Learning the crucial differences between Cardano (ADA) and VeChain (VET) is one way to improve your market understanding. These projects are both popular in the market, albeit serving different clientele. Here’s everything you need to know about Cardano Vs. VeChain.
What is Cardano?
The crypto market raised eyebrows when two Ethereum developers left the project to start their blockchain. The pair promised a network which would help to alleviate many of the concerns faced by Ethereum developers at the time. Jeremy Wood and Charles Hoskinson founded Cardano intending to improve mass blockchain adoption.
The network didn’t have to wait to start making headlines, having hosted a record-setting ICO (Initial Coin Offering) which netted the project $62 million in September 2017. These funds were to earmarked to improve the third-generation blockchain.
One of the main unique aspects of Cardano is its academic relations. The protocol wanted to be the first blockchain created using scientific methods. As such, the platform was created in conjunction with academics and leading organizations. The process included multiple peer reviews and academic theory. Today, the network is a popular option for traders.
What is VeChain?
VeChain was an early contender within the market, having entered back in 2015. Structured around the goal of reducing supply chain deficiencies, VeChain has managed to become a disruptive force.
VeChain was a pioneer in the market as one of the first enterprise blockchains available to the public. The protocol is open to use and integrates a variety of capabilities that improve lifecycle management while reducing counterfeit, fraud, and overall costs. This is achieved through integration of advanced technologies like IoT.
Notably, the project seeks to leverage the best aspects of both centralized and decentralized economies in an attempt to create a more usable platform for everyone. The network has proven to be reliable and highly interoperable with legacy systems, allowing businesses to improve logistics while reducing costs.
VeChain was founded by Sunny Lu – a former executive with Louis Vuitton China. It was there he learned the critical errors that most supply chain systems experience.
What Problems was Cardano Built to Alleviate?
There is a long list of issues that Cardano was built to prevent or reduce. The network developers first had experience with Ethereum in terms of network congestion and gas fees. They focused on improving these aspects and providing more programmability to the market.
Lack of Academic Process and Standards
Cardano’s approach to the market is coordinated and well thought out. The protocol seeks to introduce new standards and business practices to the market – each critical steps towards driving innovation and adoption of technologies.
What Problems was VeChain Built to Alleviate?
One of the main problems that VeChain was built to eliminate is a lack of transparency. The logistics sector is currently comprised of a mesh of different digital and paper-based systems. These systems don’t meld together well, and every time they interact there is a risk of serious error.
The thing to remember is that not all cargo can have errors. For example, when shipping luxury clothing a mistake could result in counterfeit clothing or fraud. However, when discussing medical supplies, counterfeit or lackluster monitoring can result in deaths. Sadly, this is already the case with thousands of people dying yearly from counterfeit medications.
Users Want More Transparency
VeChain brings more transparency to the market. The protocol leverages the capabilities of blockchain technology and consensus protocols to monitor huge swatches of data in real-time. This information helps to ensure that the logistics cycles remains secure and untampered. It also eliminates issues like delayed data transmission.
VeChain is ideally suited for today’s logistics environment because it can handle massive amounts of data simultaneously. The protocol enables shippers to monitor metrics such as quality, authenticity, temperature, health, and status. As a result, this trust-free structure reduces costs and improves responsiveness for firms.
How Does Cardano Work?
Cardano leverages a new Proof-of-Stake (PoS) consensus called ‘Cardano Ouroboros’ to provide stability and secure the network. This system enables users to stake their tokens to secure returns and validate the state of the blockchain. Staking is a better option for many users because they don’t need to purchase mining rigs to secure returns.
The network also introduces randomly chosen lenders that approve transactions. The network is unique in that it leverages epochs to reduce the amount of time required to convert the state of the network. An epoch is a snapshot of the start of the blockchain, and is an effective way to reduce time. In order to be effective though, an epoch must be taken from deep in the ledger.
Token – ‘ADA’
ADA is the network’s utility token. It’s named after the first computer programmer and popular mathematician Ada Lovelace. ADA can be used as a cryptocurrency to send value, in addition to being used to pay out rewards. There are 45,000,000,000 ADA slated for release.
How Does VeChain Work?
VeChain functions by combining multiple technologies to improve monitoring capabilities. The system integrates special smart chips or Radio Frequency Identification (RFID) tags that can monitor the condition of articles. Some sensors are integrated to keep track of the vital stats of products during shipping. This information is sent to network nodes in real-time which makes a far better alternative to the status quo.
Companies gain the ability to verify the authenticity and condition of goods in transit. These approaches can help save large operations on costs while reducing the complexity of these massive supply chains. The network also integrates IoT tech to provide another layer of monitoring capabilities.
IoT is the term used to describe the billions of smart devices currently in use globally. To qualify as a smart device an item simply needs a sensor and the ability to communicate online. Everything from your phone to your Tesla can be considered an IoT device. This technology is a game changer because it provides an affordable way to monitor a massive amount of data in near real-time.
Token – ‘VET’
VET is the main utility token for the network, and enables users to send value internationally in a permission-less manner. The protocol also uses a secondary token called VeChainThor Energy (VTHO). This token is sued to power smart contracts like Ethereum uses Gas.
How to Buy Cardano (ADA) and VeChain (VET)
Currently, Cardano (ADA) 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 purchasing most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
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.
Cardano Vs. VeChain – Two Projects that Could Work Together One Day
Given the different purposes each of these networks serve, it’s possible they could one day work together. Cardano remains the academics blockchain with major support from universities, while VeChain pioneers the logistics sector through its unique strategy and advanced technology. Both of these projects show long-term potential for traders.