VeChain Adopts New Strategy as Platform Hosts its First ICO

VeChain Adopts New Strategy as Platform Hosts its First ICO

The VeChain Foundation today announced a new white-paper with “updated governance structure, economic model, and new use cases.

 According to the new white-paper, the company’s vision remains unchanged, to build “a trust-free and distributed business ecosystem platform,” one which can “enable transparent information flow, efficient collaboration, and high-speed value transfers.

However, adapting to a constantly changing environment has meant that “our various missions have been reshaped gradually along with the rapid development of the entire blockchain industry.” 

According to VeChain’s analysis, there are four factors which get in the way of blockchain adoption at enterprise level, and VeChainThor has been developed around satisfying these needs.

Enterprise So Far Slow to Adopt Blockchain

First, though a large part of the appeal of blockchain is its decentralization, that can lead to “inefficiency and poor capacity to conduct fast iterations.” Though the white-paper describes Satoshi’s vision for Bitcoin as “brilliant”, it notes that the number of “use cases for blockchain have evolved” and “changes to the features and functions of a blockchain are inevitable.

Secondly, VeChain says that the economic model behind most blockchains gets in the way of their widespread adoption, particularly by business. Transaction fees are “directly or indirectly” linked to the total valuation of the blockchain, which leads to “unpredictable and unnecessarily high transaction costs.” Businesses will not accept this instability. There is a further tension in that token holders want the price to increase, while businesses would like it to stay cheap, or at least stable.

The final two factors needed by business are that blockchain solutions are able to integrate with other developing technology like the Internet of Things or Virtual Reality, and that they stay on the right side of regulators and the law.

On Friday VeChain announced the first ICO to be conducted on the VeChainThor blockchain. Plair will be a “blockchain-backed platform to play, watch, and talk about gaming.” Plair Foundation CEO Patrick Tang described VeChain as a “premium blockchain partner” and said it provided “a powerful combination of professional advice, resources and community backing.”