READING TIME: 15 MINUTES
In this article, I will write about what VIDT Datalink is, the $VIDT coin and its tokenomics.
This article is for informational purposes. It should not be seen as investment advice. Always do your own research.
According to the VIDT Datalink website, it is their mission to certify and secure digital assets. Privacy and fraud is an increasingly growing issue when it comes to digital assets. These are issues that hold back society and legacy businesses from digital adoption and leveraging of blockchain technology. VIDT has an ecosystem that is fully GDPR-compliant. It consists of an API, a Private Cloud and Smart Contract - which allows publishers (businesses & organizations) to anchor data from any platform and cloud service to multiple blockchains.
It is essential to point out that digital assets in VIDT usage are not related to cryptocurrencies as digital assets. But rather, anything that exists in a digital format and comes with rights of use and ownership. Data that does not have the attributes of rights or ownership cannot be considered an asset. So, when talking about digital assets in the context of VIDT, I refer to any type of documentation, certificates, media or data. As such, the TAM (Total Addressable Market) for VIDT Datalink is difficult to quantify.
Data is often touted as the "new oil". The meaning behind "data is the new oil" is that similarly to oil, data in itself is not valuable in its raw form. The value of data is captured when the data is gathered, refined and connected to other relevant data. In an increasingly connected society and digitization of business flows, VIDT can be leveraged to validate and secure data that is captured and need to be shared.
A difference between oil and data is that oil is not renewable; data is. A document, for example, can be saved, stored and then shared or used an infinite number of times. This could be shared sensor-data, which needs to be acknowledged by different manufacturing chain points or by algorithms and software running in a data program.
I will not make an estimate for TAM, but it is considerable (read huge). Any time there is sensitive data shared between applications or different parties, where privacy is a concern and GDPR compliance is needed, VIDT can be used.
VIDT uses hybrid anchoring and NFT. VIDT has been working with NFT (Non-Fungible Token) tech long before NFTs became a thing in 2021.
Any business or DApp (publishers) can utilize the VIDT data integrity platform to secure their assets. Their API is compatible with all major programming languages, making it flexible and accessible. Through the API, publishers can anchor data on the blockchain. To get widespread adoption, VIDT realized that they needed to make their tech as accessible as possible. As most of us have experienced, cryptos are not always so user-friendly. To achieve this they:
The VIDT API is the recommended way for businesses and organizations to use the data integrity platform. It is a more efficient, cost-effective and straightforward way compared to connecting to the VIDT private cloud. However, the private cloud still providers all resources for businesses to ingrate their system to VIDT's ecosystem.
VIDT has an architecture that can handle massive volumes of data, with all secure blockchain anchoring levels done speedily. As with any software or product, to see adoption, ease of use and accessibility are needed. VIDT has a very low barrier for adoption due to its compatibility with programming languages, allowing for low friction integration with any other business software and the optionality of utilizing cloud storage in the private cloud.
One of the best things about VIDT is that it has real-world use cases, with traction and increasingly more adoptions. VIDT serves use cases that involve the protection of data or files like certificates, sensor data, invoices, university diplomas or NFT from unwanted manipulation, protecting the integrity and value of the assets.
Beyond use cases of NFT, VIDT are integrated to (not all real-world use cases are listed, there are more!):
Airbus design, manufacture and deliver industry-leading commercial aircraft, helicopters, military transports, satellites and launch vehicles, as well as providing data services, navigation, secure communications, urban mobility and other solutions.
IBM's IoE (Internet of Environments) that is used to sense and analyze environmental data like micro-dust, humidity, CO2-levels and temperature.
Trusted by some of the biggest companies in the world, Navarik designs, develops and operates enterprise-grade SaaS (Software as a Service) software globally. Helping oil and energy companies build cloud-ready applications.
Krohne is a world-leading manufacturer and supplier of solutions in industrial process instrumentation; oil & gas, water & wastewater, chemical & petrochemical, food & beverage, power & energy, minerals & mining and marine.
$LTO Network and $VIDT Datalink are actually one and the same. At the end of 2020, these two, already intertwined Dutch blockchain companies merged into one but remain as separate entities, separate roadmaps, different utility and different tokens. LTO Network leverage VIDT's front-end, plug-and-play verification solution. LTO is also a hybrid blockchain. Their mission is to create and maintain a fully decentralized blockchain infrastructure to be used by businesses, helping them to create value.
