The VeChain team and the VeChain blockchain and platform has been running for more than
two and half years.
During our journey, we have met many people who share our goals. Our business partners, both
enterprises and individuals, dare to explore this new technology with passion, dreams, and
strong beliefs. Moreover, we have accumulated experience with use cases from different
industries to adjust and resolve any necessary corrections during this process. We will continue
defining the right path to take when implementing this “disruptive technology” that will change
Our original vision has never changed. The dream is still the same as before, that is:
Building a trust-free and distributed business ecosystem platform to enable
transparent information flow, efficient collaboration, and high-speed value
Nine months have passed since the release of the VeChain ICO. The vision stays the same but our
various missions have been reshaped gradually along with the rapid development of the entire
VeChain aims to be THE PLATFORM to support blockchain-based business applications offering
real economic and social value.
After a comprehensive study of existing public blockchain platforms (including Ethereum) and
countless discussions and debates with multiple business partners, we identified reasons in
which enterprise and large consumer-focused applications are not yet on blockchain. The largest
identified hurdles are NOT about the technology, but instead are related to other critical aspects
of the blockchain’s operational design.
We’ve identified four key hurdles to enterprise adoption of blockchain.
First, most public blockchains lack a proper governance model. Although decentralization is
the well-known cornerstone of blockchain technology, it has obvious defects leading to
inefficiency and poor capacity to conduct fast iterations. We believe scalability issues relating to
blockchain are not linked to technical problems but to consensus concerns of governance. It is
hard to imagine a world-wide used “software” or “system” like Bitcoin, with a valuation of more
than 140 billion dollars, conduct very few upgrades in the past 10 years. Of course, Satoshi’s
original vision was brilliant, and the Bitcoin blockchain functions as originally designed and
intended. But as the use cases for blockchain have evolved, and continue to evolve, changes to
the features and functions of a blockchain are inevitable. A proper governance system, with
transparency and operational efficiency, will enable continual and rapid innovation.
Second, the economic model of almost every existing public blockchain directly or indirectly
links the transaction costs to the total valuation of the respective blockchain, resulting in
unpredictable and unnecessarily high transaction costs. In most public blockchains there exists
a paradox: the greater the use of a blockchain, the higher the value of tokens, but additionally the
higher the cost to use that blockchain, which discourages use and lowers total network value. No
business owners would accept running applications or generally running a new business on
blockchain, or anywhere, at an unstable cost. An additional complication is present. Token
holders want the value of a token to increase, and enterprise users want it to be stable and/or low.
A proper economic model has to be introduced to the next generation of public blockchains in
order to resolve these conflicts.
Third, an ecosystem will require many participants other than just technical blockchain experts.
As a matter of fact, more business players than expected care about appropriate solutions other
than merely technology. Usually, they expect to see solutions require combinations of a
number of technologies such as blockchain, IoT, Big Data and A.I. Current blockchain
ecosystems also require each business owner to be motivated, deeply involved and innovative to
create new business values out of blockchain technology. The current blockchain world lacks
those who can connect the technology to business use cases by providing such solutions.
Therefore the common infrastructure services natively on blockchain must allow technical and
business developers to assemble solutions to add value to their business.
Last but not least, the capacity to comply with regulation and changes will be one of the
key requirements for any utilized blockchain solutions. This is necessary as regulators and
governments follow the massive adoption of blockchain knowledge and understanding by the
general public and business owners.
To address all the above, VeChain has created the VeChainThor Blockchain. This innovation
represents the next generation of public blockchains, called Blockchain X. It includes the
following key features:
1) New Governance Model
2) New Economic Model
3) Regulation and Compliance capabilities
4) VeChainThor Mainnet and Matching Infrastructure Services