What is The Difference Between Chainlink (Link) and VeChain?

Table of Contents

What is VeChain?

VeChain entered the market in 2015 with the specific goal of improving the logistics industry. Sunny Lu is the founder of VeChain – someone who is very familiar with market inefficiencies. Before switching to blockchain, he worked as a senior manager for fashion company Louis Vuitton.

VeChain was one of the first enterprise-focused blockchains to launch. The network enables manufacturers to track and manage their supply chain flows using advanced technologies such as consensus to achieve real-time data transmission. The platform integrates seamlessly into multiple legacy systems as part of the company’s onboarding strategy.

https://www.vechain.org/

What is Chainlink?

The cryptocurrency market was shocked when two Ethereum developers left the project to start their own blockchain. The pair promised a network that would help alleviate many of the concerns Ethereum developers were facing at the time. Jeremy Wood and Charles Hoskinson founded Chainlink with the intention of improving blockchain passivity among the majority of users.

The network didn’t have to wait long to start attracting attention. When organizing an ICO (Initial Coin Offering) set a record. Brought the project $62 million in September 2017. These resources are dedicated to upgrading the third generation blockchain.

https://chain.link/

One of the main unique characteristics of Chainlink is its relationship with education. This protocol wants to be the first blockchain created using scientific methods. Therefore, the platform is created in collaboration with professors and leading institutions. This process includes multiple peer reviews and academic theory. Nowadays, this network is a popular choice for traders.

What problem do VeChain and Chainlink solve?

Chainlink

The main problem that Chainlink is designed to defeat is oracle resource centralization. There are many cases when transferring data to and from blockchain and other systems is important. In the past, centralized oracle sources were used for these tasks. However, the main problem with this approach is that these systems are unreliable and there is no way to compare their results.

Once data is added to the blockchain, it is usually permanent. Therefore, erroneous data can cause many problems for system operators and developers. Chainlink introduces many features that help the network provide verifiable data from oracle sources on a decentralized network.

Vechain

There are many problems in the logistics industry today. Market inefficiencies have led to billions of dollars in losses and an increase in counterfeiting and fraud. One of the main problems that VeChain tries to overcome is the overall lack of transparency in the current logistics industry. There is currently no way for manufacturers to track their goods in real time without data transmission delays using current systems.

VeChain leverages a network of sensors and consensus capabilities to provide the network with the ability to track large amounts of data in real-time and at no cost. This strategy helps businesses focus on specific delays and costs to further improve their logistics operations.

VeChain Vs Chainlink: How it works

Chainlink

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, to payments being made. Prophets are versatile and operate at the heart of many high-performance Dapps today.

Chainlink Service Level Agreement

Chainlink allows developers to leverage a self-healing network of oracles based on SLA principles. When a developer makes a request in the Chainlink ecosystem, the network automatically determines how many oracles are needed and registers the event on the blockchain. From there, the oracle will receive the request, initiating the Chainlink Service Level Agreement (SLA). This contract will then split into three other smart contracts.

Chainlink Evaluation Contract

The Chainlink Evaluation Contract will verify whether oracles are reputable and members of the Chainlink community. Notably, the system ranks all seers based on their past performance.

Chainlink Order Contract

The Order Contract will then be sent to the network nodes. Nodes that qualify for the job will be able to bid on the project and guarantee a profit for their efforts. Notably, the system determines the type and number of buttons needed to complete actions.

Chainlink Aggregation Contract

The Chainlink Aggregation Contract runs a final check on the data to ensure that it is accurate before sending it to the blockchain. This system can balance data inaccuracies and verify new information as it arrives. Only data that passes this final check will be transferred to the distributed ledger. Notably, all users must hold the LINK utility token to interact with the network’s features.

VeChain

VeChain combines many advanced technologies to reduce work and improve performance in the market. The system is set to utilize radio frequency identification (RFID) tags to improve surveillance capabilities. This technology allows VeChain’s users to track items globally in real time. They can also track additional information including authenticity, storage temperature, overall quality and condition.

VeChain is built to be scalable to meet the needs of all types of enterprise logistics systems. The protocol operates as a trustless ecosystem, allowing the collection of large amounts of data across an international network of sensors. Developers are looking to further improve the system using future Internet of Things (IoT) technology.

VeChain Vs Chainlink: Tokens

Token – Link

The LINK token is used in the ChainLink network to operate Chainlink nodes allowing data retrieval from external data sources. Therefore, the value and demand for using LINK tokens depends largely on the number of mining developers running on this network.

There are 2 main use cases of LINK:

Developers pay LINK tokens to node operators to provide Oracle services
LINK can be used by node operators as collateral to provide Oracle services

Token – VET

VET is the main utility token for the network. Allows users to transfer values internationally without permission. The protocol also uses a secondary token called VeChainThor Energy (VTHO). This token is used to power smart contracts in the same way Ethereum uses Gas.

VeChain Vs Chainlink – Projects with Longevity in the Market

When looking at the history of these projects, it is easy to see that both are long-term players in the market. It can be difficult to decide which protocol is best when discussing Chainlink (LINK) vs VeChain (VET) as these are two networks that can leverage each other’s services. Therefore, both are worth paying attention to in 2022.

Conclusion

Through the comparison article between VeChain Vs. Chainlink above, azc.news hopes readers will grasp the necessary information to make their own investment decisions. Wishing you a successful investment!