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Ethereum's Distance from Reality: Deloitte Touche Tohmatsu Limited: VeChain, Permissioned Private Chains More Suitable for Enterprise Use Cases

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Deloitte, one of the world's four major auditing firms, recently highlighted in a report titled "2020 Blockchain Trends" that VeChain is currently the leading blockchain network in the industry. The report also suggests that VeChain and the enterprise-grade open-source blockchain platform R3 Corda are more advanced than mainstream public chains like Ethereum.

In the report, Deloitte emphasized the potential of blockchain technology, stating that the prevalent question in enterprises will shift from "Is this technology useful?" to "How can we make this technology work for us?"

Comparison of VeChain, R3 Corda, and Ethereum

Deloitte compared VeChain, R3 Corda, and Ethereum, focusing on supply chain. The report mentions that while Ethereum offers high decentralization, VeChain and Corda networks provide higher security and better scalability than Ethereum.

The report contrasts the challenging "impossible triangle" in blockchain (decentralization, scalability, security), and in the middle triangle shown below, VeChain and Corda form more balanced equilateral triangles, while Ethereum forms a right-angled triangle, with a significantly higher emphasis on decentralization.

Blockchain Impossible Triangle Comparison (Source: Deloitte)

Deloitte believes that balancing these three standards will make specific blockchain projects the preferred choice for users or developers looking to build solutions.

Permissioned Private Chains Best for Enterprise Applications

The report categorizes public, private, permissioned, and permissionless chains into four quadrants, finding that "permissioned private chains" are the most suitable category for developing blockchain frameworks for enterprises. This category includes Enterprise Ethereum (EE), Hyperledger, Quorum, Corda, etc., with the following characteristics:

  • Require permission to join and share data
  • Authorized nodes are needed to read and verify
  • High scalability

The report indicates that based on numerous past enterprise use cases, permissioned private chains often align best with enterprise use cases.

Highest Match with Permissioned Private Chains (Source: Deloitte)

Deloitte also expresses optimism about the future of blockchain technology in the report, suggesting that the token economy could reduce operational costs in the financial industry, leading to more convenient transaction models and potentially unlocking trillions of euros in illiquid assets.

In reality, Deloitte remains bullish on the Ethereum platform. Their Chief Technology Officer, Antonio Senatore, mentioned at the Consensus 2019 conference last year that over half of their projects were built on Ethereum. However, Deloitte believes in a multi-platform development approach and sometimes considers user needs, where platforms like VeChain can cater to specific use cases for users with different requirements.