Ethereum vs Ethereum Classic is both an ethical and ideological battle that started as an attempt to rescue investor’s funds after a high-profile hack attack. While the split is not psychological, it is technical in a way, given that the two platforms have competing visions in the real blockchain ecosystem.
Ethereum (ETH) and Ethereum Classic (ETC) are two different cryptocurrencies even though they share similarities. Here, in this guide, we will focus on how these two platforms are different and similar at the same time. Any novice who is confused about these 2 platforms can use this guide to clear all their misconceptions.
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Ethereum vs Ethereum Classic: What Is Ethereum and Ethereum Classic?
Ethereum
Actually, Ethereum is an open-source, public blockchain platform that offers smart contract functionality and a decentralized application development environment. Here, the network uses Ether and Gas to run their internal networking tasks.
However, Ether (ETH) is the primary token for Ethereum. More so, the network is also suitable for developers as they can develop decentralized applications by using Ethereum as the base of the network. Ethereum now also has a private version called Enterprise Ethereum as well.
On the other hand, Ethereum Classic (ETC) is the very first version of Ethereum. Before the hard fork in 2016, they both had similar ledger records. That’s why you will find similarities in their initial design and features, as they were practically the same network. In 2016, the split of Ethereum Classic and Ethereum divided the whole community. While the majority of people and developers started to follow the new iteration, the size of the Ethereum Classic community became small, and they were unable to improve as much as Ethereum.
Let’s see how Ethereum Classic vs Ethereum pans out in the next segment.
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Ethereum vs Ethereum Classic: The DAO Collapse
Initially, there was only Ethereum, founded in late 2013 as a brainchild of Vitalik Buterin. Cryptocurrency came into being as a way of addressing some of the things that Bitcoin could not do. Ethereum has since grown to become a smart contract platform powered by the native token Ether.
Two years after its formation, the Ethereum team thought of forming a Decentralized Autonomous Organization (DAO) that was to act as a venture capital fund for decentralized crypto projects. The DAO went on to raise $150 million in a crowd token sale.
Shortly afterward, the DAO code was exploited, forming the genesis of the Ethereum vs Ethereum Classic battle. The hack attack resulted in more than $50 million in DAO funds being drained. After the hack, the Ethereum community held a vote, with the majority agreeing that the Ethereum code had to be changed to get the stolen funds back.
The majority agreed that blockchains should be altered if enough people agreed, as the minority disagreed. The standoff resulted in the creation of a new blockchain that is now known as Ethereum.
The minority, instead of making the switch on the creation of the new blockchain, continued to mine the old version of the blockchain resulting in the creation of Ethereum Classic. So, how are they both different? Let’s check out a thorough dissection of Ethereum Classic and Ethereum for that.
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Ethereum vs Ethereum Classic: How Are They Different?
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Protocol
Following the DAO attack, Ethereum switched to a new blockchain that has a vast majority of miners and users. Unlike Ethereum Classic, ETH operates more like a software company that wants to grow. What this means is that the community is open to future changes in the form of forks.
Ethereum Classic, on the other hand, runs on the same protocol that was in operation before the DAO hack incidence. Ethereum’s classic community is made up of 10% of people from the original Ethereum, as they remain loyal to the concept of an immutable ledger.
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Community and Developers
One of the things that make Ethereum stand out has to do with the fact that its community is made up of the original big developers, which explains its exponential growth rate. More than 200 corporations are currently using blockchain technology to run smart contracts backed by ETH.
ETH also has a higher Hashrate than ETC and is continuously updated with the latest changes in the blockchain space. Ethereum smart contracts are also getting regular updates, unlike Ethereum Classic.
Ethereum Classic, on its part, has remained true to the philosophy of Immutability that attracted people to Ethereum in the first place. The fact that its blockchain cannot be altered in any way has seen it receive backing from a few big players in the recent past.
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Updates
A lack of access to new updates made in the ETH chain is one of the reasons why Ethereum Classic has appeared to lag behind when it comes to growth and acceptance among developers. Ethereum comes with a lot of dApps and is very popular in application development. The fact that all the heavyweights of Ethereum have moved to ETH all but explains why ETC has a slightly lower market cap.
The only major con associated with Ethereum has to do with the fact that its blockchain is not immutable like before as some people would have loved.
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Consensus Method
Another crucial point in Ethereum Classic vs Ethereum is the consensus method. Both of them seem to be still using the Proof of Work consensus protocol. However, Ethereum is now trying out Proof of Stake and planning to completely move on from PoW. Now, Ethereum will have a beacon chain where they will run the PoS algorithm. When the mainnet becomes a shard, they will fully move on to proof of stake.
On the other hand, Ethereum Classic has no plans to switch to PoS. It will still continue to use PoW as long as it can. We still don’t know what they have in store in the future.
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Price
One of the prominent differences between Ethereum classic vs Ethereum is the price. In reality, Ethereum or Ethereum classic both have a good market cap. However, due to the popularity of Ethereum, the growth is exceptional. Ethereum is the second popular cryptocurrency after Bitcoin and one of the top blockchain platforms in the market.
On the other hand, Ethereum classic is the 21st popular crypto, and the blockchain platform is not popular among developers that much. So, you see, Ethereum or Ethereum classic both have their market shares, but the difference is huge. That’s why in this comparison of Ethereum classic vs Ethereum, price is a valid point.
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Conclusion
Ethereum appears to have an edge in the Ethereum vs Ethereum Classic tussle, as it has continued to grow from strength to strength from an absolute disaster with the DAO. The fact that Ethereum has all the lead developers means it can only continue to get better when compared to Ethereum Classic.
Still, many people are interested in using Ethereum classic, even though that number is not that high like Ethereum, still due to the loyalty of the community, Ethereum classic is still persisting to this day. If you are also interested in learning more about Ethereum, you should enroll in our Ethereum development course and understand how it works.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!