Before any conclusion below my own research, through chatgpt.

1. Origin and Foundation

VeChain was founded in 2015 by Sunny Lu, former CIO of Louis Vuitton China, with the goal of applying blockchain technology to solve real-world problems in supply chain management. His vision was to use blockchain to ensure transparency, combat counterfeiting, and increase logistics efficiency.

At the time, VeChain focused on offering enterprise solutions, allowing products to be tracked throughout their production and distribution chain, ensuring authenticity and quality.

2. The Ethereum Network and their VEN Token

Based on Ethereum: Initially, VeChain was based on the Ethereum blockchain, and its native token was VEN, which followed the ERC-20 standard. Purpose of the Token: VEN was used as a unit of value in the VeChain ecosystem, mainly to pay for the services offered by the platform, such as product tracking, certifications, and blockchain solutions for companies.

3. Initial Partnerships

From the beginning, VeChain has sought to collaborate with large companies to demonstrate the utility of its technology:

Luxury: Worked with fashion and wine brands to authenticate luxury products and combat counterfeits.Automotive: Partnered with auto companies to track parts and improve maintenance processes.Food and Healthcare: Implemented solutions to track food and pharmaceutical products, ensuring safety and compliance.

These early partnerships gave the project credibility, highlighting its real-world potential.

4. Growth and the Need for Independence

As the project grew, challenges arose:

Dependence on the Ethereum blockchain: The network had limitations such as high transaction fees and low scalability, making it difficult for VeChain to expand. Need for a sustainable economy: The ERC-20 model did not fully meet the needs of a broad enterprise ecosystem.

Therefore, the team started developing their own blockchain, tailored to their specific needs.

5. Transition to VeChainThor (VEN to VET Swap)

In 2018, VeChain launched its proprietary blockchain called VeChainThor, marking the transition:

Token Swap: VEN was converted to the new VET token at a ratio of 1 VEN = 100 VET. This change was intended to increase liquidity and facilitate microtransactions in the ecosystem. Dual Token System: With the launch, the ecosystem began using a two-token model: VET: Represents value and is used as the main currency. VTHO: Gas to pay for transactions on the blockchain, generated by holding VET.

  • Legacy of the VEN Era

The VEN era was marked by a focus on establishing the foundation of trust and credibility for VeChain. During this period:

The team built strong partnerships. The project stood out for offering real solutions at a time when many others focused only on speculation. It demonstrated the viability of blockchain for companies.

VEN is quoted at US$ 21.80. (source CoollwalletPro) - However, it is out of circulation on the ERC-20 network.


-------------------------------------------------------------------------------------------

6. Initial Objective and Solutions Offered

Since its founding, VeChain has focused on solving specific problems faced by industries. Here are some areas of focus during the VEN era:

6.1. Supply Chain

  • VeChain used blockchain and IoT (Internet of Things) to track products throughout their journey, from producer to consumer.

  • For example:

    • For wine: VeChain has worked with brands to add RFID (Radio Frequency Identification) chips to bottles, allowing consumers to verify the authenticity of the product.

    • For automotive parts: Blockchain was used to track the origin and quality of parts, helping with maintenance and combating counterfeit parts.

6.2. Combating Counterfeiting

  • Sunny Lu saw a huge opportunity in the luxury goods sector, especially given her history with Louis Vuitton China.

  • VeChain helped brands protect their products against counterfeiting by ensuring that consumers could verify the authenticity of products directly through blockchain-based solutions.

6.3. Health and Agriculture

  • VeChain has implemented systems to track medicines and agricultural products from production to delivery, ensuring that quality standards are maintained and that consumers receive genuine and safe products.

7. Strategic Partnerships

Prior to the swap, VeChain had already established significant collaborations, which were crucial to its credibility and market adoption.

Notable Partnerships:

  • PwC (PricewaterhouseCoopers): One of the largest consulting and auditing firms in the world. PwC helped VeChain expand its solutions to global corporations.

  • DNV GL: A global certification company that used VeChain to track and certify products, ensuring compliance with industry standards.

  • Renault: In the automotive sector, VeChain has helped create a digital car maintenance ledger, tracking the entire history of repairs and services.

  • China: VeChain had strong support in China, collaborating with local companies and regional governments on blockchain initiatives.

These partnerships gave the project credibility during a time when many blockchain startups faced skepticism.

8. Differentiation Strategy

VeChain, even before the swap, already differentiated itself from other cryptocurrencies by:

  • Corporate Focus: Unlike many projects that targeted the consumer or financial market, VeChain had a clear focus on business solutions (B2B).

  • Customized Solutions: Offered a combination of blockchain, hardware (IoT sensors) and software, allowing complete integration with companies’ operations.

  • Experienced Team: Sunny Lu and her team’s leadership brought a combination of technology and business experience, which attracted great partners from the beginning.

9. Community and ICO

  • VeChain held an ICO (Initial Coin Offering) in August 2017, raising approximately $20 million.

  • VEN has started to gain popularity among investors, especially due to its partnerships with renowned companies.

  • The VeChain community grew rapidly, attracting supporters who believed in the potential for real-world applications of blockchain.

10. Transition to VeChainThor $VTHO

While the VEN period was essential in laying the foundation, Ethereum’s limitations motivated the team to create their own blockchain:

  • Reasons for the New Blockchain:

    • High fees on Ethereum.

    • Insufficient scalability for corporate use.

    • Lack of flexibility in the design of tokens and smart contracts.

  • Swap Planning:

    • In 2018, the VEN to $VET swap was carefully planned, with support from exchanges like Binance ensuring that users could make the transition seamlessly.

    • The launch of VeChainThor marked a new era, enabling features such as proof-of-authority (PoA), dual-token economics, and increased customization to meet enterprise needs.

11. Post-Swap Impact

  • Credibility: The transition to a proprietary blockchain has cemented VeChain as a leader in enterprise blockchain solutions.

  • Expansion of Partnerships: The new model allowed for greater flexibility and attractiveness for global companies, resulting in even more significant partnerships after 2018.




Partner companies that use the VET blockchain.