Supply chain-focused blockchain project VeChain (VET) has inked a significant partnership with Walmart China to ensure the safety of perishable food products. VeChain announced the development through a Medium post published June 25, 2019.
VeChain Lands the Big Fish
Emerging technologies like artificial intelligence (AI), machine learning, Internet of Things (IoT), and blockchain have often been termed as the agents of change to bring about the next industrial revolution and considering the sheer breadth of utilities they provide, it’s hard to argue otherwise.
Distributed ledger technology (DLT) project VeChain is arguably the largest startup in the rapidly advancing blockchain industry which seeks to deploy DLT-based solutions in the extremely labyrinthine supply chain space.
In what is widely being considered a watershed partnership for VeChain, the Singapore-based startup has onboarded retail giant Walmart’s China offshoot with the launch of the Walmart China Blockchain Traceability Platform.
Announced at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar, the platform is reportedly built on VeChain’s enterprise-grade blockchain solution – VeChainThor Blockchain.
A Landmark Partnership
VeChain is famous within the cryptocurrency ecosystem for its high-profile partnerships, and the alliance with Walmart China is no exception.
The retail conglomerate employs more than 2.2 million people and operates over 11,000 stores across the globe. It’s worth highlighting that the company has, in the past, collaborated with various blockchain firms to increase its operational efficiency and mitigate costs.
Per the announcement, a total of 23 product lines have already been tested and launched on the Walmart China Blockchain Traceability Platform. VeChain expects the platform to add another 100 product lines by the end of 2019 covering a total of ten product categories including fresh meat products, rice, mushrooms, and cooking oil, among others.
VeChain expects Walmart China’s traceability system to have a significant impact on the company’s retail streams. Experts estimate traceable fresh meat to account for 50 percent of the total sales of packaged fresh meat, traceable vegetables for 40 percent of the total sales of packaged vegetables, and traceable seafood for 12.5 percent of the total sales of seafood by the end of 2020.
Commenting on the development, Kevin Feng, the Chief Operating Officer of Vechain, said:
“The launch of the Blockchain Traceability Platform by Walmart China, the world-class retail giant, is of great significance to the commercial application of blockchain technology. VeChain will work with Walmart China to actively take heed of the call of the government, by utilizing technology to promote the traceability of fresh food, and to provide innovative solutions for the traceability platform through digital technology, so as to generate more transparent and reassuring consumption experience.”
Unsurprisingly, the price of VET – the digital token of VeChain – skyrocketed shortly after the formal announcement of the partnership with Walmart China.
At the time of writing, VET trades at $0.009 per token, up 25.26 percent in the 24-hour trading period and a market cap of slightly above $500 million.