Here we are going to explore how Volum, a blockchain-based holding company, is revolutionising the use case of utility tokens. Volum created an ERC-20 token, VLM, which is used by all portfolio companies on the platform. The token is used to facilitate transactions on the network, and to monitor each step of the supply chain process. By creating a marketplace that connects companies to each step of their unique supply chains, this creates a self-sustaining ecosystem based on the use of VLM.
As this new paradigm is shaking up traditional economy, it’s worth noting that this is only opening more doors for blockchain technology to fully integrate into the global economy.
What Are Utility Tokens?
Let’s start with a brief explanation of what utility tokens are: a digital token that is sold as a “digital coupon” to fund products or services on its platform. The VOLUM platform, built on the Ethereum blockchain, will run exclusively on the VLM utility token. By building utility capabilities within the platform, particularly with a wide variety of transaction types, Volum organically creates a healthy ecosystem. VLM has several use cases across several industries, including but not limited to payments, purchase orders, legal contracts, delivery/parcel tracking, IoT monitoring and reporting, etc. These use cases are unbounded, allowing companies the power to scale from local to global markets much faster.
Utility Tokens And Smart Contracts
Along with a versatile utility token, Volum is also integrating the use of smart contracts. By leveraging blockchain and self executing smart contracts, Volum simplifies supply chain management. Smart contracts enable automated payments within each supply chain network, to ensure portfolio companies have greater organisational and oversight capabilities. The VOLUM platform allows companies to track, route, identify and source all data activity that occurs on their supply chains. All data is stored securely on the platform and can be verified at any stage.
As the ICO aftermarket has turned into somewhat of a mine-field, it is widely understood that a real token use case is among the most critical factors when determining the success or failure of a project. With a robust, hybrid platform that caters to both start-ups and multinational corporations, VOLUM has succeeded in creating a token that is coherent, practicable and has a real use case.