CMS is among the top ten global law firms. They have 77 offices, in 70 cities, across 43 countries. CMS Law is made up of 4,800 lawyers that offers business-focused advice customized to customer and client needs, locally and in multiple jurisdictions.
AmSpec Services LLC independently measure and analyze petroleum and petrochemical products through the US, Caribbean, Latin America and around the world.
The Dutch Blockchain Coalition (DBC) is a joint venture between the Dutch government, knowledge institutions and industry. DBC's mission is to advance blockchain applications to leverage blockchain technology to enable trust, welfare, prosperity and security for citizens, companies, institutions and government bodies.
A Dutch business university. One of five prestigious private universities in Holland.
Procentec is an HMS group member (large global management group) that supply innovative solutions, training and consultancy to the industrial automation market. The industrial automation market is expected to be worth $326.14 billion by 2027. It is a market that's poised for growth through Industry 4.0, 5G wireless technology and a greater demand for automation in industrial processes. Procentec serves this market by developing and manufacturing automation products for ProfiBus, ProfiNet and Industrial Ethernet. They have over 18 different products listed on their website. Including ProfiTrace, an engineering mobile troubleshooting and maintenance tool. ProfiHub, a solution for reliable network infrastructure. Profi-products are managed through Procentec's ComBricks solutions, which has enabled Procentec to become a world-leading manufacturer of network components for remote monitoring and remote asset management.
Procentec is leveraging VIDT to protect production infrastructure. In their website, it is stated that they utilize state-of-the-art innovations (read VIDT Datalink) to allow for rapid digitization. VIDT is used to lay the foundation of their security infrastructure, to protect firmware integrity through blockchain-powered certification. The Procentec Verification Terminal can handle large volumes of files. Each file is verified in under five seconds by leveraging the VIDT API and the blockchain.
Procentec is also developing a "Lockbox" solution, further utilizing the technology of VIDT. Little is known of Lockbox. Going by the name, we would assume that it leverage the optional, private cloud storage that VIDT offer their customers.
I must admit, when I started analyzing VIDT Datalink, I did not think that there was much upside in NFT. Most of you have probably noticed that many cryptos are riding the hype by adding NFT to their roadmap and even implementing applications related to NFTs. Very, very few of these projects will capture any part of the NFT market. I knew that VIDT is NFT-ready, but I did not attach much value to it. After analyzing VIDT, I have changed my view on VIDT + NFT. There is a considerable upside, working NFT projects and a lot of interest from businesses and organizations.
Amsterdam Vintage Watches (AVW)utilizes VIDT to authenticate and secure data integrity of ownership of collectibles and luxury goods. Amsterdam Vintage Watches specialize in the trade of rare and fine watches. They trade with brands like Rolex, Patek Philippe, Audemars Piquet & Cartier. Situated in Amsterdam, Holland, they are a global go-to address for watch collectors from all over the world.
This is a real-world business use case of NFT where a super rare 1956 Rolex Milgauss (best-recorded condition) had its authenticity secured and ownership recorded on the blockchain for provenance purposes.
AVW issued and anchored the certificate of authenticity of the 1956 Rolex Milgauss, containing descriptions and high-res macro photos. The file is assigned a digital fingerprint (hash) and included in an exclusive, non-fungible token belong to the watch. There is only one real-world copy of this super rare watch, and there is only one NFT, both belonging to the owner of the watch.
The idea is that this NFT, as part of any transfer of the watch from one owner to another (collectible watch are traded between collectors), Similarly to a receipt or invoice, the NFT together with the watch proves legitimate ownership. The NFT is not vulnerable to manipulation. As the NFT transfer from owner to owner in the future, this first NFT transfer and all future transfers will be recorded on the blockchain, building a tamper-proof trace of provenance.
Vintage watches are extremely valuable, the industry is riddled with forgeries, and fraud is common. A process involving expert evaluators, a certificate, NFT and VIDT technology, can mitigate issues of forgery and fraud.
