Ethereum vs Ethereum Classic: Are they the same?
Ethereum (ETH) and Ethereum Classic (ETC) look very similar and share the same name. While both offer decentralization and smart contracts, they differ in value, mining process, and limit.
With the Ethereum merge around the corner, it’s important to understand the difference between ETH and ETC.
In 2016, the Ethereum blockchain was hacked, and $60 million of crypto was stolen. TheDao, a decentralized autonomous organization(DAO), was hacked because of vulnerabilities in code.
Because of the hack, it was decided that the original blockchain would be split in two. A hard fork was done, resulting in the new Ethereum and Ethereum Classic.
A few developers, miners, and other participants believed TheDao should suffer the consequences. It was also rumored the hackers were bribing many people to support this.
Ethereum Classic is the pre-forked version for people who didn’t want a fork. ETC is the cryptocurrency for the Ethereum Classic blockchain.
TheDao got back most of its funds after the hard fork. However, the hacker didn’t lose out on everything. The stolen tokens still remained on the Ethereum Classic blockchain as ETC.
One of the main problems of Ethereum Classic is its scalability limitation. The network can handle around 15 transactions per second, much less than other traditional payment networks.
Security is still a big issue that prevents any mass adoption of ETC.
Ethereum is one of the most popular blockchains today. It is the second most valuable cryptocurrency.
It has changed the game completely. New smart contracts have brought out dApps, NFTs, DeFi, gaming, and more.
All these dApps are run using Ether, the cryptocurrency of the Ethereum blockchain.
Developers can earn Ether from transaction fees on smart contracts.
Ethereum has no limit on tokens, but its growth is limited to 4.5 percent a year.
Differences between Ethereum and Ethereum Classic
Ethereum and Ethereum Classic are very similar but have a few differences. The main difference is the consensus mechanism. Ethereum Classic uses proof-of-work. Ethereum is moving to proof-of-stake.
While Ethereum has no tokens limit, Ethereum Classic is limited to a total supply of 230 million.
Ethereum Classic’s primary focus is immutability, where code is the law.
The Future of Ethereum Classic
Ethereum Classic also has smart contracts, which means it can have dApps and other things. But we can’t forget the hack and other security concerns.
But in the end, mass adoption matters. That is why Ethereum has come out on top and will remain there.
Investors also don’t have confidence in ETC anymore.
I believe ETC has no future other than a store of value.