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Ethereum and Ethereum Classic are two different blockchains, each with their own unique characteristics. Although they share a common history, there are some key differences between the two networks that you should be aware of before investing in either one. In this article, we will take a closer look at how Ethereum differs from Ethereum Classic and what these blockchains have in common.
The history of the original Ethereum blockchain
The Ethereum blockchain has been around for a number of years.
Ethereum was first described in a white paper by Vitalik Buterin in late 2013. He suggested that the Ethereum blockchain network could be used to build “decentralized autonomous organizations” (DAOs), which he defined as “a new form of organization that exists on the Internet and has no physical presence.” He published his invention in the Bitcoin community, posted his suggestions on forums and shared them via email, but without much success for the time being. Vitalik Buterin’s goal was to create a free transit system for assets through the blockchain.
In early 2014, he had assembled a team of programmers who started developing the Ethereum software. The first implementation was completed in July 2015 and Ethereum was launched on July 30, 2015 with 72 million coins mined.
Around the same time, the Ethereum Foundation (EF), a non-profit organization, was founded to support the development and promotion of Ethereum.
Emergence of Ethereum and Ethereum Classic
2016 was the year the original Ethereum split into Ethereum (ETH) and Ethereum Classic (ETC). This happened as a result of a hard fork that occurred after the DAO hack.
It was a massive hack of the network that resulted in about $50 million worth of Ethereum coins being stolen. Anyone who owned Ethereum at the time was affected as the crypto funds were stored at a single address. The situation was chaotic: analysts stated that the system was so flawed that only basic technical knowledge was required to hack it; The Ethereum community was mad, the public was angry, and everyone wanted justice.
A few days later, Buterin and his team made a decision: In order for these coins to be recovered, new code had to be created on a revised blockchain with its own network. Ethereum evolved – the record of the hack was erased and those who lost their crypto got it back, but on a new blockchain. The other half of the team decided to keep the original chain containing the DAO hack. And that’s how ETC and ETH came into being.
This is how the project was saved… and it worked!
Their logos definitely show similarities
Ethereum ETH became a fresh start, with global plans to transform itself into the world’s first and best platform to build dApps free from fraud, censorship and downtime. Today it is the most successful smart contract blockchain with the second largest market capitalization (after Bitcoin).
Ethereum Classic emerged from the same blockchain. It is often portrayed as the “true form of Ethereum,” an unmanipulated, unmodified Ethereum blockchain. More of a conservative manifesto. ETC supporters believe code is the law. Meanwhile, the crypto community views the Ethereum Classic blockchain as secondary and insecure. In some areas, ETC is even considered a cryptocurrency dinosaur, having fallen behind in terms of software and smart contract development capabilities.
Similarities between ETH and ETC
Despite what many people may think, ETC and ETH bear a lot more similarities than it seems. Even with the hard fork split, certain principles between coin and coin are retained. These are reduced to:
- Coin Logos: They were created by the same institution, so the profiles of these coins are almost identical.
- Smart Contracts: Both ETC and ETH are built as blockchains that work with Ethereum smart contracts.
- Mining: According to experts, the size of the blocks, the rewards for creating them, and the time invested in mining them are almost identical.
- Decentralization: Both Ethereum and Ethereum Classic are created as decentralized organizations and cannot be controlled by a single party.
Ethereum Classic vs Ethereum: What’s the Difference?
Ethereum and Ethereum Classic have some distinct differences after their split. Among them are the following:
- Market Price: Ethereum’s price is much higher than ETC, as is its market cap.
- Coin Supply: Ethereum supply is entering the deflationary phase. In contrast, Ethereum Classic remains inflationary, which may impact Ethereum ETC investors’ funds.
- Mining: ETC and ETH both started with a Proof-of-Work consensus algorithm, but ETH will upgrade to Proof-of-Stake in September 2022. This upgrade (The Merge) will help make ETH more scalable (the Ethereum network is still plagued). due to scalability problems) and safe.
- Transaction fees: They are significantly higher with Ethereum. As of September 2022, Ethereum charges 0.0026 ETH per transaction versus 0.0001 ETC for Ethereum Classic.
- Success: Ethereum has a large community of investors and supporters, making it a much more commercially successful coin than its namesake.
- Technological Advances: Forking allows Ethereum to offer new alternatives to update its code that the Ethereum Classic network does not include.
Is ETH or ETC better? Which one should you choose to invest in?
When it comes to investing in cryptocurrency, there are several options to choose from. Two of the most popular cryptocurrencies are Ethereum and Ethereum Classic. So what is the better choice for investments?
Neither is better than the other: The difference between Ethereum and Ethereum Classic does not determine the quality of the investment.
However, we can mention some advantages and weaknesses that each of them offers. First off, Ethereum is a hugely successful coin with a large market cap. It is the better known of the two cryptocurrencies, which gives it a degree of notoriety. In addition, Ethereum has a more robust developer community, which means that there are more projects built on top of Ethereum than on Ethereum Classic.
Ethereum Classic, on the other hand, has a large but limited number of coins. Its price is lower, which makes it more accessible to investors. So it might seem like a cheap investment to many. Additionally, Ethereum Classic is not as prone to forks, meaning it is less likely to experience community splits that can erode a cryptocurrency’s value. At the same time, however, it also uses old software code and is therefore vulnerable to attacks. Finally, Ethereum Classic has a longer history than Ethereum and provides investors with more data to gauge its long-term prospects.
In a nutshell, the differences between Ethereum and Ethereum Classic focus on the cryptocurrency supply, its value, profitability, and technological advances. From these aspects, Ethereum seems to be a bit more attractive in some ways. But ultimately, it depends on the investor’s goals and risk appetite. While both Ethereum and Ethereum Classic have potential benefits, they also come with different risks. As always, it is important to do your own research before investing in any cryptocurrency.
What’s next? The future of Ethereum Classic and Ethereum
The future of crypto projects depends on the technology, developer communities, and media coverage.
Ethereum Classic focuses on immutability and security. The ETC development team is working hard to expand it and make it a global payment network.
Ethereum continues to focus on scalability. ETH has been planning to migrate to PoS since 2019 and the process is expected to be completed in 2022. ETH could potentially become the dominant cryptocurrency if it can overcome its scalability issues. It has a strong team of developers working on its technology and its community is passionate about the project.
While both blockchains have their own advantages, it is unclear which will ultimately prevail. However, given the popularity of Ethereum and the increasing demand for blockchain technology, it is likely that both Ethereum Classic and Ethereum will continue to thrive in the future. They could potentially co-exist and complement each other, with ETH Classic becoming known as the more stable and secure blockchain, while Ethereum focuses on being the leading platform for decentralized applications. If you want to learn more about the future performance of the coins, you can visit our Ethereum ETH and Ethereum Classic ETC price prediction pages.
Disclaimer: Please note that the content of this article does not constitute financial or investment advice. The information provided in this article represents the author’s opinion only and should not be construed as trading or investment recommendations. We make no guarantees as to the completeness, reliability or accuracy of this information. The cryptocurrency market suffers from high volatility and occasional random movements. Any investor, trader or regular crypto user should research multiple viewpoints and be familiar with all local regulations before committing to any investment.
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