The luxury and collectible watch market is worth billions of dollars. The market for new luxury Swiss watches alone was worth over $20 billion alone in 2020. Other 'Collectibles'-markets, like fine art, is worth €37.7 billion. The collectible wine market size is over $24 billion. In theory, the usage of VIDT tech in real-life rare collectibles is huge. Think antiques, jewelry, cars, coins, comics, coins and stamps. Many blockchain projects will address this market. It is improbable that this is a one-takes-all blockchain area but rather an industry where several blockchains can be utilized. Maybe VIDT could capture the vintage watch market, for example.
It would be difficult to give an exact TAM for the collectibles market, but it is safe to say that it is in excess of $100 billion. One thing is sure, VIDT is already being adopted in NFT use cases and there looks to be more demand for VIDT in the physical/NFT rares & collectibles space. I am generally on the fence when it comes to the recent NFT craze. But here, I see a legit use case for NFT to solve a real-world problem. VIDT has started to capture the market with their fully functional, available and cost-effective technology.
The tokenomics of VIDT is great. On their site they humble-brag that its tokenomics are one of the best in crypto. I tend to agree.
$VIDT is integral to the validation process utilized by businesses and organizations:
The 20% used is burnt on a monthly basis, meaning that there is a deflationary burn mechanism. The fixed 20% is applied to the total volumes during a month. This means that the deflationary burn mechanism grows in parallel with the usage of the VIDT platform. Effectively, the maximum supply is ever-decreasing. At the time of writing, the VIDT maximum supply is 58,501,137. The next burn is on 31/03/2021. The last one, in February, had a total burn of 59,434 $VIDT.
As a $VIDT holder, this is good news. The use of the VIDT platform drives scarcity and naturally increases the price of $VIDT. So, even without the market driving the price up for $VIDT, the value of the coin is bound to increase because of its integral part in the utility of $VIDT coins.
Earlier this year, VIDT introduced staking. I plan to write an updated how to stake VIDT guide in a couple of days. I am not staking my VIDTs yet, but I plan to do it. I'll link the post on how to do it once I started staking my own holdings.
To participate in the VIDT staking program, you have to access this page from a desktop browser.
$VIDT staking overview:
$VIDT is closely linked to $LTO, not only through the merger. Their technology is basically married to each other. Through this relationship they have opened up a boosted staking program where you can earn more $VIDT through the basic staking by staking $LTO. Through this booster option it is possible to earn an additional 75% $VIDT on the basic 6% APY.
There is another option to further boost your staking by providing liquidity in liquidity pools. This can earn you an additional 75%. For more information, visit the link above and go to the VIDT Staking Dashboard.
A couple of Twitter users got back to me and asked about a conclusion to this VIDT coin review. I was also asked to make a comparison with other projects that have similar use cases which could be seen as competitors of VIDT. I will gather some information about other projects in the same space and make a comparison and publish it here on the site when it's ready.
My answer regarding competitors is:
Similarly to software, there is rarely just one solution to a problem. Think about operating systems for computers, project management tools for businesses, digital marketing tools for ad agencies and so on. There are often many, many competitors competing for a slice of the market. In the case of VIDT, their blockchain technology is applicable to so many markets. Many of which have total addressable markets in the range of hundreds of billions. If VIDT can capture only a small piece of that pie they will be successful.
What is important to note is that VIDT is already widely adopted. Many businesses and organizations have integrated into their data integrity platform. As I mentioned before, VIDT Datalink is solving real-world problems as you are reading this. In a world full of speculation and blockchains that are still being developed and working on delivering what they promise - VIDT is already delivering. To me, that is one of the most important aspects, tech that is already delivering versus tech in development which may not see adoption.
VIDT has a very low market cap and its tokenomics and burn mechanism will ensure that the value of the token goes up as it becomes more scarce. That is bound to happen regardless if the price of VIDT goes up from speculation from traders.
VIDT is a utility coin that can be seen as medium risk in a world full of high-risk cryptocurrencies.
$VIDT is available to buy and trade in numerous exchanges and sites:
$VIDT is available in the following pairs: VIDT/BUSD, VIDT/BTC, VIDT/USDT, VIDT/BNB, VIDT/ETH, VIDT/WETH, VIDT/WBNB.