Ethereum vs Ethereum Classic: What is the Difference?
On Jun 09, 2022
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Ethereum and Ethereum Classic are two of the most popular Cryptocurrencies in the world. They both have different purposes, but some people still don’t know what the difference between them is. In this article, we will explore the key differences between Ethereum and Ethereum Classic. We will also discuss their future as well. By the end of this article, you should have a clear understanding of which Cryptocurrency is right for you. So let’s get started.
Difference between Ethereum and Ethereum Classic
What is Ethereum Classic (ETC)?
Ethereum Classic (ETC) is a cryptocurrency that was created as a result of a hard fork in the Ethereum blockchain. The fork occurred in July 2017, after a hacker exploited a flaw in a smart contract and stole millions of dollars worth of Ether. The Ethereum community was divided on how to respond to the hack, with some members proposing a hard fork in order to roll back the blockchain and reclaim the stolen funds.
This proposal was ultimately rejected, and those who disagreed with the decision opted to continue using the original Ethereum blockchain, now known as Ethereum Classic.
What is Ethereum (ETH)?
Ethereum is a decentralized platform that runs smart contracts, and applications that run exactly as programmed without any possibility of fraud or third-party interference. In the Ethereum protocol and blockchain, there is a price for each operation. The general ledger records all of these instructions, and they cannot be set aside.
The “program” that determines how each transaction behaves is called a smart contract. Developers can use smart contracts to create decentralized applications. Decentralized exchanges, voting systems, and many other applications have been built on Ethereum.
How Ethereum Classic is Different from Ethereum
Although both blockchains share a common history, they have diverged in terms of their philosophy and vision. Ethereum Classic maintains the original vision of Ethereum as a decentralized platform for smart contracts and apps.
In contrast, Ethereum has undergone a major transformation, shifting its focus to become a platform for decentralized finance (DeFi). As a result, the two blockchains now offer different features and capabilities.
ETH 2.0 Upgrade
One key difference between Ethereum Classic and Ethereum is that Ethereum Classic does not support the ETH 2.0 upgrade. This upgrade would add new features to the Ethereum network, including proof-of-stake (PoS) and sharding.
However, the Ethereum Classic community believes that these changes would centralize power on the network and damage its decentralization. As a result, they have refused to implement the ETH 2.0 upgrade, instead choosing to keep the original ETH 1.0 protocol unchanged.
Approach to Governance
Another difference between the two blockchains is their approach to governance. Ethereum Classic follows a decentralized model in which decisions are made by consensus among users and developers. In contrast, Ethereum has moved to a more centralized model, with key decisions being made by the Ethereum Foundation.
This difference in governance has led to disagreements between the two communities and has resulted in a fork of the Ethereum Classic blockchain.
Basic Points of Difference Between Ethereum and Ethereum Classic
Concepts and Creation
Ethereum Classic is a continuation of the original Ethereum blockchain – the classic version preserving untampered history; free from external manipulation and censorship. ETH has forked into ETH & ETC. ETH (Ethereum Hard Fork) went on to implement new features such as Proof of Stake, Casper ABC, Sharding, and Plasma. ETC (Ethereum Classic) chose to stick with the original vision of Ethereum as a “World Computer” which runs without censoring or interference from a third party.
Both ETH & ETC are public, decentralized platforms driven by code and consensus. They differ however in their monetary policy, choice of clients/software, governance model, and value proposition. The key philosophical differences between the two can be summarized in two statements
“Code is Law” vs “People are Law”. In other words, ETC prioritizes immutability and trustlessness of code above all else, while ETH prioritizes human trust and intervention when deemed absolutely necessary to benefit the ecosystem as a whole.” Creation wise, ETH was created through a pre-mine and ICO whereas ETC was a fair launch with no pre-mine or ICO.
Transactions and Speed
First, transactions on the Ethereum Classic network are not reversible, while transactions on the Ethereum network are. This means that if you send someone ETH on the Ethereum network, you can always cancel the transaction before it is confirmed.
However, once a transaction is made on the Ethereum Classic network, it cannot be reversed. Second, Ethereum Classic has a faster transaction speed than Ethereum. This is because the Ethereum Classic network uses a different algorithm to confirm transactions.
Finally, Ethereum Classic has a lower transaction fee than Ethereum. This is because the number of miners on the Ethereum Classic network is smaller, and they are able to validate transactions more quickly. As a result, transaction fees on the Ethereum Classic network are typically much smaller than those on the Ethereum network.
Supply and Distribution
As any crypto-enthusiast knows, Ethereum and Ethereum Classic are two of the most popular blockchain platforms in the world. Both networks have their own unique features and strengths, but they also differ in a few key ways.
