VeChain inks deal to build biofuel blockchain infrastructure

• The main goal of the partnership is to build a blockchain infrastructure for the biofuels sector.
• VeChain has established new partnerships in recent months.

According to a press release issued by the UCO network, it has partnered with VeChain (an enterprise blockchain provider) to develop blockchain systems for the biofuel space. The official statement reads: “The UCO network has a full alignment with the VeChain Foundation across governance, social and environmental goals. This alignment has been a crucial contributor to the creation of this natural and exciting partnership.”

Why the partnership with the UCO network?

The UCO network is the first biofuel platform built on the blockchain, aimed at solving issues related to environmental, social and governance (ESG) systems. The services include traceability solutions for cooking oil. But with an emphasis on compliance with the EU directive for renewable energy ii. The network explains that the platform combines two new technologies (Internet of Things, IoT technology and blockchain technology).

Consequently, supply chain fraud is less likely in the used cooking oil (UCO) industry. Under the terms of the partnership, VeChainThor will be the UCO network’s tier-1 blockchain provider. Thus, UCO can use VeChainThor’s functionalities, such as transaction dependency, multi-party payment, controllable transaction lifecycle and multi-task transaction.

These features will make the UCO network’s layer-1 development more user-friendly. According to the press release, VeChain will address some of the UCO network’s issues with its PoA consensus mechanism. The most important problems are wasteful energy use and inefficient upgrading processes.

VeChain’s recent partnership

VeChain has been in various new collaborations over the past couple of months. Last month, the enterprise blockchain provider entered into a deal with three firms from different sectors. On August 29, the company entered into a partnership with TruTrace technologies (developer of a blockchain-built platform for the pharmaceutical industry, food, clothing and legal cannabis).

The partnership improves blockchain adoption and ensures product authenticity and governance. Earlier this month (August 10), TruTrace also announced a partnership with OrionOne to promote blockchain adoption among logistics firms and service providers.

Almost a week before the announcement of the partnership with OrionOne (August 3), VeChain announced a collaboration with Amazon Web Services (AWS). According to this partnership, AWS will be the new technical partner for VeChain. Thus, the blockchain company can achieve its set goals within the shortest period. One such goal is the development of carbon-neutral digital infrastructure via the VeCarbon initiative.

The UCO square

While biodiesel is the fuel of the future, recycled UCO (used cooking oil) is the primary determinant of this significant change. According to researchandmarkets.com, the UCO market worldwide is likely to be worth over $10 billion in the next six years. This will represent a growth of 64 per cent from the value from 2021.

A major problem plaguing this industry is that 33 percent of UCOs across Europe are fraudulent. Therefore, the UCO network aims to solve this problem by developing a public blockchain protocol with $UCOIL as the governance token of the protocol. This partnership with VeChain represents a significant turning point in providing a solution to this problem.