VeChain ToolChain: How VeChain Became The AWS Of Public Blockchain
Following on from my last article about what makes VeChain the best public blockchain platform, I wanted to share some thoughts on VeChain’s strategic positioning and how it emulates the incredibly successful Amazon Web Service (AWS) business model.
VeChain, The Preeminent BaaS (Blockchain-as-a-Service) Provider
While stubborn adoption hurdles still persist for the blockchain industry, VeChain, through its years of business development, has managed to identify the critical needs of businesses when it comes to the mass adoption of public blockchain technology.
There are a number of reasons why I use Amazon Web Services (AWS) as an analogue for VeChain’s strategic positioning. Amazon cleverly recognised an opportunity to unite a fragmented software/hardware market, uniting previously disparate services and products, catalysing the adoption of web technologies by providing both simplicity and cost efficacy under one platform.
AWS has been an impressively successful part of Amazon’s business model. In Q1 2020, it earned a record $10 billion of revenue; 13.5% of Amazon’s total revenue at the time. AWS has been so successful because it provides simplicity and affordability, bringing together storage, software, computing power and security in a reliable and supported way. This one-stop service is a demonstrably successful business model.
ToolChain, VeChain’s AWS moment
ToolChain provides similar functionality for public blockchain, enabling businesses to easily integrate their data and value with VeChainThor. In its most simple form, ToolChain comes as an ‘off-the-shelf’ low-code/no-code platform, providing versatility and flexibility in a manner that can be rapidly deployed, in as little as 30 minutes.
Suddenly, businesses without technical expertise or in-house developers are able to take advantage of the numerous benefits of public blockchain for their own businesses, massively reducing lead times, costs and complexity.
ToolChain includes readily customisable mobile applications, IoT chips and sensors, access to the VeChainThor blockchain, support from the VeChain team and access to VeChain’s unique native fee delegation functionality. The platform’s real-world readiness is significantly enhanced by ‘ToolChain Credits’ (TCC), a non-crypto credit that can be purchased by a business and spent writing data, triggering VTHO to be burned as with a normal transaction.
From a legal perspective, ToolChain can be used across legal jurisdictions even where a lack of regulatory clarity persists. In this model, the business involved never directly handles crypto, instead, it pays for a service as it would an internet provider. With VeChain’s fee delegation protocol, the VTHO burn is handled on behalf of the business via the VIP191 contract or via fee-delegation as a service (DaaS) in the future. Currently, almost all legal jurisdictions face the issue lacking regulatory clarity.
The ToolChain package is further bolstered by well-reputed enterprises such as DNVGL and PwC, who provide data quality assurance services to clients prior to their hashing of data to the network. With this, businesses can leverage the reputation of assurance giants to demonstrate the quality and validity of the data being added on-chain, creating greater trust and economic value.
ToolChain - Blockchain Evolved
While ToolChain’s ‘off-the-shelf’ version is positioned as BaaS, its true potential lies in being a white-label infrastructure technology for channel partners.
ToolChain’s advanced version can be completely customized and stripped of its branding. Channel partners, for example, can redesign and repackage ToolChain, building ‘their’ BaaS/SaaS platforms/products, all the while, running said service on VeChainThor.
Walmart China’s “Walmart Food Safety Traceability System” was in fact built by auditing and assurance giant PwC, who played a key role in the onboarding of the Fortune #1.
Another example is MyStory, DNVGL’s provenance/SaaS product, repackaged and rebranded but all the while writing data and burning VTHO on VeChainThor.
ToolChain facilitates mass adoption by bringing all the necessary functionality under one affordable roof. It slashes development time, complexity and when combined with VeChain’s unique technologies and innovative protocols, provides the level of flexibility and cost expected by businesses today.
ToolChain To Unlock Exponential Adoption Of VeChainThor
This strategic positioning of ToolChain is intentional. The model adopts the key aspects and successes of AWS’ position in the traditional web industry, borrowing those same ideas of how it managed to ascend to the dominant market position it finds itself in today.
With ToolChain 4.0, its most recent iteration, VeChain has built a solution that neatly complies with business needs whilst cleverly addressing regulatory obstacles, ensuring rapid, pain-free deployment of public blockchain anywhere across the global economy. VeChain is completely unmatched in this capability.
With this positioning, exponential adoption of the VeChainThor public blockchain not only becomes feasible but begins to look almost certain. Key partners such as DNV GL, PwC, Grant Thorton, and many more are now offering their own blockchain BaaS products to client networks, customizing ToolChain as required and facilitating the development of public blockchain services, ultimately creating valuable transactions on VeChainThor.
VeChain ToolChain will be for public blockchain what AWS was to software with its astute business positioning.
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