChain ToolChain as an enterprise application platform.

Companies like Walmart China track their products along the supply chain to build a database. To do this, the company integrated its own tracking platform on the VeChain ToolChain. Manufacturers and suppliers share the data, so customers only need to pull up product information via a simple QR code.

BMW has been partnering with VeChain on a digital vehicle ID since 2019. The pilot project is called "Verify your Car." The badge is meant to transparently track the vehicle's origin by giving the car a unique VeChain ID and placing connected smart IoT devices in the car. Each time, for example, a battery is replaced on the secondary market, the data is automatically sent to the VeChain Thor blockchain.

In short, you get an up-to-date database of the car—from production to scrapping.

Other well-known industrial partners like Bayer in pharma or LVMH, the parent company of Louis Vuitton, are also partnering with VeChain on tracking solutions.

Besides blockchain and software, VeChain also offers suitable hardware products via NFC chips. NFC refers to contactless data transmission via electromagnetic waves. A fashion brand can, from the start of production, embed such NFC card chips directly into a luxury handbag.

Each participant in the supply chain can then query real-time information about the bag, such as CO2 emissions during production and transport, brand authenticity, or production location.

This gives consumers more visibility into the whole process, which ultimately boosts brand trust.

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