The world of cryptocurrency is growing rapidly and the Ethereum blockchain is at the forefront of the industry. It’s one of the most popular and well-known blockchains and has recently been attracting a lot of attention for its ability to create smart contracts.
In this post, we’ll compare and contrast Ethereum and Ethereum Classic, including their similarities and differences.
Understanding Ethereum
Since its launch in 2015, Ethereum has quickly become the second most popular cryptocurrency after Bitcoin.
Ethereum is a blockchain-based platform that runs smart contracts: The Ethereum Virtual Machine (EVM) is a decentralized computer that can run scripts over a worldwide network of public nodes.
Ethereum is used to build decentralized applications (dapps). These apps or “Dapps” run on a peer-to-peer network rather than a single central server. This allows for greater security and resilience, as there is no single point of failure.
Ether is the native cryptocurrency of the Ethereum platform. It is listed under the code ETH and traded on cryptocurrency exchanges. It can be moved across accounts and used to reward participant nodes for computed tasks. “Gas,” an internal transaction price system is utilized to reduce spam and distribute network resources.
Ethereum Classic Explained
Ethereum Classic is a continuation of the original Ethereum blockchain – the one that ran before the hard fork. The original Ethereum chain continued to operate while the forked chain became known as Ethereum Classic.
The hard fork was caused by a hack on the DAO, which was a decentralized autonomous organization built on top of the Ethereum blockchain. The DAO was hacked in June 2016, and funds worth $50 million were stolen from it.
The hard fork to create Ethereum Classic happened because the community couldn’t agree on how to deal with the hack. Some people thought that the funds should be returned to the investors who lost them, while others thought that the whole system should be rolled back to before the hack happened.
The platform’s native token, ETC, can be used to pay for services on the network or traded on exchanges.
What is a Smart Contract?
A smart contract is a computer-based electronic system designed to streamline and strengthen legal agreements using digital means. Smart contracts enable trustworthy transactions to be carried out without the need for intermediaries. You can trace these transactions but they can’t be reversed after completion.
Smart contracts were first proposed by Nick Szabo in 1996. He defined a smart contract as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises.”
How Does a Smart Contract Work?
Smart contracts are similar to traditional contracts, but they are written in code and stored on a blockchain. When all parties involved agree to the terms of the contract, the code is executed automatically. This means that there is no need for a third party to enforce the contract.
Benefits of Smart Contracts
The benefits of using smart contracts include increased security and transparency, as well as reduced transaction costs. Smart contracts can be used for a wide range of applications, such as property ownership, supply chain management, and financial services.
Differences Between Ethereum and Ethereum Classic
In 2016, a hard fork occurred in the Ethereum community over a disagreement on how to handle the funds raised in The DAO initial coin offering. This hard fork resulted in the creation of two different cryptocurrencies: Ethereum (ETH) and Ethereum Classic (ETC). Both of these cryptocurrencies are based on blockchain technology, but there are some key differences between them.
Key Differences Between ETH and ETC
- ETH has an uncapped total supply with a fixed supply per year, while the ETC supply is capped at 210.7 million. Ethereum classic’s block reward declines by 20 percent every 5 million blocks.
- Ethereum Classic is not supported by many major exchanges and wallet providers. This means that it can be harder to buy and sell ETC, and there may be less liquidity.
- Ethereum Classic has a smaller developer community than Ethereum, which could mean slower progress on updates and new features.
- ETH has a higher market cap and trading volume than ETC, making it the more dominant blockchain platform.
- Ethereum uses a different mining algorithm called Ethash, which is designed to be ASIC resistant. ETC uses a PoW mining algorithm in which miners get rewarded just like Bitcoin.
- Ethereum has a much faster block time than Ethereum Classic.
Similarities Between ETC and ETH
For starters, both Ethereum and Ethereum Classic use the same blockchain. This means that all transactions that have ever taken place on either network are recorded on a shared public ledger.
Both Ethereum and Ethereum Classic offer a decentralized platform for smart contracts and dapps. This means that developers can build applications on either platform without having to go through a central authority.
Another similarity between Ethereum and Ethereum Classic is their native tokens, ETH and ETC respectively. These tokens can be used to pay transaction fees or used as a form of digital currency. Finally, both networks support smart contracts.
The Future of Ethereum Classic
There is no doubt that Ethereum Classic has had a tough time lately. The blockchain platform, which was born out of a fork in the Ethereum network, has been plagued by 51% attacks that have seen its value plummet and also make it a high-risk cryptocurrency for investors.
A 51% attack refers to an attack on a blockchain—that allows an attacker to control the majority of the network’s mining hash rate or computing power, thereby allowing them to manipulate the ledger for their own financial gain.
While there are no guarantees in the world of cryptocurrencies, Ethereum Classic still appears to be a solid investment. Here’s a look at what the future might hold for Ethereum Classic.
Currently, the Classic Ether (ETC), the native cryptocurrency of the Ethereum Classic platform, is ranked at number 20 on CoinMarketCap with a market capitalization of $4.54 billion. So what is the future of Ethereum Classic?
Well, according to some experts, the future is still bright for Ethereum Classic. Yes, the platform is high-risk due to the 51 percent attacks but its low price makes it an attractive investment for many.
And with big names such as Coinbase and OKEx listing ETC, it seems that confidence in the platform is still strong.
Is Ethereum Classic Considered Better Than Ethereum
Ethereum (ETH) is considered better than Ethereum Classic (ETC) because it is a more technologically evolved version of what Ethereum was supposed to be. It is also more resistant to 51% attacks and other types of malicious activity on the blockchain.
ETH is better than ETC for the following reasons:
- Ethereum is more scalable – Ethereum can handle more transactions than Ethereum classic, making it better suited for larger-scale applications and businesses.
- Ethereum has a stronger developer community – With a greater number of developers working on the platform, there are more opportunities to build robust and reliable applications using Ethereum.
- Ethereum is less volatile – Cryptocurrencies are notoriously volatile, but ether (ETH) has remained relatively stable compared to other major cryptocurrencies like Bitcoin and Litecoin. This makes it a safer investment option for those who are concerned about the potential for price fluctuations in their holdings.
- Security – Ethereum has a significantly higher number of nodes than the Classic version and has been battle-tested against a variety of attacks.
- Finally, Ethereum also has a higher market capitalization than Ethereum Classic, which makes it a more liquid investment.
Conclusion
Ethereum is better known because it’s more popular than Ethereum Classic at this point in time. However, Ethereum Classic still has a lot of potentials.
Ethereum is considered better for investment than Ethereum Classic. This is because Ethereum has a more active development community and a more robust roadmap. Ethereum also has a higher market capitalization and liquidity.
If you want to invest in either type of Ethereum, do your research for more information about the risk involved, their features, and how they compare.
