Learn about Ethereum Vs Ethereum Classic. Although Bitcoin was the first cryptocurrency, numerous others have since emerged with new features, benefits, and use cases. Ripple and Litecoin, for example, are even quicker and have lower costs. At the same time, the Ethereum network is a blockchain platform focused on smart contracts that can be used to construct numerous decentralized applications, generally known as Dapps.
But did you realize that Ethereum was once known as Ethereum Classic? Due to a dispute in the crypto community on how to handle a hack, the two blockchains eventually separated, and the Ethereum fork resulted in Ethereum (ETH) and Ethereum Classic (ETC).
The two extraordinarily similar yet unique varieties of Ethereum were formed from the same code, but today they have nothing in common regarding community support and development environment. One is at the heart of the latest DeFi movement, while the other is frequently 51% assault. For all of these reasons and more, one is a far superior investment to the other.
Read this article comparing the two cryptocurrencies to determine if Ethereum or Ethereum Classic is worth investing in and which is the better investment for you.
Ethereum vs Ethereum Classic: What is the Difference?
If you’re similar to me, you’re probably wondering what the difference between Ethereum and Ethereum Classic is. In this essay, we’ll look at both and compare and contrast their similarities and differences.
The primary distinction between Ethereum Classic (ETC) and Ethereum (ETH) is that ETC is a speculative digital asset with a fixed supply, whereas ETH is a non-speculative digital asset. On the other hand, ETH is the more popular and extensively traded variant with no set supply. Both are the outcome of a hard fork in 2016 after Ethereum Classic was hacked.
Let’s look at the fundamental distinction between Ethereum and Ethereum Classic.
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What is the difference between Ethereum and Ethereum Classic?
One of Ethereum’s key distinctions is that it intends to transition from proof of work to a new mechanism known as proof of stake. However, Ethereum Classic aims to preserve conventional mining on its own blockchain once Ethereum switches to PoS.
In addition, like ETH, additional ETC is added to the circulating supply as an incentive for miners, with a maximum supply of 210,700,000 coins, although ETH has no set limit.
The Ethereum blockchain was first built as a single blockchain in 2015; however, in June of 2016, the blockchain was hacked, resulting in the theft of $60 million in cryptocurrency. As a result, a hard fork was undertaken to protect the network, which is how the new Ethereum originated, resulting in two distinct versions.
What is Ethereum Classic (ETC)?
Ethereum Classic is an accessible blockchain that arose due to a blockchain split in the original Ethereum network. The split created two distinct blockchains, Ethereum Classic and the new Ethereum. ETC is now Ethereum Classic’s native cryptocurrency and is utilized to fuel network transactions and smart contracts.
In addition to protecting the network, the hard fork resulted in the restitution of all stolen monies to their rightful owners. The Ethereum Classic network has been upgraded continuously since the split. The core goal of Ethereum Classic is immutability, which is frequently phrased as “code is law.”
What is Ethereum (ETH)?
“Ethereum offers open access to online money and info services for everyone – regardless of background or location,” according to Ethereum.org. The technology powers the cryptocurrency ether (ETH) and dozens of apps available today.”
Ethereum is a technology utilised for various purposes such as digital money, worldwide payments, and apps. It is also decentralized and accessible to everyone with access to the internet.
Ethereum’s DeFi system operates around the clock, allowing you to transmit, receive, borrow, earn interest, and send cash anywhere in the globe at any time. However, Ethereum is more than digital currency; as an NFT, it can represent whatever you possess.
You may also use Ethereum without disclosing your personal information; you only need a wallet. In contrast to the internet we know and love today, we must relinquish control over our personal data.
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Does Ethereum Classic (ETC) follow Ethereum (ETH)?
Ethereum Classic (ETC) does not have the same price movement as Ethereum (ETH). ETC is now trading at $38, whereas ETH is trading at $2,800. One of the primary reasons for the pricing disparity is that ETC has a fixed supply, whereas ETH does not.
Does Ethereum Classic (ETC) have a future?
ETC’s primary aim at the moment is to promote the principle that code is the law. Simply put, code is law implies that no one has the authority to censor code execution on the ETC blockchain.
Ethereum Classic continues to support smart contracts and provides the benefit of decentralized governance. In other words, the contracts can be executed without the involvement of a third party, such as a lawyer or another monitoring institution.
At the end of the day, Ethereum remains the favoured blockchain for purchasing, trading, and producing NFTs, edging out Ethereum Classic.
That is not to argue that ETC does not have a future; instead, it seems probable that ETH will remain the two’s more trustworthy and popular blockchains.
What Makes Ethereum and Ethereum Classic Different?
Ethereum has a framework that enables previous transactions to be changed and updated. However, Ethereum Classic adheres to the original Ethereum system’s immutability, which means that users cannot change transactions in the blockchain’s history.
For mining, Ethereum Classic employs a proof-of-work algorithm. The method is similar to that used by Bitcoin. Miners must validate transactions on the blockchain to get Ether rewards.
The Ethereum system has been converted to a proof-of-stake model. People who validate transactions give their stakes to the mining process in exchange for the opportunity to add a new block to the chain, resulting in a reward.
Ethereum may be created with as many tokens as needed, but there is a 4.5 per cent annual growth restriction. The lifetime of the Ethereum Classic is restricted to 230 million coins.
As of September 2021, one Ethereum token is worth $3,400. It has a market valuation of about $400 billion and is the market’s second-largest cryptocurrency.
With a market worth of $7 billion and a token price of $55 as of September 2021, Ethereum Classic is substantially smaller.
Ethereum is open to many future revisions. However, Ethereum Classic has opted to rigorously follow Ethereum’s initial principles.
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What Makes Ethereum and Ethereum Classic Similar?
Both Ethereum Classic and Ethereum are intended to be decentralized networks that are not controlled by a single entity. They run their blockchain on many computers, known as nodes.
Smart contracts are used in both Ethereum versions. These contracts oblige individuals to satisfy specified requirements for platform operation at specific times, assuring the platform’s safety and security.
Although activities on Ethereum Classic cannot be modified as they can on Ethereum, both blockchains continue to operate as pseudonymous systems. The transaction’s public keys will remain available, but the person’s name and other identifying information will not display on the setup.
Ethereum Classic (ETC) does have a future, but it is not as bright as Ethereum (ETH). ETC’s primary aim at the moment is to promote the principle that code is the law. However, ETH remains the favored blockchain for purchasing, trading, and producing NFTs. What makes Ethereum and Ethereum Classic different is that ETC adheres to the original Ethereum system’s immutability. At the same time, ETH has a framework that enables previous transactions to be changed and updated.
Additionally, while Ethereum Classic and Ethereum are intended to be decentralized networks, Ethereum is open to many future revisions. Finally, smart contracts are used in both Ethereum versions, but activities on Ethereum Classic cannot be modified as they can on Ethereum. Ultimately, ETH is the more popular and trustworthy blockchain of the two.