VeChain Vs. Ethereum 2.0 is a popular discussion that crypto traders have when attempting to delve deeper into smart contract-capable blockchains. Both of these networks offer fast performance, passive income staking opportunities, and smart contract programmability.
Understanding the differences between Ethereum 2.0 Vs. VeChain can help you to improve your effectiveness in the market.
What is Ethereum 2.0?
Ethereum began as the first smart contract programmable blockchain. This feature changed the market forever as it enabled decentralized networks to run protocols and systems more effectively. The original structure of the Ethereum network leveraged a PoW (Proof of Work) consensus like Bitcoin.
During a massive hack during the Ethereum DAO launch, the network founders decided to hardfork the blockchain to prevent the loss of millions in crypto. The decisions led to the creation of Ethereum Classic and Ethereum. The latter of which recently converted over to a PoS (Proof of Stake) network as a way to reduce congestion and improve efficiency, which we are calling Ethereum 2.0.
Source – TechCrunch London – Vitalik Buterin Ethereum Founder Ethereum 2.0 Vs. VeChain
What is VeChain
VeChain (VET) seeks to function as a valuable bridge between Defi and Cefi networks. This enterprise-grade blockchain was specifically built to help ease some of the pain points of the logistics sector. The protocol integrates advanced sensors and real-time blockchain consensus to create a new level of logical awareness and planning.
VeChain was created by Sunny Lu and launched on the Ethereum blockchain at first. After raising funds, the network launched its blockchain and tokens.
Today, VeChain offers a way for major corporations to save millions in shipping and logistics. It also supports programming and Dapps.
What Problems Was Ethereum 2.0 Built to Alleviate?
Ethereum 2.0 was a major upgrade that was specifically designed to help reduce network congestion and alter consensus. The original structure of Ethereum was designed with a function that increased network fees alongside congestion. This system worked at first because the added fees reduced spam on the blockchain.
When Ethereum released the ERC-20 token standard, everything changed. The network became the clear network pioneer in terms of DeFi and token issuance. This added congestion caused the network to lose capabilities due to lag and high fees. The results were that people began to migrate to other competing networks. The Ethereum 2.0 upgrade was meant to eliminate these issues and bring the network in line with today’s most advanced networks.
Ethereum 2.0 does away with the high energy demands of PoW networks. The system uses less energy and is faster. Additionally, anyone can stake their tokens and secure returns if they meet the minimum requirements.
What Problems Was VeChain Built to Alleviate?
VeChain helps to resolve several issues that have long hurt the logistics sector. The integration of sensors and the capabilities of the network to provide large-scale real-time tracking of these massive systems helps to alleviate the lack of transparency that occurs in the sector.
Unlike centralized networks, decentralized networks become more responsive as more members join. Consequently, these protocols are great for reducing last-mile issues such as data degradation and delays. VeChain removes centralized choke points from the logistics sector which improves efficiency.
One of the biggest issues with logistics is the fact that the network is so large and expands the entire globe. When you have such a large network, even processing all the data can cause delays. VeChain integrates multiple steps to enable the tracking of a massive amount of data including quality, authenticity, storage temperature, and geo-location.
How Does Ethereum 2.0 Work?
The upgraded version of Ethereum relies on network nodes called validators to remain secure. Anyone can become a validator but they must meet certain criteria. You will need to have reliable internet connections. Secondly, you have to meet the deposit requirements of 32 ETH. Those who can’t meet this deposit can leverage staking pools to still secure rewards.
Unlike the previous consensus that required miners to consume massive amounts of electricity, the upgraded model is viewed as being more sustainable. Additionally, some perceive it as more democratic because users do not need to purchase a mining rig or learn new technical skills. These upgrades help to improve Ethereum DeFi capabilities by reducing costs.
Token – ETH
Ether (ETH) is the main utility token for the network. This token can be used as a cryptocurrency but its primary purpose is to function as the main token on the Ethereum blockchain. Developers use ETH to pay for smart contract executions. Regular users pay fees using ETH.
Notably, ETH is one of the top cryptocurrencies in the world.
How Does VeChain Work?
VeChain can provide immense upgrades to the logistic sector thanks to the integration of sensors and RFID technology. The use of smart sensors improves all aspects of the logistics sector when coupled with the monitoring capabilities of blockchain tech. VeChain employs smart chips in the form of Radio Frequency Identification (RFID) tags.
These sensors can monitor and send vital data regarding shipments. Since the data is broadcast in real time, it enables the logistics firm to improve efficiency. VeChain users can see crucial info on shipments including authenticity and its current condition. The network is one of the largest to support IoT (Internet of Things) tech. There are currently billions of IoT devices in the world.
Token – VET
VET is the main utility token for the VeChain ecosystem. This token is used to send value internationally in a permissionless manner but its primary purpose is to pay for transactions and smart contract executions on the network. VET is a flexible asset and can be found on multiple top CEXs (centralized exchanges).
How to Buy VeChain (VET) and Ethereum (ETH)
Currently, Ethereum (ETH) and VeChain (VET) are each available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Ethereum (ETH) and VeChain (VET). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
VeChain Vs. Ethereum 2.0 – Smart Networks Geared at Different Clientele
When you delve deep into the Ethereum 2.0 Vs. VeChain discussion, it becomes obvious that Ethereum is a broad network while Vechain has a niche focus. Both networks can support the Dapp programmability. However, Ethereum has a massive community making it ideal for the average user. In comparison, VeCahain is best suited for enterprise logistic operations.
To learn more about each of these projects, make sure to visit our Investing in Ethereum 2.0 and Investing in VeChain guides.
