On 23rd of April 2020, our Community Manager Dahee had a Live AMA session with CEO & Co-founder of VeChain, Sunny Lu on Crypto.com's Official Telegram Channel.
Dahee: Hi everyone! Welcome to VeChain x Crypto.com Community AMA. CEO & Co-founder of VeChain Sunny Lu will provide a comprehensive understanding of VeChain and it’s collaboration with Crypto.com.
Now let’s welcome Sunny! We’ve got a lot of questions for you but to start, can you briefly introduce the VeChain project?
Sunny: VeChain is THE public blockchain project with most of the use cases for the real business world. The VeChainThor public blockchain mainnet launched on June 30, 2018. I believe that VeChain is the pioneer of real-world applications using public blockchain technology, with international operations in multiple cities - Luxembourg, Paris, Milan, Cyprus, Tokyo, Shanghai/Beijing, Singapore, HK, USA(Bay Area).
Together with our strategic partners DNV GL, PwC, and many others, we have been enabling different builders to build up real business blockchain applications in different industries, including Walmart China, BMW, BYD Auto, LVMH, H&M, etc.
You can learn more from our official twitter.
Dahee: Thanks for your introduction, Sunny.
Now let’s jump into the Q&A section! (Pre-collected questions). We will have 10 questions before we open for live questions.
Q1. How will the current and upcoming economic crisis impact VeChain strategy and activities?
Sunny: That’s a good question. The global pandemic situation is a big impact on everyone, unfortunately. However, the strategic vision of VeChain stays the same - VeChain positions to be an Enabler to enable builders to build up business applications for different sectors.
And along with difficulties and challenges coming from such a pandemic situation, more and more have realized the importance of digitalization. And the even global economy may enter into the new form different from the current one. And I believe more than ever Blockchain will play a very important role in the era of the post-pandemic situation.
Therefore, we have been focusing on two major parts in terms of responsive actions to that:
1. Continue to build up enabler toolset for every builder - VeChain ToolChainTM
2. Take this time to improve internal management to be fully ready for the next big roll-up
Nevertheless, I have to admit that during the current global crisis, many of our partners and clients are taking decisive actions to mitigate the impact of COVID-19. Our business progress is inevitably bearing influences, such as meeting postpones. With our operations in China have come back to normal and the overseas team working remotely from home in response to the local government requirements, VeChain’s business is maintained by the joint efforts of our team and our partners.
Q2. What are three possible real-world problems arising from the COVID-19 pandemic that VeChain can solve?
Sunny: During this pandemic situation, it’s obvious that COVID-19 has raised more public awareness of data transparency and product authentication, especially in those industries that have the urgent needs of data sharing, transparency, and verification such as health care, food safety, sustainability and etc. I believe blockchain technology is ideal to enable an open, transparent, and authentic platform to collect valuable information, and bridge the trust between different parties and even countries. And like I said, Global collaboration will definitely need a more ready platform, tools, and services like the entire VeChain ecosystem is working and offering to support the new trend of digitalization. And we have more cases coming about that along with different partners directly or indirectly to help the fighting against COVID19.
Q3. Do you see a long-term increase in demand for product traceability, because of pandemics like the coronavirus disease (COVID-19)?
Sunny: The sensitivity over the qualifications of PPEs and the quality of PPEs by different manufacturers. We all know 3M (I used to work there like 10-15 years ago) is the best mask maker in the world, but there are tens of thousands of other mask makers in the world who are equally qualified. VeChain can help to make sure the end-users trust these other brands as much as 3m. (NOT a partnership announcement, please, just an example)
With the pandemic, everyone in the world will somehow change their behavior. In my opinion, it will be a new normal for us to not see each other as much as before and have more online types of social meetings. Therefore, VeChain's Toolchain can take a major role in helping certification issuers such as DNV GL, and PwC, or thousands of other issuers, auditors, inspectors to do DISTANT process via our Toolchain's blockchain solution which can be easily integrated to other tools/platforms with a maturity of readiness level.
Q4. How do you at VeChain company still manage to do these huge developments despite the ongoing PANDEMIC?
Sunny: The credits should be given to the global teams and our lovely professional business partners, either recover the working time in office in China or working remotely from home right now.
To give an example of this, we recently finished a new project together with DNV GL for the fast-fashion brand which we have partnered before. More than 4000 sustainability products were traced by MyStoryTM in this further collaboration.
As the enabler in the ecosystem, VeChain can offer our underlying blockchain technology and standard tools. As a professional in the sustainability sector, DNV GL effectively helped the client verify the valuable data in their sustainable production process.
The mature and proven-track business model enables VeChain, DNV GL, and our client to collaborate smoothly even during this difficult time.
More mature of the business operations and tools offering, it’s indeed easier to go through this pandemic situation. All of the efforts in the past have contributed to that to make the current activities easier.
Q5. How does VeChain attract more businesses to join their ecosystem when companies like IBM, Coca Cola, or Mercedes rather build their own blockchain than using blockchain as a service provider?
Sunny: Remember this, VeChain position is an enabler to enable builders. And we always put ourselves into the mindset to ask “what the builders need” and “what could be the barriers”.
