Vechain Enterprise Adoption | Co-Founder & CEO Sunny Lu @ Draper University

So based on our assessment, starting from 2016, '17, it's all about exploration, POCs. And '17 to '18, lots of economic potentials or business potentials and lots of reference cases already find out. Like you just asked about BMW, actually we start to work with BMW since 2017. And on this Thursday, Ji Han from BMW will be the speaker to talk about, we call V-Verify Car. It's a mobile application built on the VeChain blockchain on Thursday. So if you want to find out more details, check out. And '18 to '20, I would say, it will lead to regulatory requirement, regulatory progress can help for the adoptions, and then There will be like years for the mass adoption, improve the user interfaces, user experiences, mass adoption rate for sure. So what VeChain is trying to do, or what we have been doing, we try to do something different. Honestly, when I go into this space, go into the blockchain space since 2013, At that time there was not even like a blockchain word, only Bitcoin or the other altcoins. But I think blockchain space, entire space, not really lack of technical people or technical expertise. There are lots of talents in this space, like Vitalik, lots of people, like Gavin Woods. But what blockchain is really missing is about something here, like governance model. Ironically, I don't believe in total decentralization. I don't think decentralization, like 100% decentralization, won't work. I don't think so. So what we try to do is we build up a proper governance which try to make the balance between decentralization, Any centralization. So basically we want the community to vote for the fundamental decisions or big strategy decisions. Even like someday they say, oh, Sunny, you are too old or you're like sloppy and you should be voted out. So community can do that, right? So I have like lots of pressure, I got to keep delivering, otherwise I'm going to lose my job or something. Even I'm the founder. But the execution needs to be centralized executed. So we set up the steering committee right now, 7 people, 3 from VeChain team and 2 from DNV GL, 1 from PwC before, and 1 from a university, Hong Kong University. As the chairman. representing academic forces. So those 7 people, including myself, formalized a steering committee, be responsible for all of the decisions, responsible for executions. So 2-way decentralization to keep the publicity, keep the transparency, but centralization part keep the efficiency and execution. Imagine Bitcoin has been running for like 10 years. But when you think about the upgrades or iterations, it's only forks, right, different forks. It's hard to imagine one software or one system didn't get any upgrades like major upgrades in the last 10 years, it's hard to believe that. So we wanted to keep this governance able to keep upgrading, keep iterating the software. In terms of economic model, that's very interesting because most of people are, let's say, missing the point, but actually getting more and more attention on this part right now. Fundamentally, let's say, the economic model of the current blockchain networks, most of the blockchain networks are following Bitcoin mode. In summary, which is very simple, The cost to use a public blockchain resources is linked to the token price, right? So for example, you pay Bitcoin transactions, you got to using Bitcoin to pay for the transaction fees or using Ether to buy gas to execute smart contracts. But it kind of generates a classic paradox, is more people do use, more utility running on the blockchain, and a higher price, and then higher cost to use, and nobody will use it anymore. It's kind of this paradox. So what VeChain do is we separate, we create a twin token system with a weak linkage. VET generate Vsor representing for the gas. VET can be fluctuated, can be executed in a smart contract, can be representing the value running on the blockchain. But vStore is responsible for the cost to using whatever the payment transactions or smart contract transactions, supposed to be relatively stable. So enterprise like that, actually as a matter of fact, when we designed that, we received lots of feedback from enterprise and we designed for this. And proof of authority, we set up the 101 authority nodes because we got lots of challenge from enterprise, Like Bitcoin network wasting lots of energy and resources, it's not necessary to have like 10,000 nodes to secure the network, but it most likely for economic incentives, right? If we can have better economic incentives here, why we need like 10,000 nodes or unlimited nodes? So 101 nodes is easy enough, is secure enough. And all of the business-friendly features, is linked to our belief, it has to be driven by enterprises. It has to be providing value for business. Thank you.