In the sea of cryptocurrency projects, it’s almost impossible to determine winners and losers. VeChain (CCC:VET-USD) could end up on either side, so I won’t speculate.
Rather, I’d like to introduce readers to what the project hopes to accomplish. It should interest some to know that prices have increased by approximately 1,400% over the last year.
On the one hand, that could indicate that the company is building tangible future utility. Yet, in the world of crypto we’ve too often seen that utility and price have zero correlation.
So, let’s see where VeChain falls within that spectrum.
Supply Chain Certification
Supply chain certification is one of the most promising areas for blockchain technology. The basic premise is that the blockchain can be used to effectively track the production of any given product down to its constituent parts.
That will ostensibly give consumers much greater insight into the origins of the products they use. One can envision that product safety will increase as a consequence.
With a more detailed blockchain to track a product it would be much more difficult for harmful ingredients or defective parts to find their way in.
VeChain is making headway in supply chain certification, particularly in the Chinese health food sector.
On Oct. 28 VeChain announced that it has teamed up with RECIPE. RECIPE is seeking to capitalize on an increasingly health conscious Chinese population. RECIPE is undertaking research into low-carb foods that appeal to the Chinese consumer.
The firm is developing a menu of items based on original Chinese recipes and a low-carb nutritional profile.
VeChain has developed what it refers to as a ‘Food Safety SaaS Service’ which utilizes blockchain technology. Ostensibly the service will bring more transparency to the menu items RECIPE develops.
The broad catalyst underpinning the shift is an increasingly health-conscious Chinese consumer. In 2020, health food sales increased by 12.4% in China.
The “Food Safety SaaS Service” could see success in several ways. It could simply gain a strong foothold in China. In that case it might find success with RECIPE, and then add more users in that large and growing market. Or it could add projects elsewhere.
But in either case, traceability will continue to be a focal point among blockchain projects moving forward.
VeChain and SDGs
SDG is an acronym that stands for Sustainable Development Goals. VeChain is focused on SDGs as it has recently named Antonio Senatore to the post of Head of Technology for SDGs. Senatore was formerly the Global Blockchain CTO at Deloitte.
VeChain has a history of working to improve sustainability. In 2018 VeChain launched the first Digital Carbon Ecosystem Project. The company has since provided blockchain sustainability solutions to firms in Europe and China.
Senatore will oversee the 17 SDGs that make up VeChain’s sustainability development agenda. It looks like VeChain is an early candidate to take the lead in carbon emissions related blockchain technology with the move.
Given what I’ve just written about, I think it’s fair to say that VeChain is developing a brand centered on sustainability and transparency. Its blockchain technology is being leveraged toward traceability of ingredients and environmental concerns including carbon emissions tracking.
I have no idea what that will mean in terms of valuation moving forward, but it’s fair to say that there is a clear market for the utility that VeChain provides.
VeChain already boasts an impressive list of partners. That list includes Walmart (NYSE:WMT) which uses VeChain to trace its food supply chain.
What to Do
Investors must give VeChain credit for building a clearly defined platform. It is a breath of fresh air from the perspective that its mission is clear.
Whether it rises or not, I simply couldn’t suggest. The point is that those looking to invest in crypto and sustainability tracing could at least consider VeChain. That’s much better than nay number of other crypto projects which seem aimless by comparison.
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Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
