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Cryptocurrency in Focus: VeChain Makes Sure Covid-19 Masks Are Legit

Blockchain company uses technology to verify a variety of products are the real deal.

It almost sounds like the plot of a movie: A crypto company founded by a former Louis Vuitton China executive is getting a boost after devising technology to spot counterfeit KN95 masks amid the coronavirus crisis. 

Did you catch all that? 

Let's try to sort it out: The company is VeChain (VET) and its founder is Sunny Lu, an ex-CIO of Louis Vuitton China. VET’s fundamentals are now on the rise, as its technology is used to make sure new KN95 masks coming from China are legit. 

Working directly with production factories in both China and Seattle, a San Francisco start-up called Real Items is making sure each box of KN95 masks are shipped with a two-factor authentication QR code that is recorded on VeChain's blockchain. Retailers can then scan the code with a smartphone to verify the product before they’re used to protect health care workers and others.

Showing promise in this area, the technology can be used to even make sure products sold online are the real thing. In fact, Real Items’ Shopify  (SHOP) - Get Shopify, Inc. Class A Report plugin generates a non-fungible record to be pegged to items for consumers to scan. It has infinite applicability in today’s booming e-commerce market. Access is also made as easy as possible, with the team removing the need for user wallets. 

Users can send their digital assets to their wallets from the real items platform, according to CEO David Menard. 

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The move comes after another one for VeChain. Late last month, Shanghai Gas partnered with Ve-Chain to build a trust-free “energy-as-a-service” ecosystem to build a more transparent and secure way to trade energy.

While these might sound out of the realm of crypto, VET says it hopes to be the first to put “real business” applications on a public blockchain. To solve scalability issues, VeChain uses a twin token system, similar to Neo and Ontology, in which its VET asset functions as a store of value, and the VeThor token represents the underlying cost of using the blockchain.

Verifiable Boost in Fundamental Data 

VET FCAS has gone up 6-points in the past week (0.79%), with Developer Behavior increasing 4-points (0.53%), Market Maturity climbing 13-points (1.62%) and User Activity remaining stable. 

Cryptocurrency of the Week_VET

The Flipside

Bureaucracy could slow the effort down. Old and inadequate regulations are slowing down adoption, as the Food and Drug Administration still requires a verification system to show that KN95 masks made in China are authenticated, and hasn’t accepted blockchain as the official solution. 

Seeking to address obstacles with public blockchains like Ethereum and Bitcoin (namely alleged governance inefficiencies, economic model issues and design difficulties), VeChain is working to eclipse solutions like Hyperledger that have so far been the go-to platforms for business.

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