Deloitte: VeChain safer and more scalable than Ethereum (ETH)

By June 17, 2020Ethereum
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  • The audit firm Deloitte has published a report on the advantages of VeChain compared to the Ethereum blockchain.
  • Deloitte rates VeChain as a safer and more scalable blockchain, but Ethereum as a better platform for the financial industry.

The auditing firm Deloitte has published a report entitled “5 Blockchain Trends for 2020”. There, Deloitte reviews the evolution of the industry in 2019 and refers to 2020 as the beginning of the blockchain decade. In that sense, Deloitte made a rating of the leading blockchain platforms and how they can retain their positions in 2020.

For Deloitte VeChain is the platform that has more scalability and security than Ethereum, but less decentralization. Deloitte refers to these 3 features (security, scalability and decentralization) as the blockchain trilemma and, in that sense, VeChain reaches a better balance making it a better platform for its users, as Deloitte states:

(…) these three characteristics is thus a major consideration for any blockchain network provider, as well as for their customers who choose to build their solutions on the network.

The audit firm also predicted that by the end of 2020, leading platforms like VeChain will be able to maintain their position by offering a varied combination of features. In that way, users and companies will be able to build solutions and develop use cases on their platforms more easily. Deloitte named the 4 platforms that will remain in the race for leadership in the blockchain sector: Corda, Hyperledger, Ethereum and VeChain.

Will VeChain be able to stay in first place?

Through a survey, Deloitte is also determined trends and priorities for investors in 2020. According to the results of their survey, in 2020 there will be a considerable investment, 40% of the respondents said that they will invest more than $5 million in blockchain technology during the year. In addition, the survey found that 86% of the companies that are developing blockchains are in the United States.

The main question that investors are asking, according to Deloitte, has changed with respect to 2019. The important thing is no longer to verify that the technology works, but how companies can make it work for them. In that sense, the investment and the blockchain teams are shaped to research key challenges for a company through 3 specific use cases.

According to the survey, the main use cases on which investors and companies will focus 2020 are data validation, data access and sharing, identity protection. VeChain is positioned to be one of the dominant platforms in these three use cases because of its high security and scalability, as Deloitte sates. Ethereum, on the other hand, is more likely to be the platform on which a new token economy is built. Both platforms could benefit from that, according to Deloitte:

A new token economy could make the financial industry more accessible, cheaper, faster and easier, thereby possibly unlocking trillions of euros in currently illiquid assets, and vastly increasing the volume of trade.

Last updated on June 17, 2020

Deloitte rates VeChain as a safer and more scalable blockchain, […]

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