While Bitcoin was the original cryptocurrency ever created, others have since emerged that offer additional features, benefits, and uses. For example, Ripple and Litecoin are even faster and have lower fees. At the same time, the Ethereum network is a blockchain platform with a primary focus on smart contracts. This platform can be used to develop a variety of decentralized applications, also known as dapps.
However, did you know that Ethereum was first developed under the name Ethereum Classic? After a disagreement in the cryptocurrency community over how to respond to a hack, the two blockchains eventually split and the Ethereum fork gave birth to two new cryptocurrencies: Ethereum (ETH) and Ethereum Classic (ETC).
Read this guide that compares Ethereum vs. Ethereum Classic to find out which of the two cryptocurrencies is the better investment for you and whether it is worth investing in Ethereum or Ethereum Classic.
What is Ethereum and Ethereum Classic?
The Ethereum Virtual Machine (EVM) is effectively a giant decentralized supercomputer that developers can leverage to create smart contracts to run dapps or decentralized applications. Because these dapps can be written to work any way you want, this has led to the birth of a huge business known as Decentralized Finance (DeFi).
Ethereum blockchain technology can be used to launch new coins for other projects. During the crypto hype bubble of 2017, Ethereum was the platform of choice for launching Initial Coin Offerings, commonly known as ICOs. Initial coin offerings are new crowdfunded ERC-20 tokens that investors looking for the next Bitcoin or Ethereum bought before anyone else. It contributed to Ethereum’s explosion and growth to its all-time high of $4,811 during the peak of the 2021 bull market.
Today, Ethereum’s price is struggling around $1,733 after the crypto winter since early 2022. DeFi has the ability to replace traditional finance with uncensorable credit and credit, but NFTs have attracted celebrities from many walks of life, including athletes, entertainers, and other types of well-known figures. These influencers are attracting a large number of consumers to the crypto sector, and most of what they are using today is powered by Ethereum. Using Ethereum requires ETH for gas costs, which contributes to the price increase of ETH.
Ethereum has emerged as the clear winner in this Ethereum vs. Ethereum Classic debate. For example, Wall Street has now started paying attention after witnessing the widespread use of Ethereum. Jim Cramer, for example, believes Ether will outperform Bitcoin for the reasons outlined above. But before any of these more favorable events happened for the leading altcoin, an Ethereum fork was needed as an issue with a decentralized autonomous organization called “DAO” and a related hack had cost consumers nearly millions of ETH. The fork caused the Ethereum blockchain to split into two channels and tokens: ETC and ETH.
Ethereum’s initial blockchain was named “Classic”, while the newly forked Ethereum, reached by consensus, took the place of Ethereum as it was previously known. Still, some individuals in the community refused to leave the Ethereum Classic blockchain, and it remains alive to this day, albeit with a fraction of the support and attention.
Ethereum vs. Ethereum Classic Split: How did the fork happen?
When Vitalik Buterin, the founder of Ethereum, proposed the fork, two different Ethereum blockchains were created. The first blockchain was renamed Ethereum Classic while the upgraded version of Ethereum was further developed. Unlike the ideologically motivated Bitcoin and Bitcoin Cash forks, the Ethereum fork was necessary to avoid a catastrophe that would have resulted in a total collapse of the Ethereum market.
In the cryptocurrency market, Ethereum is represented by the ticker symbol ETH, while Ethereum Classic uses the crypto ticker symbol ETC. Both native cryptocurrencies are called “Ether,” which is the fuel that powers the Ethereum Virtual Machine and network of supercomputers. The Ethereum split occurred in July 2016, coinciding with the Bitcoin halving, and helped propel cryptocurrencies into the global spotlight in 2017.
Main differences between Ethereum and Ethereum Classic
The code behind Ethereum and Ethereum Classic has been split into two distinct paths. But how these two methods have evolved over time has greatly influenced the speculative value of each asset. Due to their close proximity, there are relatively few differences between them, but these differences are significant. Let’s continue the debate between Ethereum and Ethereum Classic while seeing the main differences.
