Ethereum vs. Ethereum Classic: Differences You Should Know Before Trading

Have you been reading about cryptocurrencies? Then you are aware of the Ethereum vs. Ethereum Classic debate that is based on ethics and ideologies. There used to be one Ethereum until $50 million was stolen by hackers leading to the formation of two distinct cryptocurrencies. The two cryptocurrencies thus share a great story that is among the most pivotal events in crypto history.

What is ETC?

What is Ethereum Classic? This is one question most crypto lovers want to know. Ethereum Classic (ETC) refers to a decentralized and open-source distributed cryptocurrency platform running smart contracts. Hack of the network in 2016 is what led to its formation. Original Ethereum blockchain was split into two with ETC cryptocurrency remaining as the original.

What is the difference between Ethereum and Ethereum Classic?

Philosophical

The Ethereum vs. Ethereum Classic debate erupted out of a philosophical difference. After the DAO hack, some in the community wanted to keep to the philosophy that blockchain is immutable. However, most of the top developers felt they needed to change the rules and so the "code is law" mantra sprung up.

To this date, ETC sticks to the original Ethereum white paper. Meanwhile, Ethereum is marching on with a planned switch to a proof-of-stake algorithm.

Value

ETH is 15 times more valuable when compared to ETC. The main reason behind this is that most of the big players in the crypto community support ETH. Although the value of ETC might be lower, it still attracts the support of a huge community that believes in its future.

Potential

Most experts hold the view that ETH has the potential to become the world's supercomputer platform. The same isn't said of Ethereum Classic, which has suffered several 51% attacks. Ethereum (ETH) is growing at a fast speed and will soon transition to the staking of ETH while ETC lags its peers and will continue to rely on miners to keep the blockchain secure.

Features

It is another area where the difference between ETH, ETC is visible. Enterprise Ethereum Alliance (EEA), a group that comprises more than 200 firms backs ETH. Enterprise Ethereum Alliance's goal is to use blockchain for smart contracts in over 500 Fortune firms. EEA has prominent companies as its members. Some of the companies include Toyota, Microsoft, ING, and JP Morgan.

It is another area where the difference between ETH, ETC is visible. Enterprise Ethereum Alliance (EEA), a group that comprises more than 200 firms backs ETH. Enterprise Ethereum Alliance's goal is to use blockchain for smart contracts in over 500 Fortune firms. EEA has prominent companies as its members. Some of the companies include Toyota, Microsoft, ING, and JP Morgan.

ETH receives several updates regularly that will ensure it stays updated with its requirements and the market. ETC crypto is not capable of accessing most of the ETH updates making it lag in terms of qualities and features.

DAO and the ETH vs. ETC split

The hack of the Decentralized Autonomous Organization (DAO), an event that saw a hacker steal $50 million worth of ETH, is the root of the eventual split of the Ethereum blockchain.

The DAO was initially a decentralized type of hedge fund or venture capital that was going to fund decentralized applications (dApps) constructed on the Ethereum ecosystem.

How DAO was set up meant it would provide its funders with the power to determine which DAPPs receive funding. Investors will be forced to use Ether as currency to purchase DAO Tokens. DAO tokens did integrate holders to the DAO system giving them some voting power.

But after the hack, the community was divided on how to handle the matter going forward. Some agreed with the proposal to introduce changes to the protocol to make it hard for hackers.

Some developers and network users disagreed. This meant that changes could not be made to the blockchain without creating a contentious issue. The split was acrimonious.

Individuals who never agreed with the fork opted to stick with the original blockchain and named the new blockchain Ethereum Classic. Those who favored changes moved onto the Ethereum (ETH) chain, with the two cryptocurrencies charting their distinct histories since then.

The Future of Ethereum Classic

Ethereum Classic's future seems to be less bright compared to Ethereum. However, increased security since the switch to a new mining algorithm called Etchash has improved the outlook for the cryptocurrency.

ETC developers recently shared graphs showing how the ETC network had seen an influx of new investors, with the cryptocurrency seeing new addresses comparable to popular cryptocurrencies like Dash, Bitcoin Cash, Litecoin, and Cardano.

In terms of its value, it is anticipated that ETC could see significant gains as adoption increases. Part of this will be down to a surge in developer activity as well as its interoperability with Ethereum.

How to exchange to Ethereum Classic (ETC)

Below is a step by step guide on how you can purchase Ethereum Classic on Swapzone

  1. Go to the Swapzone.
  2. Select the currency you would like to exchange and enter the amount in the Deposit list.
  3. Pick ETC in the Receive list.
  4. Choose the deal you would like to proceed with from the list – all the available offers from our exchange partners will be listed there. You can sort the offers out by best rates, best swap time, and the rating of the service provider.
  5. After picking the offer that suits you best, click the Exchange button to proceed.
  6. Enter the recipient’s address on the next screen. Make sure you have entered the information correctly – the exchanged currency will be sent to this address.
  7. Check the information once again. If everything is correct, click the button Proceed the Exchange.
  8. Send the necessary amount of cryptocurrency to the wallet address the service provider has generated. After the deposit is received, our partners will exchange it to ETC.
  9. Exchanged ETC coins will be sent to the address you have entered.

Easy and Fast! Using Swapzone will ensure you get the best exchange rates and a wide variety of coins to choose from.

Conclusion

Bitcoin was the first cryptocurrency to launch in 2009. Since then, a myriad of coins and tokens have been unveiled in the nascent crypto space. If you are new to cryptocurrency, it's advisable to research the different types of crypto before investing. You can learn more about cryptocurrencies on Swapzone, including how to easily swap your newly acquired tokens for one of the popular coins.