Part II: VeChain CEO, Sunny Lu’s Silicon Valley Live Blockchain Lecture
—Continuation of the Lecture: Sunny Lu on what VeChains‘ strategic partnership with DNV GL to solve real life problems together ’and the management and economic models of blockchain systems
Please read Part I of Silicon Valley Live Blockchain Lecture the following is a translation of Part II of that series.
TL;DR VeChain’s partnership with DNV GL enables DNV GL to ensure that the data provided by their 80,000 + customers is trustworthy by providing a complete industry chain. This chain encompasses all the aspects that VeChain has established in a distributive commercial ecology system, initiating Blockchain X. This next stage in the evolution of blockchain platform establishes information transparency and symmetry, reduces the cost of trust, and achieves higher efficiency for business cooperation. VeChain is using our ideals to establish cross-chain applications for many upcoming partners.
Section 3: VeChain’s Collaboration with DNV GL
One of the very interesting international cooperation projects we’re currently developing is our cooperation project with DNV GL. Next week, I’m about to go on a business trip to Oslo, Norway and attend the Global CEO Conference. In the conference, I’ll share my ideas and thoughts from the perspective of blockchain technology and discuss the business prospect regarding the future path of our cooperation project.
DNV GL is a world leading certificate authority and business certification service provider. DNV GL is also a member of the assessment committee of global ISO accreditation and one of the constituents of the regulations and standards of global carbon emissions. With many branches and offices all over the world, and its cooperation partners from 187 countries, DNV GL has established business connections with more than 80,000 valued customers, including Airbus, Coca Cola, Tencent, IBM, Oracle, Cisco, HSBC, and Alibaba.
DNV GL issues more than 80,000 accreditation certificates under ISO accreditation system every year, and meanwhile, it also provides secure and sustainable service for 6,000 food and beverage companies. What’s more, a lot of medical institutions also choose DNV GL as a trusted organization to help them improve their medical levels and services. Overall, DNV GL is a very powerful global strategic cooperation partner.
DNV GL provides a traditional trust service that supports different enterprises, in business accreditation, through the use of professional technologies in different fields and industries. For example, they provide relevant services to support food manufacturers in verifying that the food is secure and edible through the verification of management procedures, logistics and supply chain and retailers. During the global trend towards digitization, DNV GL found that an increasing number of their future target customers chose to adopt digitized methods into their production, logistics, sales and even customer service processes due to the fact that the verification process no longer requires traditional methods and that the verification of digitized production requires data analysis.
The challenge that they face during data analysis is that they have to ensure that all data provided by their customers or collected by their customers’ system are trustworthy. Hence, they made contact with us.
Blockchain technology can support DNV GL in their global strategic transformation towards digitization.
It is our pleasure to be one of DNV GL’s global strategic cooperation partners. This partnership means that in the future, our direct or indirect service targets will potentially include more than 80,000 leading enterprises all over the world. Of course, challenge comes with pressure, but we believe that we can turn pressure into motivation.
We are currently providing service for a global convenience store franchise in collaboration with DNV GL. We will provide a complete industry chain for DNV GL, which includes various steps of digital accreditation services that establish connections among manufacturers, warehouse and logistics chain, retail sales and even end customers. Through our collaboration, DNV GL is empowered by different blockchain service we provided, which in turn empowers the enterprises that DNV GL provides service for, and finally benefits end users.
Regarding cold-chain logistics, through the on-board IoT sensors on trucks, we are able to conduct real time data collection and analysis. The new generation of digital accreditation service will thus be more efficient and affordable. From our customers and partners’ perspectives, through digital accreditation system, all customers will be able to examine all details of the food they purchased and relevant accreditation process and results, which make customers feel at ease when they consume the food.