Before answering that, think about how to build up e-commerce 20 years ago and now. The difference is the properness of the necessary tools and services. Nowadays, if you want to build up e-commerce for your business, you don’t have to build everything from scratch. But unfortunately, Blockchain applications for most of the business are still far away from that situation.
And building up a blockchain application for real business is way more complicated than you think and it’s not only about Blockchain technologies but other technologies and integrations with business processes. The good thing is VeChain is specializing in this area with continuous efforts to:
1) build up VeChain ToolChainTM to make the building process easy, fast and cost-effective
2) build up a strong partnership network to deliver what is must like DNVGL, PwC, Deloitte and etc.
Q6. Will you grow your collaboration and solutions for different general stores after the accomplishment with Walmart China, and is it conceivable that you will copy this model to different businesses and organizations too?
Sunny: The Traceability Platform project with PwC and Walmart China is a significant milestone for us. In the past year, we have been working closely all together on further implementations which, to be honest, was kind of delayed due to the COVID19. But The success of the first batch gave us valuable experience, and the experience is useful to expand for more product lines and new stores which are on the way. Nevertheless, innovation is not an easy thing in the traditional business world. We need to respect and understand our partner and client's plan and intention of the progress disclosure. And going further, it’s a very good reference and proven case which can definitely help to be replicated to others.
Q7. How does VET play a part or have developments that help in China’s “The Belt and Road” initiative?
Sunny: The BRI (one belt one road initiative) is a global development strategy adopted by the Chinese government. VeChain has lots of opportunities to contribute, especially given the facts that VeChain has the most business partners (builders), business users, and real use cases focus on traceability, supply chain management, food safety, sustainabilities etc.
The essential basics of BRI are about global business collaborations. And VeChain has laid down some good foundations for that. In December 2019, VeChain became the co-founder of The Belt and Road Initiative Blockchain Alliance to provide underlying blockchain technology infrastructure and standard tools for multi-party partnerships among BRI members. For more information please refer to this article.
Q8. What's about VeChain & DeFi?
Sunny: Generally, VeChain’s position about DeFi is Cautious, Concrete, and Regulated rather than speed. On the other hand, we believe in the bright future of Defi which can bring the real value of inclusive Finance to everyone. But also, we have to admit the fact that the world still needs more business activities on Blockchain first. Fundamentally, Finance is existing to support Business.
Q9. What's the status of the buyback program?
Sunny: The buyback plan is being conducted. The latest progress will be disclosed in the next episode of Financial Executive Reports. To improve the management of buyback, we are looking for industry-leading third party custody service providers to manage the assets to ensure security. And once it’s ready, we will make it for public awareness for sure.
Q10. How will the announced issuance of CBDC in China affect VeChain and other blockchain projects in China?
Sunny: Firstly, DC/EP is not open-sourced. But giving the public information released, we can have some understanding. DCEP is a digital version of M0 of RMB, so you can call it eCash other than Cryptocurrencies. And Dr. Ren of the VeChain R&D team recently published an article about DCEP. If someone from the community can help to translate into English, that would be great.
I believe it’s a quite positive sign for digitalization. Even though, right now, DCEP will be limited to China (even now there are only a number of cities included in the pilot phases). But I believe the best part of DCEP is to support global collaborations in a faster and more efficient way for example like BRIs.
It’s still unclear how to integrate or collaborate with DCEP for any blockchain projects per say. But DCEP will definitely support digitalized business activities for sure whatever on Blockchain or on Centralized Platforms.
In conclusion, there will be opportunities for business applications integrated to DCEP.
Dahee: Thanks Sunny for your insightful responses! Now it’s the Live Q&A Session, please submit your questions here and Sunny will address it.
Selected questions will share a pool of 75,000 VET and it will be distributed through the Crypto.com App.
Live Q1. What is Vechain's economic model? What are VeChain's benefits to the government on internet 4.0?
Sunny: You can check the second 4 of white paper 2.0 of VeChain about the Economic model. And Internet 4.0 is a very big concept and an essential part of digitalization. And I am sure there will be many opportunities to VeChain or to any Blockchain projects/platforms to contribute and collaborate.
Live Q2. There are many strong developing projects, so why should we choose Vechain and not others? What in Vechain makes you more confident than other projects?
Sunny: I believe I answered similar in pre-collected questions.
1) Readiness of Platform (not only about Blockchain part, but also Governance Mode, Economic Mode and business friendly features like MTT, MPP and etc. ) Go to VeChain.org to find out more
2) Business understanding and strong capabilities to conform business requests to tech delivery
3) Readiness of Services and Tools (VeChainToolChain)
4) Strong partnership network (DNVGL, PwC, Deloitte etc.)
Live Q3. VeChain is currently going well and is receiving positive attention. What will you do to get more exposure and adoption? What is the VeChain message for the Community today?
Sunny: VeChain community is the best!
I believe with more and more use cases, VeChain will have more exposures. And I believe the most strong messages and voices should come from the builders and users themselves.
