Many crypto users find it hard to differentiate between Ethereum and Ethereum Classic. While both platforms sound similar, there’s a ton of difference between them. There also seems to be a strong debate about the best option between both platforms.
So, for starters, both Ethereum and Ethereum Classic are two different blockchains. And both have different tokens: ETH and ETC. However, they both emerged from a single blockchain. With the recent Ethereum Merge, everyone is looking at investing in Ethereum. But, we advise that you learn the difference between both platforms before investing.
What’s the Difference Between Ethereum and Ethereum Classic?
As mentioned earlier, Ethereum and Ethereum Classic came from the same blockchain. Vitalik Buterin first introduced Ethereum in a whitepaper in 2013. But it wasn’t until 2015 that the blockchain made its formal debut. The split (hard fork) between both blockchains occurred in 2016 and was caused by a hack. Ethereum Classic and Ethereum remained identical until block 1,920,000.
A little backstory: Ethereum was the first blockchain to host a Decentralized Autonomous Organization. So, after the hack, the community had differing opinions on the best line of action. Some wanted changes that would erase the history of the hack and restore what members had lost. Others simply wanted changes to the blockchain. However, a public ledger means such unwanted history cannot be erased.
Congratulations to the Ethereum Team, @VitalikButerin and everyone who worked on the merge to proof of stake last night! This move will reduce worldwide electricity consumption by more than .2%!
— Jared Polis (@jaredpolis) September 15, 2022
The solution to the situation was a hard fork. So, Ethereum fixed some issues and erased the record of the hack. Additionally, users who incurred losses in the hack received their funds on the new blockchain. This way, the community had a win-win situation.
So, the new blockchain without the history of the hack is referred to as Ethereum. While the Ethereum Classic is the blockchain version with the record of the hack and the original code. It is worth noting that the Ethereum Classic is incompatible with the new Ethereum and the recent upgrades on Ethereum are not applicable to the classic version.
Ethereum Vs. Ethereum Classic Mining
Here’s another point of difference between both chains. Ethereum recently moved to a proof-of-stake consensus mechanism where users stake their tokens to the mining process to validate transactions and add new blocks to the chain.
PoW miners can go with ETC. Stakers can go with ETH2. Which is fair to each their own choice. Thanks and congrats @VitalikButerin et alš¾.
May both chains co exist in their own right providing options for stakers and miners. https://t.co/4x008OxaUL
— Ethereum Classic (@eth_classic) September 15, 2022
The Ethereum Classic retains its use of the proof-of-work mechanism that Bitcoin uses. It is an energy-intensive process where miners verify transactions on the blockchain to receive rewards. The Ethereum Classic will not upgrade from the POW system since the community decided to stick to the original plan. Meanwhile, Ethereum is subject to future changes as the community deems fit.
Thank you so much to all of the miners who are flocking to #EthereumClassic in the last few days, and specifically in the last 24 hours, where network hashrate has rocketed from ~60 to ~90 TH/s. š pic.twitter.com/CgcyJhlfbx
— Bob Summerwill (@BobSummerwill) September 15, 2022
Is Ethereum or Ethereum Classic Better?
The decision to invest in Ethereum or Ethereum Classic depends on your personal objectives and long-term portfolio plan. However, a few factors can assist you in determining which option is most likely to be the greatest fit for your needs.
First, Ethereum is second only to Bitcoin in terms of popularity and is one of the most widely used cryptocurrencies.Ā Compared to Ethereum Classic, which has a market worth of aroundĀ $3,8 billion Ethereum has a $160 billion market cap.
In addition, Ethereum is more widely used and popular, which increases its liquidity. It’s safe to say that ETH is simpler to purchase, sell, and exchange than Ethereum Classic. In reality, not all exchanges support ETC. You have to use Wrapped ETC for it to be compatible with the ERC-20 token standard if you want to use ETC within Ethereum.
On the other since, ETH might be a better option for investors looking for a liquid and generally accessible asset. On the flip side, ETC can seem like a preferable option for blockchain idealists who embrace the ledger and believe it should not be messed with. However, we advise that you take time to research your needs before investing in either.
Ethereum VS Ethereum Classic Price
As of this writing, Ethereum traded at $1,309.14 USD with a 24-hour trading volume of $18,604,753,751. Meanwhile, Ethereum Classic traded at USD 27.90 with a 24-hour trading volume of $642,214,269.
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