Since the creation of the first crypto which is Bitcoin, several other cryptos have been introduced since then. The cryptos have additional features, uses, as well as benefits. For instance, Ethereum works on a smart contract-focused blockchain which may help in launching different decentralized applications.
Initially, Ethereum started as Ethereum Classic. However, the two blockchains later split because of a disagreement. The community disagreed on how to handle a hack. Therefore, the Ethereum fork resulted in Ethereum Classic (ETC) and Ethereum (ETH).
Although Ethereum and Ethereum Classic are the same, they are distinctly different. They are similar since they were created from the same code. However, they are dissimilar in terms of developer ecosystem and community support. One is regularly 51% attacked while the other one is DeFi trend center.
Ethereum Classic is the original blockchain. Besides, its native token is ETC. However, Ethereum came about because of the hard fork that took place in 2016. The Ethereum blockchain is currently called Ethereum Classic after the perpetrators withdrew money from The DAO project. It was a huge hack in which the perpetrators withdrew money from a successful Initial Coin Offering (ICO) project.
At this point, the community got divided. One side suggested that the Ethereum blockchain should be reversed in rescuing the affected individuals. On the other hand, the other investors argued that The DAO should not be bailed out. Instead, it should face its consequences.
Ethereum was launched in July 2015 by Vitalik Buterin. His aim was to expand Bitcoin functionality by allowing smart contract development. After the spilt in the creation of what we call Ethereum and Ethereum Classic, other developers joined. Charles Hoskinson, Gavin Wood, Mihai Alisie, Joseph Lubin, and Amir Chetrit joined Vitalik Buterin in coming up with Ethereum.
Ethereum is a platform that currently deploys and creates smart contracts. The contracts are preloaded in a decentralized network after triggered conditions are met. Basically, they are autonomously executed. Also, through Ethereum, anyone can deploy and create self-executing programs. Some of the programs include metaverse, Decentralized finance, and NFTs.
The Similarities of Ethereum and Ethereum Classic
ETH and ETC have some similarities. First, they are designed as a decentralized platform. This means that no single party runs them. Besides, in operating their blockchain, they use varied nodes or computers. Besides, they are similar in terms of transaction speed, smart contract functionality, and privacy protection.
Both ETC and ETH’s average speed is between 12 to 15 transactions per second. The time taken for Ether to be received also depends on the amount of ETH gas fees paid. If the cost is high then it means that the transactions will also be fast. However, after the implementation of ETH 2.0, the number of transactions that Ethereum support per second will increase.
Smart Contract Functionality
The two cryptos automate financial decisions as well as dApps using smart contracts. The functionality further helps in performing actions based on the predefined conditions. Smart contracts can be coded for different agreements including real estate sales. For instance, the Uniswap smart contract acts as an exchange and it is built on the Ethereum blockchain.
The Ethereum Classic and Ethereum have placed emphasis on protecting the users’ privacy. Although the public keys are open to everyone, it is the user who controls the private key. Also, users have the option of using aliases instead of providing their personal information. This strategy helps them to preserve their anonymity as they carry out their transactions.
The Main Differences Between Ethereum and Ethereum Classic
As much as Ethereum and Ethereum Classic are the same in some components, they differ in some ways. For instance, their prices are very different in terms of value. Also, while in the past they both used Proof of Work, Ethereum currently uses Proof of Stake.
Supply and Market Value of Ethereum Vs Ethereum Classic
Currently, the price of Ethereum is $1,429.09. However, the Ethereum Classic is currently trading at $33.29. Besides, the market cap of Ethereum is $175,119,568,202 while that of Ethereum Classic is $4,557,240,933. In terms of circulating supply, Ethereum has 122,419,765 ETH while Ethereum Classic is 136,928,730 ETC.
Consensus Protocol of Ethereum Vs Ethereum Classic
Ethereum Classic uses the Proof of Work Consensus mechanism. The process involves the miners solving challenging mathematical problems. The process uses energy-intensive equipment in validating the blockchain’s transactions. Therefore, as a trader, when you validate and add new blocks, then you get ETC tokens in form of rewards.
On the other hand, as of September 2022, Ethereum shifted from using Proof of Work to Proof of Stake. At PoS, one must stake the Ether coins in being a validator. The staking process ensures that validators do not add dubious transactions to a block.
As compared to Ethereum Classic, Ethereum has a high liquidity and user base. Therefore, it means that ETH is less volatile. Besides, ETH is so popular on the exchanges and this can reduce investment risk. Apart from that, it has Enterprise Ethereum Alliance support. The group has over 200 members as well as top firms such as Microsoft.
Immutability of Ethereum Vs Ethereum Classic
The Ethereum platform allows for the previous transactions to be adjusted or altered. Unfortunately, ETC encourages immutability. This is the process in which users or rather traders cannot change the transactions in the history of blockchain. It encourages immutability as it uses the original Ethereum system.