Out of the 21,000 different crypto projects that exist today, many have a lot in common. Some are built on the same blockchains, some share a consensus mechanism, and some offer similar features. So what’s the story about Ethereum and Ethereum Classic?
Initially, there was only Ethereum. A group called DAO used Ethereum to create a venture capital fund. But there was a weakness in the fund’s code that was soon exploited to steal millions of dollars in ETH. And to solve the problem, Vitalik Buterin, Ethereum’s founder, decided to create a hard fork to undo the hack and return funds to investors.
But this approach violated the main rule of the smart contract — “code is law” — which caused discontent among a group of developers. Part of them chose to go with the unchanged version and called it Ethereum Classic. But what are the differences between the two projects? Let’s dig into an ETH vs ETC comparison to find out.
What Is Ethereum Classic (ETC)?
Ethereum Classic is an open-source blockchain platform based on the Proof-of-Work consensus algorithm for the deployment and use of smart contacts. It has similar characteristics to Ethereum and implements similar updates to the project.
The project cannot boast of the same developed applications and assets ecosystem as Ethereum, but in spite of this, ETC still receives a huge flow of investment. Companies like AntPool and Grayscale Investments support Ethereum Classic, which ensures the rapid development of the project.
What Is Ethereum (ETH)?
Ethereum is a blockchain for decentralized applications. Most popular DeFi and NFT projects run on the Ethereum network. ETH is also the second most capitalized token and the world’s first altcoin.
One of the most notable features of the Ethereum network is the use of smart contracts. It is an algorithm that allows you to conduct transactions without the participation of a third party. It allows business transactions to be conducted on the blockchain. Smart contracts have no limitations and can be used anywhere: in sales, gambling, banking, etc.
Moreover, Ethereum allows users to issue their own cryptocurrency based on its ERC-20 standard. That is why the blockchain gained popularity in the NFR niche.
The project has recently moved from Proof-of-Work to Proof-of-Stake, which signified a new era in the development of this crypto.
What Makes Ethereum and Ethereum Classic Different?
Ethereum and Ethereum Classic, at first glance, are quite similar, but they have different development trajectories because of the different ideologies of the projects.
Ethereum is constantly evolving, preparing for global upgrades, creating a huge ecosystem, and trying to be as open as possible with users. Ethereum Classic, in its turn, is developing more slowly, without making any special changes to the system, but at the same time, the project follows the main blockchain principle “code=law.”
Basically, Ethereum is a reformer that is ready to bring new ideas to the world, and Ethereum Classic is a conservative that wants to preserve traditional blockchain values.
Comparison of Ethereum and Ethereum Classic
Ethereum Classic vs Ethereum: Conclusion
The two projects do share some history. On the one hand, they have the same blockchain base; but on the other hand, the vector of their development goes in opposite directions.
What does the future hold for these projects? Ethereum has huge plans and will definitely not move from its top spot in the coming decades. As for Ethereum Classic, the token has a lot of fans, but due to the outdated system, the project has acquired serious security gaps.
So which coin should you invest in? The situation resembles the eternal struggle of ETC vs BTC. There are risks for both sides, but Ethereum in this situation, looks more promising.
