A digital type of money or currency is known as cryptocurrency. You are allowed to trade it on different types of crypto exchanges everywhere. It is becoming famous for using decentralized control in comparison with the centralized digital currency. It has been created using blockchain technology. For executing financial transactions, cryptographic functions are used. Bitcoin is supposed to be the first digital currency that was introduced as open-source software in 2008. A lot of cryptocurrencies have been created after Bitcoin.
In this article, we are going to discuss the key factors between Ethereum vs Ethereum Classic. But before knowing the differences between them, you have to know about the Ethereum DAO hack.
Table of Contents
A Short Review of the Ethereum DAO Hack
DAO stands for decentralized autonomous organization. In 2016, it started a crowdfunding movement to create an investor-driven project capital firm. It helps the investors take part in block voting, which will be helpful for the future of the platform.
After the launch of the Ethereum network within one year, a token sale was launched by DAO for 28 days. The DAO earned $150 million worth of Ether within only three weeks with more than 11,000 investors. However, there is a vulnerability in the code of the wallet of DAO smart contracts that led to vicious actors manipulating it before the resolution. As a result, more than 60 million tokens of Ether vanished from the pool, which brought an extreme shock to the whole blockchain community. The negative sides of decentralization and the different types of ways in which there is a possibility of fraud are experienced by the developers of the Ethereum network and their supporters due to this highly publicized whipping.
A Short Note On Ethereum (ETH)
As per the reports of Etgereum.org, Ethereum provides open access to digital money and data-friendly services for everyone without considering their location or background. It is nothing but a community-built technology behind the cryptocurrency Ethereum, or ETH, and a lot of applications that you can use in present times.
A technology that can be used for many things, such as digital currency, global payments, and applications, is known as Ethereum. People who have the internet can use this. It is decentralized.
The Defi system for Ethereum is available 24×7. It enables you to send, receive, borrow, earn interest, and send funds anywhere in the world at any time of the day. You should not think of Ethereum as only a digital currency. It is also capable of representing anything you possess in the form of an NFT.
By using Ethereum, you do not need to expose any of your private details. You just need a wallet to use this blockchain. But the internet can make you expose the private info that you want to keep private always.
The Work Process Of Ethereum Or ETH
A popular cryptocurrency that supports smart contracts and decentralized apps is known as Ethereum. The Ethereum programming language can be used by a developer to produce decentralized apps so that they can be used in many sectors, such as financial services, gaming, NFTs, and so on. Smart contracts help to run these applications. It signifies that as soon as the particular conditions work, the programs can be operated.
Ether is a token that is produced on the Ethereum blockchain. Ether will help people run decentralized apps. The complexity of the process determines the amount of Ether that is required for a smart contract. Ethers will be acquired by the developers for every block they add to a ledger. Ether is also received from the transaction fees that they obtain from the smart contracts. People are encouraged to use the platform to create their own decentralized apps as there is a reward system.
Ethereum has not set up any restrictions on the number of tokens you can run in your entire life. But the growth is restricted to 4.5 percent every year.
A Short Note On Ethereum Classic (ETC)
Ethereum Classic is an open-source platform blockchain. It is the outcome of a blockchain split. It is the consequence of a hack on the original Ethereum network. The split introduces two different blockchains, Ethereum Classic and Ethereum. The trading symbol of Ethereum Classic is ETC, used for power transactions and smart contracts on the network.
The network was made secure. Not only this the Hard Fork helped to bring back all the looted funds to the original owners. From then on a repetitive upgrade has been made in the Ethereum Classic network. The primary aim of Ethereum classic is immutability, mostly known as ‘code is law’.
The Work Process Of Ethereum Classic Or ETC
An offshoot of Ethereum that is created as a response to changes in the original Ethereum blockchain is known as the Ethereum classic. The main focus of the Ethereum Classic is on the primary facets of Ethereum. Still, now, the Ethereum Classic is not agreeable with any Ethereum update like hard forks. It is identified with its ticker symbol. also, It operates under smart contacts. It creates Ether under the ETC token name. Also, It works in the field where users are unable to modify transactions on the history of the blockchain.
The design of ETC gives a clear picture that various types of trades made on the blockchain can be tracked by people. It ensures that all the information is pseudonymous.
Ethereum vs. Ethereum Classic Comparative Table
|The Basis for Comparison
|It was founded in late 2013. Later in January 2014, the creator of Ethereum announced the launch at a conference.
|It came into the scene after the DAO got hacked, and $50 million was stolen by the hackers. It was around May 2016.
|It is now run on a more evolved technology.
|It follows the same old blockchain technology.
|It has an uncapped total supply with a fixed supply per year.
|It has changed this, reducing the block reward by 20% at the 5 millionth block number and 20% every 5 millionths.
|Pre & Post Era
|Before the hard fork, Ethereum existed, but it has become more powerful after the hard fork.
|It was born after a hard fork. A small group of people believed that the same blockchain technology would work.