One key difference is in their supply and distribution. Ethereum has a finite supply of 84 million coins, while Ethereum Classic has an infinite supply. This difference is due to the Fork that occurred in 2016.
Another key difference is in their distribution. Ethereum was pre-mined before it launched, meaning that a large portion of the total supply was held by the Ethereum Foundation. In contrast, Ethereum Classic was not pre-mined, and its distribution is more evenly dispersed.
These two factors – supply and distribution – play a big role in shaping the overall price and value of each network. As a result, it’s important to understand the difference between these two factors when considering which blockchain platform to invest in.
Use Cases and Target Market
Like many others, one of the most significant distinctions is in their use cases. ETH is focused on becoming a global platform for decentralized applications (dapps), while ETC aims to provide a more stable and secure blockchain for enterprise use. As a result, ETH has been adopted by a wide range of dapp developers, while ETC has been largely embraced by businesses and organizations.
Another key difference is in their target markets. ETH is designed for general use, while ETC is aimed specifically at businesses and enterprise users. This focus on enterprise users has led to ETC being seen as a more “conservative” network than ETH. Finally, ETH and ETC also differ in their approach to governance. ETH has a more centralized governance model, while ETC operates under a decentralized model.
These governance differences have led to some tension between the two networks, with each side accusing the other of being too centralized or too decentralized. Despite these differences, both ETH and ETC continue to be widely used and respected blockchain networks.
Does Ethereum Classic (ETC) follow Ethereum (ETH)?
While Ethereum and Ethereum Classic share a common history, the two projects have diverged in terms of their approach to governance and development. Ethereum Classic is a decentralized platform that runs smart contracts applications just like Ethereum does.
However, ETC has a different vision for its future than ETH. While ETH has embraced a more centralized approach, with a foundation that controls funds and makes decisions about the direction of the project, ETC has maintained a decentralized philosophy.
This means that ETC is not controlled by any single entity and anyone can contribute to its development. As a result, the two projects have taken different paths, with ETH moving towards greater centralization and ETC remaining true to its roots as a decentralized platform.
Future of Ethereum Classic (ETC)
Ethereum Classic (ETC) is one of the many different cryptocurrencies available on the market, and many believe that it has a bright future. While the price of ETC has fluctuated in recent months, it remains one of the top 10 cryptocurrencies by market capitalization.
Ethereum Classic is unique in that it offers a blockchain platform that is immutable and resistant to forks. This means that ETC could be well-positioned for long-term success, as it provides a level of security that other cryptocurrencies cannot match.
Furthermore, Ethereum Classic has a strong team of developers and a passionate community of supporters. While there is no guarantee that Ethereum Classic will continue to succeed, there are certainly many reasons to believe that it has a promising future.
Goals of Ethereum Classic
The Ethereum Classic vision is to build a blockchain that is censorship resistant, secure, and decentralized. Ethereum Classic aims to provide users with a platform where they can easily create and deploy decentralized applications. To achieve these goals, Ethereum Classic uses a proof-of-work consensus algorithm which makes it difficult for bad actors to tamper with the blockchain.
In addition, Ethereum Classic has a team of experienced developers who are constantly working on improving the platform. Ultimately, the goal of Ethereum Classic is to provide users with a secure and trustless platform where they can build and deploy decentralized applications.
How You Can Buy Ethereum
You can buy Ethereum from a number of sources. The most common way is to purchase it through an exchange. However, this can be difficult for first-time buyers because of the process of setting up an account and transferring funds.
Another option to buy Ethereum is to use an Over-The-Counter (OTC) shop like Coinsfera, which allows you to buy Ethereum in Dubai with cash. This is a good option for those who are new to cryptocurrency or don’t want to go through the hassle of setting up an exchange account.
Finally, you can also mine Ethereum yourself if you have the necessary equipment and expertise. However, this is typically only viable for those with specialized knowledge and access to high-powered hardware. Whichever option you choose, make sure that you do your research before buying Ethereum so that you can get the best possible price.
The Bottom Line
ETH is newer as compared to ETC, and it has a number of advantages over ETC. For one, ETH has a more active development team and is therefore more likely to incorporate new features and improvements. Additionally, ETH has a larger community of users and developers, which gives it a network effect that ETC cannot match.
ETC has also some advantages over ETH. For example, ETC is not burdened by the same scalability issues that plague ETH. Moreover, ETC has a long history and is, therefore, more established than ETH. In the end, predicting the future of cryptocurrencies is always tricky, but it seems likely that ETH will come out ahead of ETC in the long run.