If you’re considering investing in either Ethereum Vs Ethereum Classic, it’s important to understand the key differences between the two. Both platforms have their strengths and weaknesses, so it’s important to know which one will suit your needs best.
This article will provide a comprehensive comparison of Ethereum and Ethereum Classic, so you can make an informed decision about which to invest in.
What is Ethereum (ETH)?
“Ethereum offers open access to digital money and data-friendly 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 Proof of Work (PoW) consensus blockchain technology 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 transfer cash anywhere in the globe at any time. However, Ethereum is more than digital money; 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 data.
What is Ethereum Classic (ETC)?
Ethereum Classic is an open-source blockchain that arose due to a blockchain split in the original Ethereum network by a contentious hard fork, known as The DAO fork, in Jul. 2017. The split created two distinct blockchains, the Ethereum Classic and the new Ethereum. ETC is now Ethereum Classic’s native currency 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 fork is immutability, which is frequently phrased as “code is the law.”
How Are Ethereum Classic And Ethereum Similar?
Developers may use Ethereum classic vs Ethereum to build decentralized apps (dApps) and use Proof of Work consensus system. What exactly are dApps? They are digital programs or apps that operate on the Ethereum blockchain. Decentralized applications are a new trend in the cryptocurrency world that employ a peer-to-peer network of computers to host apps while evicting dominant central institutions (e.g., Google) that want to control everyone and everything.
dApps also use “smart contract” technology, which is available on Ethereum Classic as well as Ethereum. A smart contract is a piece of code that executes a set of instructions when particular terms and circumstances are satisfied. The following sentence is at the core of the smart contract code: “If this occurs, then do this.”
Technically, smart contracts exist on other platforms. Should I buy Ethereum or Ethereum classic? For instance, if you wish to buy a scarf on eBay, your bank’s software will only release the cash if the amount in your bank account exceeds the scarf’s price.
The same happens with Ethereum’s smart contracts, except there is no intermediary (e.g., a bank, governmental body, central authority). Everything is dependent on the blockchain, a peer-to-peer network.
“Smart contracts are meant to enforce the terms of an agreement—whether that agreement is an exchange of digital assets, tokenized rights, proof of identity, or almost anything else,” Ethereum creator Vitalik Buterin noted.
Although Ethereum is the major blockchain for mining and purchasing non-fungible tokens (NFTs), Capital reports that some developers are releasing NFTs on Ethereum Classic.
What’s The Difference Between Ethereum Vs Ethereum Classic: ETC vs ETH?
Although Have several common traits in technology and machenism, but there are still uncommon things. Let’s discover the difference between ethereum and ethereum classic.
Ethereum Classic is an Ethereum fork. Due to the Decentralized Autonomous Organization (DAO) attack, Ethereum Classic sprung from Ethereum. The DAO, which debuted on the Ethereum blockchain in 2016, was an initiative that functioned similarly to a venture capital fund in the crypto world.
The DAO’s primary premise is that investors’ cash may be pooled together with Ethereum-based DAO tokens, and anybody can submit and pitch their ideas to the Ethereum community.
“If a proposal is accepted by a quorum of 20% of all tokens, the DAO automatically sends Ether to the smart contract that embodies the proposal. Any Ether earned by the DAO-funded proposals will be returned to participating investors as a reward, “According to blockchain specialist Osman Gazi Güçlütürk.
Many people thought DAO was a revolutionary idea, and it gathered $150 million in ETH via a crowdfunding campaign. Soon later, a hacker stole $60 million in ETH from DAO. Ouch! Consequently, the ETh community was divided on recovering from the catastrophic cybersecurity calamity.
There were two schools of thinking. One group wanted to undo the transaction on the compromised Ethereum blockchain. The opposing side responded no way – undoing the transaction violates one of blockchain technology’s key principles, which forbids manipulation. Finally, Ethereum shareholders opted to reverse the transaction, and this blockchain is now known as ETH after the hard fork.
A portion of the Ethereum community also wanted to preserve the ETH blockchain as it was, hacker-tainted and all. This split is currently referred to as Ethereum Classic.
Another distinction is, of course, their prices. Ethereum has crossed $4,000 as of this writing, while Ethereum Classic is worth $122. As a result, as Ethereum network’s popularity develops, some are shifting to ETC, which is over 30 times cheaper.
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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 $26, 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 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 advantage of decentralized governance. In other words, the contracts may be executed without the involvement of a third party, such as a lawyer or another monitoring institution.
Ethereum remains the favored blockchain for purchasing, trading, and producing NFTs, edging out Ethereum Classic.
That is not to argue that ETC does not have a future; rather, it seems probable that ETH will remain the more trustworthy and popular blockchain of the two.
Why is Ethereum Classic so cheap?
Ethereum Classic is so inexpensive because it is not as popular as Ethereum. Because Ethereum is a more well-known cryptocurrency, more individuals want to invest in it. Furthermore, Ethereum has a wider ecosystem of apps and is commonly utilized for decentralized finance.
Ethereum and Ethereum Classic are great platforms with their strengths and weaknesses. In the end, it depends on what you’re looking for and what your needs are. Thanks for reading!
Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.