A digital type of money or currency is known as cryptocurrency. You are allowed to trade it on different types of crypto exchanges as well as everywhere. It is becoming famous for using decentralized control in comparison with the centralized digital currency. It has been created on blockchain technology. For executing financial transactions cryptographic functions are used by it. 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.
A Short Review On Ethereum DAO Hack
DAO stands for a decentralized autonomous organization. In 2016 it started a crowdfunding movement for creating an investor-driven project capital firm. This helps the investors to take part in block voting which will be helpful directly for the future of the platform.
After the launch of the Ethereum network within one year a token sale intended was launched by DAO to last 28 days. The DAO earned $ 150 million worth of Ether within only three weeks with more than 11000 investors. But there is a vulnerability in the code of the wallet of DAO smart contracts that led to vicious actors manipulating it before the resolve. 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 different types of ways where they are the possibility of fraud are experienced by the developers of the Ethereum network and supporters due to this highly publicized whipping.
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 for producing 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 to 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 from every block they will add to a ledger. Ether is also received from the transaction fees that they obtain from the smart contracts. People get encouraged for using the platform to create their 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 (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. The people who have the internet can use this. It is decentralized.
The Defi system of 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 to be 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 for using this blockchain. But the internet can make you expose the private info that you want to keep private always.
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 in 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. Immutability is the primary aim of Ethereum classic that is 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 to keep all the information pseudonymous.
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. For getting 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 are 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 thing 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 which 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 to do things more quickly, and more efficiently. They will work in such a way that tells 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.
Ethereum vs Ethereum Classic Faq
Yes, it is completely worth buying an Ethereum classic. According to the predictions of the price of Ethereum classic, it says that the price of Ethereum will be increased unimaginably in the upcoming years. So it will help you to bring your fortune.
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 too between the two blockchains. Ethereum classic was developed after the DAO hack in 2016.
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.
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.