VeChain (CCC:VET-USD) has been one of the more popular cryptocurrencies in the past year, rising 500% since the start of the year. However, it’s down sharply from all-time highs set in the spring, losing more than 30% of its value since April.
Nevertheless, VeChain is unique as it provides real-world utility, which is unique to other networks.
VeChain went through a major rebranding process in 2018 and is now all about supply chains. Apart from the VET token, the network also includes the VeChainThor Energy (CCC:VTHO-USD) token. Moreover, similar to most cryptos, VeChain’s supply is limited to 86.7 billion tokens, which have all been minted.
Despite the recent drop in its price, VET-USD has a health growth runway ahead with its enterprise-focused blockchain solution.
Most cryptos facilitate high-speed transfers and collaboration. VeChain offers innovative ways for information to flow, which has proven to be enticing for its customers. Most of the network’s use cases involve the end users’ ability to track products and conduct quality assurance effectively
Through the VeChain blockchain, users can assign unique IDs to different commodities. Companies can effectively track different commodities by embedding their IDs in a QR code. Due to the convenience of the model, several quality assurance companies are opting for blockchain solutions. VeChain currently presents the best enterprise-focused solution, promoting ease of use and offering a highly robust solution.
VeChain’s unique blockchain-as-a-service model has proven to be incredibly successful, and it so far attracted several high-profile partners. Arguably, the biggest name in its customer list is the retail giant in Walmart (NYSE:WMT).
In 2019, Walmart began its relationship with the VeChain Foundation in streamlining its product management using its blockchain network. The partnership was explicitly for Walmart’s stores in China. Apart from Walmart, several other big names, including PricewaterhouseCoopers, Grant Thornton and others are part of VeChain’s illustrious customer list.
The foundation also started working with freight-forwarding giant Kuehne & Nagel to streamline its parcel tracking process. Moreover, the foundation is also working with French automobile company Groupe Renault in developing a digital car maintenance ledger.
Massive Opportunities in IoT
VeChain is perhaps the best example of users who can benefit immensely from a marriage between distributed ledger technology (DLT) and the Internet of Things (IoT). The IoT market has massive potential to grow and is currently still in its infancy.
VeChain’s network’s potential to be effectively integrated with a variety of IoT technologies is incredible, especially in the supply chain management realm. There are many opportunities for different enterprises to streamline their operations and become more productive using the network. Chinese companies have been the first to jump on to the new trend. QR codes and the IoT niche are of much more importance in China than in the United States. However, if companies can deliver measurable efficiencies and meaningful improvements in their results using VeChain, the network will likely go mainstream.
Naturally, crypto investors are bullish on the ability of crypto networks to provide real-world value, and in this regard, VeChain ranks right up there with the top cryptos.
Bottom Line On VeChain
VeChain offers a unique blockchain solution that successfully targeted the supply chain niche. I expect more companies to join its fast-growing customer list and use the network for meaningful improvements to their bottom lines.
Moreover, it currently has a competitive advantage over its peers by specifically targeting business supply chains, which will pay dividends down the road. VET-USD has a bright future ahead and provides real-world utility, which most cryptos lack at this time.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.