VeChain, a fairly popular phenomenon in the global blockchain landscape, will integrate the DeFi (Decentralized Finance) functions into its second official release version.
According to VeChain 2.0 White paperThe smart contract, released earlier this month, aims to offer revolutionary opportunities for developing decentralized finance and what the company calls “open finance.”
What is VeChain?
VeChain is an Ethereum-based blockchain smart contract that is operated within the framework of the “proof of authority” consensus. In other words, the VeChain Foundation can select block issuers and has significant control over the growth of the blockchain network.
While this is one of the less popular consensus models, VeChain has drawn a lot of attention in the supply chain management and operations space. The platform is operated using two different blockchain tokens – the VeChain Token (VET) and VeChainThor Energy (VTHO). While VET is used to facilitate value transactions, VTHO is the powerhouse that can be used to conduct those transactions.
With the release of the second version of the VeChain platform, the VeChain Foundation outlines several important goals for the development of the entire network. According to the whitepaper, the VeChain Foundation has several areas of interest, including modernizing financial operations around the world.
The first main goal of VeChain 2.0 will be to use that Advantages of blockchain technologyto provide a “transparent and trustworthy data platform” for companies and organizations in the food industry. The aim of these efforts is to provide customers with relevant product data through QR scanning and blockchain-based data storage platforms.
Further goals of the updated VeChain platform are optimizations for the automotive sector, fraud prevention and the creation of a blockchain-based insurance platform called “My Story”.
VeChain 2.0 and decentralized financing
In financial terms, VeChain 2.0 has even bigger plans. In the whitepaper, the VeChain Foundation outlines a number of dysfunctions in the way funding is currently working.
One of the greatest advantages of VeChain is the fact that the blockchain technology can lead to an unmatched cost reduction in the financial sector. While many attempts have been made to implement decentralized financing so far, there are serious regulatory hurdles to global adoption of this model.
For this reason VeChain “believes more in“ Open Finance ”. The aim of VeChain 2.0 is to offer banks and financial companies the opportunity to use blockchain technology and the VeChain platform to bring efficiency and transparency to their business activities.
To achieve this, VeChain 2.0 will develop a settlement layer consisting of a series of fiat-backed stable coins, create a data storage layer and facilitate the development of financial solutions for businesses through their platform.
These are important goals, of course, and time will tell if VeChain 2.0 will be able to achieve all of them. Hopefully there will be a boost in the right direction and open finance will bring us one step closer to truly decentralized financial services.