Search ForexCrunch
  • VeChain had to adopt a centralized governance system for operational purposes.
  • VeChain also has other interesting enterprise collaborations in development.

Jason Rockwood, country manager at VeChain, recently explained the company’s role in its partnership with Walmart in an interview with Bloxlive.TV. He also pointed out how VeChain’s two-token system functions, and why VeChain, a fully decentralized public blockchain that was inspired by Ethereum, is more suitable for enterprise use than Ethereum.

Rockwood also reported that there are a number of upgrades to the protocol that is stimulating its evolution. According to Rockwood, the project on many fronts was slowed down due to Ethereum’s governance model, which made changes difficult to execute and affecting the growth of the project. For that reason, he says VeChain adopted a centralized governance system.

“One of the first things that makes a big difference is our governance model. It is more centralized than Ethereum”¦ It’s easier to update and easier to manage. And at the end of the day, that’s what a lot of enterprises are looking for. They want to make sure that they’re making an investment in a platform that will always be at the head of the curve in terms of what’s best practices for technology.”

Rockwood also expanded on the difference between centralized governance and centralized platforms:

“VeChain is a fully public decentralized protocol”¦ all the data on the blockchain can be viewed by the public. I think that we can talk about the challenges with centralized protocols, we typically mean protocols like Hyperledger that are permissioned and private. There’s really no way to publicly audit those transactions. In a sense, a project like Hyperledger is a really a ‘blockchain-like’ private database, whereas VeChain is a true blockchain. In that regard, I think we have the right balance in terms of centralization on the governance side and decentralization on the protocol side.”

Rockwood also says there are other interesting enterprise collaborations in development apart from VeChain’s high-profile partnership with Walmart.  

”We’re very proud of our relationship with the world’s largest electric car manufacturer BYD which is based in China, and we’ve partnered with them to build a carbon credit ecosystem that incentivizes consumers to make better decisions for the environment. We’re also working with DNV GL and the government of San Marino which is a small nation-state in Italy, and we’re working with them on a number of government administrative initiatives. And I’d also mention our work with BMW, where we’re working on a number of efficiencies in making their cars more secure and helping with the verifiability of some of the auto data.”