Ethereum vs. Ethereum Classic
concepts and creation
After becoming obsessed with Bitcoin and blockchain technology, young engineer Vitalik Buterin conceived the idea that would later become Ethereum. After concluding that the first cryptocurrency asset had some flaws, he set out to create his very own cryptocurrency platform by taking advantage of the newly available technology. This platform should enable smart contracts, digital agreements structured to function and behave in a specific way.
Encoded smart contracts can take the form of simple agreements, such as those used in selling real estate, or they can take the form of more complex programs that run decentralized markets, decentralized finance applications, and more. For example, the Ethereum-based smart contract Uniswap acts as its own exchange.
Ethereum Classic is capable of doing any task that can be done with Ethereum, although the developer community has basically abandoned it. The DeFi Pulse chart, which shows a total value locked in ETH and not ETC, is a wonderful visual representation of this concept. Due to the lack of support, no DEXs, dApps, NFTs or anything else have been constructed on Ethereum Classic and the coin has faced multiple 51% attacks.
transactions and speed
Transactions and speed are important, especially when having the debate between Ethereum and Ethereum Classic. The speed of transactions on both platforms averages between 12 and 15 per second, and the time it takes for ether to be received is highly variable and proportional to the amount of ETH gas cost paid. The faster the transaction, the greater the effort.
In addition to the fact that Ethereum transactions require ETH to transmit, even ERC 20 tokens generated on Ethereum must require ETH to transmit. This ensures that the asset is always in demand, which will increase as more tokens are developed for the platform. The ETH 2.0 update, which has been rolling out since 2020, will enable more transactions per second on Ethereum. With the ETH 2.0 update, 32 ETH is required to enable staking and the number of ETH in the contracts is growing daily.
delivery and distribution
The overall supply of Ethereum is a contentious issue. Recent claims by several prominent Ethereum developers that they did not know the total amount have been disputed by the Bitcoin community. According to Ethereum Core Engineer Martin Holst Swende, the current ETH total is around 112 million.
According to CoinMarketCap, Ethereum Classic supply is 118,000. The Securities and Exchange Commission (SEC) considers cryptocurrencies to be commodities rather than securities when sufficiently decentralized. Ethereum is one of these cryptocurrencies and promotes the use of cryptocurrencies by organizations.
Use cases and target market
Both cryptocurrencies were created with the intention of achieving the same goals, addressing the same use cases, and targeting the same audience. As a result, Ethereum Classic is often viewed as an “attack” on Ethereum as it competes with Ethereum for a similar market share and customer base.
However, there is no real competition. No DeFi apps or NFTs are built on ETC, and its market cap is on the lower end of all cryptocurrencies. Ethereum is the leading altcoin, second only to Bitcoin among all cryptocurrencies. Ethereum is destined to remain champions while Ethereum Classic will continue to fade into oblivion. Trends change frequently, but not in the case of the Ethereum vs. Ethereum Classic debate.
Ethereum Classic vs Ethereum: The Way Forward
In this discussion of Ethereum vs. Ethereum Classic, Ethereum has emerged as the undeniable winner. Ethereum is currently the most bullish alternative currency on the market because it has almost everything to offer. The vast majority of the rest of the cryptocurrency market is based on Ethereum’s smart contracts, and the vast majority of other tokens require ETH to function, which keeps demand high. Ethereum is fundamental to the DeFi and NFT developments that have exploded in crypto over the past few months. Ethereum is the leading alternative cryptocurrency, second only to Bitcoin in terms of market capitalization.
On the other hand, Ethereum Classic now sits at number 20 on the cryptocurrency market cap list, a position it hardly deserves. The cryptocurrency is more of a financial trap for novice crypto traders who mistake it for Ethereum. ETC remains a high-risk crypto relative to other currencies in the evolving asset class, with 51% of its transactions being attacked.
FAQ
The main difference is the profitability of each asset as a long-term investment. Ethereum Classic is often attacked and may never be used again, while thousands of currencies and decentralized applications (DApps) use Ethereum.
Ethereum Classic may not have a very bright future, but it still will. As long as the community continues to provide the meager amount of support it needs, it will survive.
Ethereum is by far the best investment option. Ethereum is also a superior asset for trading due to its greater natural market volatility due to its widespread usage and trading in the cryptocurrency market. The price of Ethereum Classic hardly fluctuates anymore because nobody is interested in it anymore.
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