The CEO and founder of VeChain, Sunny Lu, has just highlighted how important the partnerships with DNV GL and PwC are to the blockchain organization. Sunny explained that they are both important in the management activities and governance structure of VeChain foundation.
The CEO made the statement during an interview with a Chinese news platform, Qukuaiwang, where he revealed that the two companies hold nothing less than 42% of the company’s management seat.
In the interview, when asked about why companies around the world are hesitant on the use and adoption of public chain, Sunny said total decentralization is a problem, as this makes blockchain project lack good governance structure, adding that managing decentralization is difficult for companies.
Based on his sentiment, he said a balance between centralization and decentralization is needed as there is no “absolute decentralization nor absolute centralization.” He explained that while decentralization makes way for transparency, centralization is also needed to ensure efficiency and development.
Sunny furthered that fluctuation in the price of cryptocurrency is another major reason company stay aloof public chain. The CEO who was an erstwhile CEO at Louis Vuitton China said the economic model of many public chains is a challenge for companies, as the cost of implementing applications on the public chain fluctuates largely.
The founder of VeChain said the cost of implementing an application on Ethereum in 2017 when ETH was valued $10 is greatly different from now as the price of the asset is now around $110.
Sunny Lu said these are areas VeChain aims to proffer solution to. The blockchain technology came to live to help enterprises willing to participate do so easily.
He elucidated that the governance system of the blockchain firm is well structured and the blockchain technology is built with users and to manage customers well, reasons why it partnered PWC and DNV GL which both have large customer resources.
He said while the two companies have thousands of customers within their ecosystem, VeChain has been able to get lots of feedback from users.
DNV GL and PwC Hold 3 of the 7 Management Seats at VeChain Foundation
DNV GL and PwC together hold 3 of the 7 management seats at VeChain Foundation, Sunny Lu said, while highlighting the importance of both companies at VeChain.
Sunny added that the governance structure gives it a certain degree of centralization which guarantees efficiency, and there is a decentralized voting system used to determine and elect the management committee which manages things in a centralized way.
CEO Sunny Lu said before the launch of VeChain mainnet, the foundation gathered about 40 different companies, asking them questions on how they can use blockchain.
The numerous feedbacks helped VeChain in designing a weighty technical architecture, a similar structure was used by Libral two years back, Sunny Lu added.
VeChain partnered DNV GL in 2018 to build a traceability and transparency application that would be used to track goods from production to consumer.
Also, VeChain and PwC collaborated together in 2018 after the after the auditing firm purchased a minor stake in the blockchain-based startup company.