VeChain Partners with China’s BYD for Carbon Credit App
VeChain (VET) investors have been expecting a major announcement in September, and now that the time has come, a market sell-off has spoiled the party. Given today’s 7% decline, you wouldn’t know that VeChain has just unveiled a groundbreaking partnership with the Tesla of China — BYD — for a carbon credit app that uses the VeChainThor blockchain to store data.
While the VET coin has not been able to escape the sellers, it remains 33% higher versus where it was a month ago. Over the course of the last month, during which time investors have cheered the release of VeChainThor mainnet v1.0.2, the VET market cap has increased from $738 million to $887.4 million even though in recent days it hovered at more than $1 billion. Meanwhile, there appears to have been a flight to safety of sorts in recent days, as evidenced by bitcoin’s dominance having risen to nearly 55%.
Electric car maker BYD partnered with VeChain and DNV GL to deliver the first in a series of a proof of concepts for what it describes as a “carbon banking solution for car models.” It harnesses VeChain’s “automobile lifecycle management solution” to move the ” data of millions of cars, buses, trains, and other vehicles onto a public blockchain platform.”
The way it works is the app collects data from drivers of BYD cars across mileage as well as fuel and power consumption, for instance. It does this via a proprietary BYD smart contract on the VeChain blockchain that uses an emission reduction formula by which users are awarded carbon credits.
VeChain chief Sunny Lu said in a statement: “As the global leader in green car manufacturing, BYD offered us the opportunity to pioneer real change. It takes innovators like BYD to make the world a cleaner place. Carbon banking will be a new reality for billions.”
It’s the second of two major partnerships so far this month, as in recent days the People’s Insurance Company of China (PICC), which boasts a war chest of $126 billion in assets, announced it’s also using the VeChain blockchain. PICC is looking to the blockchain to slash the “paper trail” associated with legacy insurance systems, bolster data verification and deliver “instant compensation” via smart contracts and IoT devices.
Developments like these in key industries like auto and insurance go a long way toward the integration of the blockchain into the mainstream, even if the VET price doesn’t reflect these events. The market bloodbath has taken nearly every altcoin down with it, bringing the combined value of the cryptocurrency market to $203 billion. But the cryptocurrency market doesn’t always behave rationally, making developments like these all the more important to showcase the activity of the project.
Featured image courtesy of Shutterstock.