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After the first ever cryptocurrency, Bitcoin, was released in 2009, many cryptocurrencies followed suit. Ethereum is the second largest cryptocurrency by market capitalization and is also the second most popular. If you are new or familiar with the crypto world, you might have encountered the term Ethereum Classic. In this article, we’ll be discussing the differences between Ethereum and Ethereum Classic.
What is Ethereum (ETH)?
According to Ethereum.org, Ethereum is a technology for building apps and organizations, holding assets, transacting, and communicating without being controlled by a central authority. There is no need to hand over all your personal details to use Ethereum – you keep control of your data and what is being shared. Ethereum has its cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network.
Ethereum, founded by Vitalik Buterin in 2015, is a digital currency that allows anyone to create secure digital technologies. Participants can use the token to pay for work done on the blockchain and use it in the blockchain network.
The DeFi system of Ethereum is always available, so you can send funds, receive funds, borrow money, earn interest, and earn interest around the clock.
What is Ethereum Classic (ETC)?
Ethereum Classic was founded in 2016 due to a hack of a smart contract operating on the Ethereum blockchain, The DAO. ETC is an open-source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts.
The split led to separate blockchains, Ethereum Classic and the brand new Ethereum. ETC is Ethereum Classic’s native currency used to power transactions and smart contracts on its network.
The Ethereum Classic software is not compatible with Ethereum updates, including hard forks, at this time.
Differences Between Ethereum and Ethereum Classic
1. Mining Process:
ETC uses a proof-of-work process for mining. This has to do with miners verifying transactions on the blockchain to receive Ether rewards.
ETH on the other hand has plans to move from proof of work (PoW) to a new system called proof of stake (PoS)
2. Supply Limit:
Ethereum does not have any supply limit and can produce as many tokens as necessary, though there’s a limit of 4.5% of growth every year.
While Ethereum Classic only has a supply limit of 230 million tokens in its lifespan.
Ethereum has a value of $1,703 per token as of August 2022. As the second-largest cryptocurrency in the market, it features a market cap of $207 Billion.
Ethereum Classic is quite smaller, with a token price of $38 and a market cap of $5.17 Billion of August 2022.
Ethereum vs Ethereum Classic: Which Should I Invest In?
Choosing which of the two to invest in has to do with a lot of factors. From the earlier mentioned profiles of the two altcoins and their differences stated.
Asides from those, another thing you should take into consideration is the problematic history of ETC. ETC is directly opposed to ETH and is considered an attack on it. Additionally, it confuses newbies in the crypto space and gets in the way of adoption of the altcoin. It also has been attacked successfully 51%, quite a number of times.
A 51% attack happens when a large miner gains more than 51% control over the network’s hash rate, then uses it to double-spend and steal coins. ETC has been 51% attacked quite a number of times, making it an extremely risky investment.
Each asset has its own viability as a long-term investment. There are thousands of decentralized applications and tokens on Ethereum, while Ethereum Classic is regularly attacked and may never be used again.
Ethereum is the most popular altcoin and is widely traded on crypto exchange platforms. If you are looking for a suitable platform to sell Ethereum in Nigeria, check out Breet, an OTC crypto trading platform in Africa.