The Difference Between Ethereum And Ethereum Classic
The tussle between Ethereum classic vs. Ethereum can be explained in a way that Ethereum classic is superior to Ethereum. There are a lot of differences between each other. The differences are as follows:
There is a unique feature in Ethereum. It is a platform in which prior transactions can be modified and revised. On the other hand, Ethereum Classic runs on the original Ethereum system that features immutability. Immutability is a process that signifies that the users are not able to modify transactions in the history of the blockchain.
While you will compare Ethereum classic mining vs Ethereum you will find that a proof of work process for mining is used by Ethereum classic. This process is quite similar to bitcoin. To get Ethereum rewards, it concerns miners verifying transactions on the blockchain.
On the other hand, the present Ethereum system uses a proof of stake process. The users will be able to contribute their stakes to the mining process for valid transactions. This will give them opportunities to add a new block to the chain. In this way, they will be able to create a reward.
Ethereum Classic vs. Ethereum price
While considering Ethereum classic vs. Ethereum price you will find that the value of each token in Ethereum as per the reports of July 23 2022 is $1,56. It is the second-largest cryptocurrency in the market. A market cap of $180 billion is featured by Ethereum.
Whereas, the Ethereum classic is smaller than Ethereum. It holds a market cap of $3 billion only. The value of each token in Ethereum Classic as per the reports of July 23 2022 is $26.
Ethereum is capable of producing as many as tokens required. A limit of 4.5% growth every year is set in Ethereum. On the other hand, there is a limit of 230 million tokens in Ethereum Classic for its entire lifespan.
Ethereum allows making different changes in the future that are possible. But Ethereum Classic has strictly determined that it will stick to the original rules of Ethereum.
The Possible Similarities Between Ethereum And Ethereum Classic
Though Ethereum Classic and Ethereum differ from one another, there are a lot of similarities between the two. The similarities between them are as follows:
Ethereum as well as Ethereum classic is designed as a decentralized platform that can not be operated by an individual party. For regulating their blockchain they use several computers or offshoots.
Both Ethereum and Ethereum Classic regulate with the help of smart contracts. People have to face different types of particular terms for regulation at specific times in these smart contracts. Both platforms are safe as well as secure.
Use of pen names
In Ethereum, transactions can be altered but Ethereum Classic does not allow altered transactions. But the two blockchains can be regulated with the pen name setups. In this transaction, the public keys will remain open but the name of the person and the other details that may help to identify him will not be visible on the setup. The particular information stays confidential with the help of the design.
Is There Any Future Of Ethereum Classic
In recent times the primary aim of Ethereum Classic is to work in support of the code of law which signifies that no one is allowed to edit the enactment of code on the blockchain known as Ethereum Classic. ETC still offers to regulate smart contracts and the advantages of decentralized administration. Without the involvement of a third party like a lawyer or an overseeing entity, the contracts can be implemented.
While we are thinking about Ethereum Classic vs. Ethereum which one is better we may conclude that Ethereum surpasses Ethereum Classic as a preferable blockchain for buying, selling, and creating NFTs.
But we can not say that there is no future in Ethereum classic. But Ethereum is supposed to be the most reliable and well-known blockchain of the two.
The Definition Of A Smart Contract
An agreement between the two parties that is written in code is known as a smart contract. The terms of the agreement will be implemented by the blockchain automatically, while the conditions of the two parties will be the same. We know that blockchains are immutable, which means nobody is allowed to change or modify the records. You will get several opportunities for particular businesses that will help you do things more quickly and efficiently. They will work in such a way that there is no requirement for third-party involvement.
The History of ETC
The history of the Ethereum Classic is quite entangled. The history of ETC is mentioned below in short:
- DAO was introduced by the developers of Ethereum to fund the future development of decentralized applications.
- DAO has tokens that can be combined with Ethereum tokens and in this way, they help to implement contracts by using proof of work.
- The fork created the new blockchain known as Ethereum and the old blockchain is known as Ethereum Classic.
To Sum Up
Ethereum vs. Ethereum Classic is no doubt ideological. Ethereum Classic is determined to protect the core code of the original Ethereum blockchain. Indeed Ethereum Classic is an ethical investment. Hope you have got a clear idea about Ethereum vs. Ethereum classic. If you want to invest in these blockchains you just need to go through this article very well. It will help you to consider the best blockchain for you. So read this article and go ahead.
Is it worth buying an Ethereum Classic?
Yes, it is completely worth buying an Ethereum classic. According to the predictions of the price of Ethereum Classic, it is said that the price of Ethereum will increase unimaginably in the upcoming years. So it will help you bring your fortune.
Is Ethereum Classic similar to Ethereum?
Ethereum Classic was originally known as Ethereum. But there are a lot of differences between the two. On the other hand, there are a lot of similarities between the two blockchains. Ethereum Classic was developed after the DAO hack in 2016.
What is the reason for making Ethereum Classic so popular over Ethereum?
ETC is an unpredictable digital asset with a fixed supply. This is the main difference between the two blockchains, ETC and ETH. On the other hand, ETH is a more popular and widely accepted version that is traded widely with no fixed supply.