VeChain, founded by Sunny Lu, a former executive at Louis Vuitton China, is working on a project that will help to detect counterfeit KN95 face-masks. The decision to trace KN95 masks has provided a boost to the company’s fundamentals, according to a recent report.
How it will Work
To ensure that medical practitioners are receiving genuine masks, VeChain is working with manufacturers in Seattle and China. They have partnered with a company known as Real Items, which places a two-factor authentication code on the KN95 masks. The code is then recorded on the VeChain blockchain. To verify if a mask is authentic, all that one has to do is scan the QR code.
The technology can also be used on PPE sold online. Real Items is already working with Shopify via the Get Report plugin. The plugin generated a non-fungible record that is pegged to items, which consumers can scan. In the current e-commerce market, there are infinite possibilities for the use of the technology. To make it easy to use the tool, the Real Items team removed the need for users to have a wallet. However, a user can send their digital assets to their wallets from Real Items.
Coronavirus Fraud And Scams
As Visionary Financial recently reported, dark web users were selling N95 masks and fake Coronavirus cures. Anybody that was purchasing these materials on the dark web essentially had no way to verify the products. The process VeChain has in mind will mitigate these risks. The VeChain blockchain records all authentication codes making it impossible for fabricated products to make it past verification. With these products having a “QR code” the process to verify an item is as easy as swiping a credit card.
VeChain Partnerships
VeChain has established several partnerships besides this one. For instance, in March 2020, it began working with Shanghai Gas to create a trustless energy-as-a-service ecosystem, which will be used for the secure and transparent trading of energy.
The company hopes that it will be the first to create real-world business applications on a public blockchain. To deal with the problem of scalability, the company has created a twin token ecosystem. The system has the VET tokens, which are used as a store of value and the VeThor tokens, which are a representation of the cost of using the VeChain blockchain.
Possible Hindrances
While VeChain has an ambitious plan, there is still the issue of bureaucracy. Current regulation was created before the blockchain or cryptocurrencies were created. While some countries have made efforts to accommodate the sector, some major economies such as the US still have no comprehensive crypto and blockchain laws at the federal level. The lack of clear regulation has slowed down the adoption of blockchain technology by some major firms globally.
For instance, there is a separate layer of verification required by the FDA in the US to reveal the authenticity of Chinese-built KN95. Thus far, the verification process by the FDA does not recognize the use of the blockchain as a mark of verification. However, the FDA has been testing the use of the blockchain in the medical supply chain, although it has not officially adopted the technology into its processes yet.
VeChain is trying to address the problems that exist with public blockchains such as Ethereum by creating permissioned blockchains. Its solutions closely mirror those provided by Hyperledger Fabric, which has been the favorite solution for companies that wish to use the blockchain in their business processes.
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