VeChain (VET / VEN) has been consistent about releasing news and updates on a regular basis, and this latest bit of news is big. Last month, VeChain passed a PwC audit, putting them in league with some of the largest financial institutions in the world.
Cyber security and risk management are factors that you might want to consider when deciding on long-term investments in blockchain technology. With regard to VeChain , you might also consider their $2.2 billion market cap. And now there’s another factor to consider: the release of a fully functional, decentralized application.
The VeChain dApp, VeVID, is among the first tools that users may use to interface with the VeChain ecosystem. VeChain places a lot of emphasis on developing a working product: “We want to focus this release on comprehensiveness and professionalism, namely, the first public infrastructure dApp for VeChain Thor and why it is critically important for the platform.”
The VeVid dApp has been built with VeChain’s mission in mind. Namely, that they want to maintain high standards in honesty, compliance and self-regulation. Working with their strategic partner, BitOcean, they have developed their infrastructure in a way that is reportedly Japanese FSA compliant, with the VET (aka VEN) token legally listed on the major Japanese exchanges.
This has been developed as VeChain’s first official public infrastructural dApp, with functionality that includes a VeChain Digital ID and KYC (Know Your Customer) system, and VeChain Verified ID (VeVID).
There are multiple sides to the debate regarding privacy in the blockchain, and digital ID maintenance. VeChain falls on the compliance side of the argument. They believe that KYC and digital ID maintenance are necessary for widespread adoption of blockchain technology, both for cryptocurrencies and in general use. This would include validating, auditing and trusting members of the system to help weed out bad actors, while allowing governments and financial institutions to execute policies that are designed to protect the end user.
While the value of KYC and other systems that are designed to prevent money laundering and other illegal activities is questionable, there is no denying that regulations are moving in this direction. Governments often seek control of the free market, and every means of exchange. By following their rules as they exist today, while preparing for the rules that we expect to be in place tomorrow, VeChain arguably can focus on their business, rather than fighting governments around the world on compliance issues.
VeVID already has a use case. Fanghuwang is a financial services and lending platform in China. It will utilize the VeChain KYC process for all clients, in order to be compliant with China’s PBoC (People’s Bank of China) and CBRC (China Banking Regulatory Commission) standards. They also see a use case for Digital Identity with iTaotaoke.com, a content generator.
According to VeChain, “Global compliance allows VeChain Thor to become the world’s leading blockchain for business ecosystem development and use.” We will soon find out if this dApp will move VeChain closer towards global adoption, and whether it will have an impact on the token’s price and market capitalization.
Remember, this is not financial advice. Cryptosumer and its staff only report on our research, and it’s up to you to make your own financial decisions, or to seek the advice of a financial advisor.