Comparer Tron (TRX) vs VeChain (VET) Coin

Today we will speak about two cryptocurrencies that caught the public eye in 2017 amidst the ICO bubble. These assets are Tron and VeChain. Both of them feel fine after years of development and leveling up. These coins fuel the respective networks, Tron and VeChain blockchains. In this article, we will review the main features of these assets, compare them by several factors, and try to give you a good idea about the investment potential of these coins.

1. What Is Tron?
2. What Is VeChain?
3. Tron vs. VeChain (table)
4. Tron vs. VeChain (details)

What Is Tron?

Tron (or Tronix) is the native cryptocurrency of the TRON blockchain. The latter is used to host a decentralized platform to distribute exclusive entertainment content. The project was launched in 2017 by Chinese entrepreneur Justin Sun. 

The project has ambitions to change the entertainment industry, giving content creators more control over the works they share and giving them better monetization opportunities. 

The Tron coin is based on the branded Tron blockchain. As of July 2022, the coin is doing great, being among the top 20 cryptocurrencies by market cap. For the most part, the Tron price was around two-three cents. The 2021 crypto rally helped Tron reach a new average price of close to 6 cents. As of July 2022, the price slightly exceeds 6 cents. The market cap of the coin is around $6.2 billion. 

The way to the top wasn't that smooth, as the project has been under attack by critics all the time. For instance, the Tron whitepaper was exposed as plagiarism. Vitalik Buterin is one of the vocal critics of Tron. The lack of the product ready for use is one of the main reasons for negativity. However, Tron continues to grow and develop. Let's see what happens to the platform in the future. 

What Is VeChain?

VeChain is a native token of the blockchain of the same name. The project was conceived in 2015. ICO took place in 2017. Until 2018, the project had a different name. The primary purpose of the VeChain blockchain is information storage and management. The blockchain uses a rare consensus mechanism called Proof-of-Authority. 

VeChain tokens are used for the validation of transactions on the VeChain blockchain. Another possible use of VeChain tokens is staking. Staking VeChain tokens brings rewards in THOR Power tokens (THOR is used to pay transaction expenses on the VeChain blockchain).

VeChain struggled to reach a 1 cent per coin price for a couple of years after the release. The 2021 crypto rally propelled the price to the nearly $0.3 mark. In 2021, the price considerably went down, dropping below 10 cents. As of July 2022, VeChain is over $0.02 per coin. The market cap is around $1.7 billion. 

Tron vs. VeChain (table)

Tron vs. VeChain (details)

The price and the market cap 

Tron has a more substantial presence in the media. The coin is better known than VeChain. Tron costs more than VeChain and has a clearly more significant market cap. Despite the fact that VeChain might be a less controversial project, Tron has been growing faster. Let's see what the future holds for the investors of both coins, though. 

Popular markets

Both coins are well-presented on the most prominent crypto trading platforms. However, VeChain and Tron are unavailable on Coinbase, which is a severe drawback. US residents can buy Tron on a popular American exchange like Kraken. VeChain is not available on Kraken. In general, buying/selling Tron is more accessible than buying VeChain.

Platform

Both Tron and VeChain use their custom blockchains. It makes these platforms fully independent and original. Although one can say that interoperability is hindered, this is not such a big deal as soon as several notable platforms are solving this problem.

Consensus mechanism

VeChain utilizes a rare consensus mechanism known as Proof-of-Authority. It has similarities to Proof-of-Stake (used by Tron and many other platforms). Unlike PoS, the PoA-based networks require the participation of the identified validators. Their decisions impact their credit in the eyes of the community, so it stimulates them to work better. It is hard to say if PoA or PoS is a better consensus algorithm. It heavily depends on your approach to anonymity. 

Products

VeChain products target people interested in IT, cryptocurrencies, education, etc. The platform attracts those who want to get new knowledge or wish to be rewarded for searching for code flaws of VeChain. Tron is rather an opposite thing. It incentives people to participate in prize drawings and giveaways in order to spread the word about Tron. Any person without specific interests or skills can use Tron products because they come as something that can make you richer. It is one of the reasons why Tron is so recognizable.

Use cases

Tron aims to revolutionize the entertainment distribution sphere. So far, the platform has better succeeded in self-promotion. Nevertheless, the goal is excellent as many content creators wish to have a more direct way to deliver their products to fans. VeChain is far from being very original in its purpose, as well. Information management is an important task that can be significantly improved thanks to blockchain. Will VeChain be the leader among similar blockchain-based projects? Who knows. We can say firmly that the competition is intense. All in all, both brands are very successful.