Why VeChain is fundamentally different to Ethereum, EOS and other protocols

The VeChainThor Vision:

Building a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers.
VeChainThor will be the platform to support Blockchain-based business applications offering real economic and social value.

Why invest in Fat Protocols?

The Economist describes the true value proposition of Blockchain technology in their 2015 article “The trust machine.” Trust is the single biggest hidden cost of doing business. Blockchain technology can establish a new trust-free sharing business collaboration model.

Data is the oil of the 21st century. Blockchain technology allows the chance to create a new world by putting data ownership and monetization in the hands of the people who generate that data. Data is the reason FAANG Stocks are insanely profitable and some of the biggest companies in the world.

Other platforms aim to accomplish the same vision however widespread adoption has been lacking to date.

Other platforms – Technology focused

Ethereum by Vitalik Buterin is amazing. The first cryto-platform. It holds true to the ideals of the original crypto-community with a strong focus on decentralisation and security. It has encountered issues with scaling which are being actively worked on with Plasma, sharding, state-channels and Raiden network. Due to heavy decentralisation, it has issues with a borrowed governance structure (EIP) from Bitcoin.

EOS by Dan Larimer is another technological masterpiece. EOS aims to be a feeless high performance blockchain and makes progress on the scalability problem through an innovative consensus algorithm known as Delegated Proof-of-Stake. The benefits of EOS are achieved by sacrificing other elements and reflects a philosophical difference between Buterin and Larimer.

Buterin and Larimer have had some back and forth regarding their respective platforms which delivers insight into the minds of these two geniuses. Most of their disagreements hinge on the Scalability Trilemma which has been documented here.

  1. Vitalik Buterin’s original article
  2. Dan Larimer’s reply
  3. Buterin’s reply is seen as the 1st comment in Larimer’s medium post

Ethereum and EOS are innovative and have laid the groundwork for the future technological development. Other platforms such as Cardano, Stellar, NEO and NEM are making strong progress as well. However a common theme amongst these platforms are their focus on technological development rather than development of real-world use cases. They are hoping their communities will build use cases which has led to an explosion of ICOs and dApps. Sadly, only a small amount of real world value and utility has been generated from these to date.

VeChainThor – Use case focused

VeChainThor has a different philosophy compared to other platforms. From the white paper, “The ground rule of VeChain technology development is to be driven by applications. Use cases drive product development and product development drives technology development. – NOT the other way around.”

“You’ve got to start with the customer experience and work backwards to the technology, you can’t start with the technology and try to figure out where you’re going to sell it” – Steve Jobs 1997

VeChain started with the customer (enterprises) and built solutions for their business needs. In 2016 VeChain began work on four use cases with major enterprises across the globe. In 2017, the number reached to over 20, including significant partnerships. Now, in early 2018, more than 210 opportunities are in the pipeline. Three ICOs have already been announced (BitOcean, Plair platform & Mustangchain). DBET will be migrating their existing network from Ethereum to VeChain. Once main-net launches, we will see how many more projects become public. Existing consortium chains will also migrate onto the public VeChainThor protocol.

With other platforms being open source, technological innovation can be integrated into the VeChainThor network rapidly through the balanced Governance model. Multicoin Capital write a great blog post about this. VeChain’s consensus algorithm Proof of Authority is not original. Their consortium blockchain was based off Ethereum. VeChainThor will continue to stand on the shoulders of giants by “discovering truth by building on previous discoveries”.

The core business development philosophy is the key differentiating factor between VeChainThor and other platforms. Enterprises won’t adopt new technology if they don’t see a clear benefit. Enterprises don’t care about technological details, they care about their problems and an affordable solution. Smart money like PwC, DNV-GL and Breyer Capital understand this.

 

This analysis report was published by the following Reddit user: https://www.reddit.com/user/enozym111

Gvidas Beniulis

International Political Economy student & Cryptocurrency enthusiast.

Founder of OurEconomy.

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