A brief introduction of DNV GL (Not in Sunny Lu’s speech)
DNV GL is a global quality assurance and risk management company. Driven by their purpose of safeguarding life, property and the environment, DNV GL enables their customers to advance the safety and sustainability of their business. The company provides classification, technical assurance, software and independent expert advisory services to the maritime, oil & gas, power and renewables industries. DNV GL also provides certification, supply chain and data management services to customers across a wide range of industries. With origins stretching back to 1864 and operations in more than 100 countries, their experts are dedicated to helping customers make the world safer, smarter and greener.
As one of the world’s leading certification bodies, DNV GL helps businesses assure the performance of their organizations, products, people, facilities and supply chains through certification, verification, assessment and training services. Partnering with their customers, DNV GL builds sustainable business performance and create stakeholder trust across all types of industries.
Section 4: The new thoughts of VeChain regarding the management and economic models of blockchain systems.
The next generation of our blockchain is also a key step in our development path; we like to call it the Thor Blockchain.
Blockchain technology is also called the next generation of Internet. Regarding this topic, we can assess it from a more macroscopic perspective. As a matter of fact, within the last 1 or 2 centuries, we have always been developing logistics technologies. No matter if its ships, vehicles and aeroplanes, the purpose of the technologies behind these inventions is basically the same — move humans or products from Point A to Point B. Within the last three or four decades, Internet technology has been greatly developed. Internet technology can also be called information technology. When information flow and logistics integrate together, the Internet can thus change the world. For example, E-commerce is the perfect combination of information flow technology and logistics technology.
Blockchain is the technology of trust or value flow. Hence, the future trend of blockchain is the combination of logistics, information flow and value flow. This combination is set to bring huge impact to the real world. The new business pattern, new products, new services, new leading companies and new platforms brought by this combination are set to create incalculable amount of benefit. That’s why we think blockchain technology can be called the next generation of technology that changes the world.
The developing trend of blockchain technology can be simply described as the transfer of smart contracts and currencies. Personally, I’d say that blockchain and digital currencies are actually an integral part, as tokens can be either executed or programmed in smart contracts, which greatly improves the efficiency and speed of value transfer.
Another concept is that, in a traditional world, economic development is dependent on the supply of currency. The economy can only develop further by increasing the supply of currency, and that is the reason why a slow inflation process occurs. However, in the world of blockchain, we use another method to support the development of economy. Through the high efficiency of smart contract execution, digital currencies can circulate much faster than traditional currencies. If you have 1 dollar, and you let it circulate for 100 times a day, you actually spend 1 dollar like 100 dollars. That’s why blockchain technology is called the technology of transfer and it provides great support for the economy. The use of blockchain technology can boost economic development and ease inflation at the same time.
Just imagine the distributive commercial ecology system that blockchain technology can establish in the future and you will see a lot of advantages:
- Information transparency and information symmetry. In the ecology system of blockchain, the information will be more transparent and symmetrical. The system can reduce the improper benefit or value transfer caused by information asymmetry at the lowest level and let the value flow to where it supposed to go.
- The cost of trust is greatly reduced. Blockchain only generates various types of reliable data, hence all disputes and cost of trust will be greatly reduced.
- Higher efficiency on business cooperation. If we realize the combination of logistics, information flow and value flow, the world will operate much faster.
Based on above concepts and ideas, we hereby present our thoughts and ideas of the next generation of blockchain technology. As we all know, Bitcoin is called Blockchain 1.0 and Ethereum is called Blockchain 2.0. So how would the next generation of blockchain look like, and can VeChain Thor become the next generation of blockchain? All we can say that this is the development path we’re trying to achieve, and we call it Blockchain X. Blockchain X mainly involves the following features:
- Finds the perfect balance between centralized and decentralized blockchain systems.
- Has reasonable governance structure and economic models.
- Adopts an application-oriented technology that allows more applications to operate on the system.
- The platform should be open and allow more interactions with other technologies, including IoT and AI (Artificial Intelligence).
- Different blockchain systems should be more open to each other for the realization of cross-chain technology. We’re currently developing some cross-chain applications with some of our powerful partners, and we will release information regarding our achievements on this project soon.
Our goal is to transform VeChain into a new platform through months of effort.