VeChain position is Enabler and we are calling for more builders from community to join us to use VeChain Toolchain or your own to build up meaningful applications to create Value!
Live Q4. What to do with the notorious mass adoption? How do you suggest ordinary people, ordinary people, aged, older generation, to switch from centralized services to Vechain?
Sunny: I was attracted by “simple” but it’s actually not a simple question at all.
In short, Blockchain is a infrastructure level or protocol level kind of technoogy. And most of normal users should not see it or even feel it. Just like “intel Inside”, you may use Intel products everywhere, but you don’t feel it. I am expecting one day “VeChain Powered” could be as powerful as “Intel Inside”.
Live Q5. You have a POWERHOUSE team and Outstanding Devs Eager to WORK in the Open, May I ask, What will be the FIRST THING that You at VECHAIN will DO, when All of the PANDEMIC will Settle Down? I'm Sure You're very Excited to do More Vechain Business.
Sunny: Personally, I will start immediately to travel (my daughter will hate that) to resume many projects on-hold due to COVID19.
And my team will look for meetings, workshops, discussions with many potential partners/builders in line.
in General, scale up of VeChain offerings to bring more business activities on VeChainThor is THE thing we will do after the Pandemic situation is cleared out.
God bless all.
Live Q6. My question is about what makes Proof Of Authority different from other consensus? And why does Vechain use POA?
Sunny: We did something no one ever did before - listen from the potential markets before we make the decision of consensus and the other important tech features of VeChainThor blockchain. We have interviewed hundreds of executive people who are from big enterprises or small businesses to ask what do you need to use public Blockchain. And we are still doing it.
As a result, we choose PoA which I believe is most friendly to business applications. Actually, PoA 2.0 is announced and will be delivered in the near future. Also, you can go to vechain.org for white paper 2.0 and more other details.
In short, everything is following the simple target which is to make business applications easily built and run on VeChainThor.
Live Q7. A while back you did a survey about the X Nodes. It looked like you wanted to have feedback from the community to improve the X nodes and give more benefits, what happened with it? any new development?
Sunny: Actually, we have improved about benefits of X node holders including:
1) X Node holders have more voting weights in general. X Node holders are equally as important as authority nodes. X node holders are true owners of the VeChain and VeChain community. That’s most important.
2) During the past events (VeChain summit, AMAs, giving-aways, and etc.), X Node holders have been granted the highest rewards
3) X Node holders have the most VTHO rewards and extra lock-up rewards from VeChain Foundation from the beginning.
4) And we urges every collaborated ecosystem projects to valuate X node holders with highest reward for their marketing events
And furthermore, we will continue to evaluate X node holders in the coming activities and events.
Live Q8. Are you still confident in your Nov19 forecast of a 5X to 10X increase in transactions on the VeChainThor Mainnet this year?
Sunny: I have to say COVID19 is getting in the way but we have been trying everything to guarantee that. From the past, we have seen a good records:
1. second semister of 2018 - 500K TXs
2. The whole years of 2019 - 5m+ TXs (45m+ clauses)
Let’s fight together with everyone against COVID19 and bring everything back to normal.
Live Q9. What are the strategic partnerships between VeChain and Crypto.com? What financial opportunities will be in the future?
Sunny: Thank you for your passion. And most of your questions can be answered in vechain.org or white paper.
And in terms of Crypto.com, we all know Crypto.com is well regulated in many countries in the world to provide crypto related financial services while VeChain is focused on business applications. I believe it naturally matches for the comprehensive services to enterprise users and normal users. We can collaborate in so many ways with a bright future.
and last but not least, Crypto.com’s community is also awesome!
Live Q10. Does anyone know how sars was dealt with? I was reading that the virus is very similar to sars and that in 2004 there was a company that was on stage one trial for developing a sars vaccine but they never finished it because of the probel. Was dealt with another way. Article was saying that we could definitely use that as a base for developing a vaccine for the new virus thk But I'm really curious tho if we never came out with a vaccine then how the hell did the sars epidemic stop?
The last question I will answer is about the Vaccine Project since so many people asked. (I've read conflicting things. I don't think there's an agreed upon source. It was initialized by DNVGL and VeChain to build up a solution on VeChainThor blockchain to improve transparency and visibility about vaccine management.
It is such a big and ambitious project given the facts that healthcare and pharmaceutical are the most restricted areas especially talking about bringing innovation solutions built on cutting-edge technologies like IoT and Blockchain.
But the good thing is finally we made some break-through to apply that to a project coming soon. Meanwhile, I need to fully respect the NDA from our business partners. But I could say it’s something about clinic trail meds. And I truly hope it can be released very soon.
Dahee: Much appreciation for your insightful responses, Sunny!
Today’s VeChain x Crypto.com Community AMA is done.
We appreciate the folks who stayed all the way.
Stay tuned for The Syndicate event on Tuesday next week! VET 50% off! 🔥
All questions that were addressed during the AMA will share a pool of 150,000 VET. Congratulations to all of the winners! 👏🎉 Our Community Manager will reach out to the winners individually.
VET rewards will be issued within 14 days after the campaign ends. You can log in and see your App's VET wallet section.