If you’ve heard anything about Waltcoinchain, you were probably left wondering how it relates to Bitcoin and the other cryptocurrencies we’ve been covering. Coins like Litecoin, Dash, and Bitcoin Cash all solve similar problems with currencies using the blockchain ledger. The altcoin Waltoncoin isn’t out to be the next major cryptocurrency, but instead solves a specific set of needs.
Waltonchain is a blockchain network aiming to serve the supply chain industry and its various markets. Waltonchain partners blockchain technology with the Internet of Things (IoT) to create a distributed, transparent system to track goods and materials as they move through the supply chain.
Waltonchain uses RFID chips as the tracking mechanism to monitor products through production and distribution. Data associated with each chip is stored on the immutable Waltonchain blockchain to ensure accuracy and reliability at each point.
How Waltonchain Works
Let’s dive in and explain just how Waltonchain makes this work.
Value Internet of Things (VIoT)
Waltonchain introduces this notion of the Value Internet of Things (VIoT) to represent their blending of technologies with blockchain and RFID both leverage in their offering.
RFID (radio-frequency identification) uses electromagnetic fields to automatically identify and track tags attached to objects, which electronically store information. RFID technology is commonly used in commerce and supply chain logistics for inventory tracking, creating data libraries and tracing product histories in the business ecosystem.
Waltonchain takes that electronically gathered data and stores it on their blockchain, so anyone with access to the ledger can review accurate data about physical items. This VIoT concept allows for several benefits in Waltonchain’s applications: improved security of collected data, reliable product tracking to point of origin, anti-counterfeiting efforts with RFID tracking, and a distributed database for product information.
Waltonchain refers to the parent chain in the Walton blockchain system. The purpose of Waltonchain is to track Waltoncoin (WTC) transactions on the blockchain, manage sub-chains and execute smart contracts on the parent chain.
Similar to the way Ethereum and ERC20 tokens work, anyone can build their own sub-chain on the Walton network and create their own tokens. On top of that, sub-chains can opt to have their own consensus network apart from Walton’s parent chain.
Having a system of sub-chains offers a couple important benefits. To start, each organization using the blockchain network can customize the software to suit their specific needs. When creating their sub-chain, they aren’t limited to the same network protocol of the parent-chain. This separation also alleviates the scalability issues of the network. With the data stored on sub-chains, the individual activity of specific sub-chains won’t affect the entire network.
This is where the sub-chain concept is different than Ethereum’s network. Ethereum uses decentralized applications (DApps) to allow third-party entities to create their own blockchain and tokens on the network. However, if there’s a spike in network usage, like the famous example of Cryptokitties, it can congest the network for anyone using the blockchain.
Waltonchain’s use of sub-chains allows for increased scalability and the sub-chains operate apart from the parent chain. This allows multiple verticals and applications of the blockchain, and potentially a single company would be able to create their own sub-chain and store their data there.
Where Does Waltoncoin (WTC) Come In?
Let’s take a quick look at how Waltoncoin (WTC) plays a part in the ecosystem and supports Waltonchain’s Proof of Stake and Trust (PoST) system.
WTC is the primary currency powering the Waltonchain ecosystem. The maximum circulating supply of WTC is 100 million coins, and there are currently about 70 million in circulation while the rest will be mined in the future. WTC coins have several functions serving Waltonchain: issuing sub chains, making dividend and interest payments, supporting a distributed voting and governance system and more.
WTC is used as a transactional coin in the network to support activities apart from the parent-chain through micro fee payments, facilitate collaboration and data exchange between sub-chains, and reward miners and nodes for maintaining the blockchain network.
The idea behind its transactional nature is that WTC can act as more than just a unit of currency. Its application in various business use cases gives it value as a unit of measure for workload and credit in relation to the Internet of Things. It can be used as:
- Currency to purchase related commodities
- A unit of measurement for credit in IoT
- A unit of measurement for the workload or quality of the IoT
- A storage of value or transfer mechanism.
Proof of Stake & Trust (PoST)
To hone in on how Waltonchain maintains their network, a unique consensus method is used called Proof of Stake & Trust (PoST). It borrows many of the same characteristics as Proof of Stake, which rewards token holders with dividend payments. All token holders participate in a portion of block rewards which are dependent on how big their token stake is.
However, Waltonchain also adds the trust factor to the equation. Nodes can gain reputation in the system to be recognized as a high quality and trustworthy node. This method enhances the potential ‘dividend’ reward for nodes with a stronger reputation. But regardless, all WTC token holders will receive WTC dividends by holding tokens in their wallet.
The Waltoncoin Forecast for Investing
Waltoncoin presents an interesting opportunity for blockchain and token application outside of a traditional currency use case. Businesses can leverage the Walton blockchain network to create their own blockchain platforms as a sub-chain. The real-world application for Waltoncoin is compelling.
Currently, Waltonchain is focusing their attention on the clothing and apparel verticals. The clothing industry is bogged with fraud and counterfeit products, creating the perfect fit for a technology solution like Waltonchain. Companies that suffer from knock-off products, a global brand such as Nike for example, could build their own sub-chain on the network to maintain data across their menu of product lines.
Waltonchain would build trust and reliability of consumer products, enabling the end user to scan the RFID chip to see what the specific product is, trace its history and origin, see who handled it during production and review any other product-related data stored on the blockchain ledger. This brings a new level of transparency and visibility into product quality and reliability.
Team & Partners
Within blockchain projects, the team is a critical piece of overall success. The team behind Waltonchain is loaded with experience in supply chain, IoT, RFID technology, and blockchain implementations.
The leadership team originates from China and Korea. Co-founder Do Sanghyuk was previously the Director of Korean Standard Products Association, and the other co-founder Xu Fangcheng was previously the Supply Chain Management Director at Septwolves Group.
In order to further the project, Waltonchain has developed a couple key partnerships. They made a strategic investment with Korean exchange Coinnest to take advantage of the growing Korean cryptocurrency community and markets.
The primary competition for Waltonchain is another blockchain-based project called Vechain. Similar to Waltonchain, they are developing a blockchain and IoT solution to serve the supply chain industry. Vechain is integrating DApps into their network to mimic the functions of Walton’s sub chains.
The main difference between the two projects is the IoT technology used to provide the data tracking capabilities. Waltonchain strictly uses RFID technology, while Vechain also incorporates NFC and QR codes to record data as well.
The market is large enough to support both projects, and each is currently targeting different segments and verticals of the supply chain. Vechain is focusing on luxury goods, like the wine industry, while Waltonchain is targeting the clothing and apparel sector.
Waltoncoin is an interesting investment play into practical blockchain applications. They have a strong team supporting the project’s development and have their foot in the door to key Asian markets.
Investing in WTC also opens the door for dividend payments to increase token holdings. For investors looking at cryptocurrencies that provide some traditional passive growth, Waltoncoin provides that income opportunity.
Waltonchain’s unique blockchain ecosystem has the potential to revolutionize digital supply chains and other business applications. Its limited coin supply adds to its attractiveness as an investment as well in the cryptocurrency market. In the long run, if Waltonchain builds a strong user base, today’s investors could see their investments pay off nicely.