Deloitte Ditch Ethereum for VeChain

Deloitte Ditch Ethereum for VeChain, is it the Beginning of Mass Migration?


A big-four Audit provider, Deloitte, has announced it is changing lanes to join VeChain, a blockchain platform, after three years on Ethereum, the second largest blockchain project.

Deloitte has been a member of the Enterprise Ethereum Alliance (EEA) since mid-2017. EEA was launched to encourage businesses to adopt the use of the Hyperledger project and the Ethereum blockchain.

But After Three Years, What Happened?

Three years into the alliance, instead of cementing its Ethereum usage, Deloitte is migrating to VeChain, a rival blockchain project.

But why the shift after all this time? Well, Ethereum has been plagued by a few setbacks. For example, the platform lacks scalability although Vitalik and his team have been working hard to overcome the scalability block. For example, the platform is being prepped to move from its current Proof of Work consensus mechanism to Proof of Stake and the implementation of sharding.

VeChain, on the other hand, is scalable and has a higher transaction rate than Ethereum.

Deloitte may have been pulled more by the speed of VeChain. On LinkedIn, the director of consulting at Deloitte, Cillian Leonowicz, said:

“We wrote more transactions than Bitcoin over the weekend by migrating our client work from Ethereum to VeChain – we managed to execute 20+ smart contract transactions per second. This is a massive achievement for our EMEA Blockchain Lab.”

Not Only Deloitte

On social media, it was evident the VeChain community was happy. But, as it turns out, more firms are migrating to VeChain.

Similarly, Redditors were ecstatic, expressing their views:

“And before them [Deloitte] it was PWC (PricewaterhouseCoopers), another big 4 firms… Indeed, not only is PWC promoting VeChain but has an active stake in them… Don’t have to imagine it; it’s really happening,”

However, some interpreted  the migration as a boost for the blockchain space noting:

“There are areas where pure decentralization is not only valuable but necessary… There are many roads to where we are heading. Arguing only ETH [Ethereum] or VET [VeChain] can survive is not only silly but short-sighted. What we should be cheering is mainstream adoption.”

In mid-April, the VeChain platform received another significant boost after BMW indicated that it is developing a decentralized application for its digital vehicle passbook to keep track of insurance, mileage, and service records for its range of cars.

Late last week, VeChain surpassed the number of transactions on the Bitcoin platform which was 396K against BTC’s 359K

With more companies migrating to VeChain the demand for VET coins is set to rise since Deloitte, BMW, PWC, among other businesses will need them to finance their platforms. Ethereum will need to do something real fast to curb the looming mass migration.