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Chainlink Vs. VeChain – What’s the Difference?
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Table Of Contents
The first thing to understand when discussing Chainlink (LINK) vs VeChain (VET) is that these networks serve very different roles in the market. Chainlink was built to solve oracle integration problems, whereas, VeChain is a logistics-focused network. Interestingly, these networks could work together one day as Chainlink provides services that VeChain could leverage. Here is everything you need to know about Chainlink (LINK) vs VeChain (VET).
What is Chainlink?
Chainlink was an early contender in the market but not as a traditional blockchain. Chainlink is a decentralized network of oracles that are off-chain sensors which can communicate data to and from the blockchain. These oracles are a critical component in the market today with everything from DEXs (Decentralized Exchanges) to Dapps relying on these sensors.
Source: Twitter @chainlink
Chainlink entered the market in 2014 under the name SmartContract.com. By 2017, the network had shifted its focus purely on providing enhanced oracle functionality to the market. The company caught the attention of the market after securing $32 million during a public crowd sale. Two years later, Chainlink partnered with Google to improve its cloud services.
What is VeChain?
VeChain entered the market in 2015 with the specific goal to improve the logistics sector. Sunny Lu is the founder of VeChain – a man who was very familiar with the inefficiencies of the markets. He worked as an executive for the stylist firm Louis Vuitton before making the jump to the blockchain.
VeChain was one of the first enterprise-focused blockchains to launch. The network enables manufacturers to track and manage their supply chain flow using advanced technologies like consensus to achieve real-time data capabilities. The platform integrates seamlessly into many legacy systems as part of the firm's onboarding strategy.
What Problems was Chainlink Built to Alleviate?
The main problem that Chainlink was designed to defeat is oracle centralization. There are many instances when communicating data to and from the blockchain and other systems is essential. In the past, centralized oracles were used for these tasks. However, the main issues with this approach were that these systems were unreliable and had no way to cross-reference their results.
Once data is added to a blockchain it is permanent in most instances. As such, faulty data can cause a myriad of issues for systems operators and developers. Chainlink introduces a variety of features that enable the network to provide verifiable data from oracles across a decentralized network.
What Problems was VeChain Built to Alleviate?
There are a lot of of issues with today's logistics sector. The inefficiencies in the market have led to billions in losses and rising counterfeit and fraud. One of the main issues that VeChain seeks to remedy is the overall lack of transparency in the current logistics sector. There is no way for manufacturers to track their items in real-time without data transmission delays using the current systems.
Source: Twitter @vechainofficial
VeChain leverages a network of sensors and consensus capabilities to provide the network with the ability to monitor massive amounts of data in real-time and for no cost. This strategy enables firms to focus on specific delays and costs to further improve their logistics operations.
How Does Chainlink Work?
Chainlink operates as a decentralized network of off-chain sensors called oracles. These sensors can be set up to monitor nearly anything from crypto prices, to the weather, or even payments made. Oracles are extremely flexible and operate at the core of many of the top-performing Dapps today.
Chainlink Service Level Agreement Contract
Chainlink enables developers to leverage a redundant self-healing oracle network. When a developer makes a request in the Chainlink ecosystem, the network will automatically determine how many oracles are required and register the event on the blockchain. From there, oracles will take up the request which initiates the Chainlink Service Level Agreement (SLA) Contract. This contract will then break down into three further smart contracts.
Chainlink Reputation Contract
The Chainlink Reputation contract will verify that the oracles are reputable and members of the Chainlink community. Notably, the system ranks all oracles based on their past performance.
Chainlink Order-Matching Contract
The Order making contract will then get sent to the network nodes. The nodes that qualify for the job will be able to bid on the project and secure returns for their efforts. Notably, the system determines the type and amount of nodes needed to complete the actions.
Chainlink Aggregating Contract
The Chainlink Aggregating Contract runs a final cross-check on the data to ensure it's correct before sending it to the blockchain. This system can reconcile incorrect data and validate new information as it arrives. Only data that passes this final check will make it to the distributed ledger. Notably, all users must hold the utility token LINK to interact with the features of the network.
How Does VeChain Work?
VeChain combines a variety of cutting-edge technologies to lower the workload and improve efficiencies in the market. The system is set up to leverage Radio Frequency Identification (RFID) tags to improve monitoring capabilities. This technology enables VeChain users to track items across the globe in real-time. They can also track additional information including authenticity, storage temperature, overall quality, and status.
VeChain was built to be scalable to meet the needs of all types of enterprise logistics. The protocol operates as a trust-free ecosystem that enables massive data collection over an international network of sensors. The developers seek to further improve the system using the Internet-of-Things (IoT) tech moving forward.
VET is the cryptocurrency for the VeChain system. Users can make payments and transfer value internationally in seconds and for pennies. This token is required when users interact with the network via Dapps. On the back end, the network leverages a token called VeChainThor Energy (VTHO). VeChainThor Energy is used to initiate smart contracts.
How to Buy Chainlink (LINK) and VeChain (VET)
Currently, Chainlink (LINK) 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, Singapore, UK, & USA residents. Canadian residents are prohibited.
Discount Code: EE59L0QP for 10% cashback off all trading fees for non-USA residents. USA residents: Trade $100 & Earn $10 in 30 days after account registration.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Chainlink Vs. VeChain – Projects with Longevity in the Market
When you review the history of these projects it is easy to see that both have been long-time contenders in the market. It would be hard to decide what protocol is the best when discussing Chainlink (LINK) vs VeChain (VET) because they are two networks that could end up leveraging each other's services. As such, they are both worth keeping an eye on in 2022.
To learn more, make sure to visit our Investing in Chainlink and Investing in VeChain guides.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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