It’s no secret there are two variations of the Ethereum blockchain, the first one being Ethereum (ETH) and the second one – Ethereum Classic (ETC). Both of these cryptocurrencies share something more than their names and have an interesting story that has to go down as one of the most important events in crypto history.
Before this split, Ethereum was a single cryptocurrency. However, in June 2016 $50 million worth in ETH had been stolen by anonymous hackers. It consequently led to the development of two different camps of Ethereum cryptocurrency. This article will discuss what exactly Ethereum Classic is, how it differs from Ethereum and what to expect.
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (ETH) is the native cryptocurrency of the platform.
In general, both Ethereum and Ethereum Classic allow applications to be built onto it. It is important to know what a smart contract is since it plays a big part in Ethereum architecture. It is a “contractual state” with its own conditions and commands. When the conditions are fulfilled, the contract is programmed to execute itself.
As these smart contracts are automated, both processing transactions and building decentralized applications, or dApps, Ethereum attracts everyone from developers and gamers to individual investors and governments.
Ethereum Classic is a decentralized blockchain-enabled platform that allows any type of customer to come and develop their own dApps on it. Similarly to Ethereum, Ethereum Classic has been developed to provide maximum flexibility as well as adaptability.
In 2014, the co-founders of Ethereum Vitalik Buterin, Gavin Wood, and Jeffrey Wilcke started to work on a bigger level of blockchain to introduce a trustworthy smart contract platform. However, in 2016, after the launch and the pivotal hard fork, Ethereum branched out to a new network holding new consensus rules. Ethereum Classic has not stopped following the original network rules and has been successful in keeping the Ethereum vision to be the same ever since.
The main difference between Ethereum and Ethereum Classic is ideology.
Although having decided to take different paths, Ethereum and Ethereum Classic were born from the same code. Both witnessed many upgrades and alterations and now have a few differences in their ethics and ideologies.
Vitalik Buterin brought the initial concept of Ethereum after exploring the blockchain technology a bit deeper and awing at Bitcoin. Buterin soon saw that the original cryptocurrency asset had a number of flaws and decided to develop an entirely new cryptocurrency.
This cryptocurrency platform was built for the creation and running of smart contracts, or digital agreements. These can be used in a number of spheres such as real estate, insurance, health care or much more complex frameworks that support decentralized exchange, DeFi applications, etc.
Both Ethereum and Ethereum Classic have similar transaction speeds, being capable of processing 12-15 transactions per second. However, it may take you long to receive Ether since it is largely dependent on the ETH gas fees. The higher the fees are, the quicker the transaction will be processed and confirmed. Ethereum is predicted to start supporting a much larger number of transactions within a second, with all the credit going to the ETH 2.0 update.
The total supply of Ethereum is a very hyped-up issue. Numerous Ethereum programmers have stated that they were not familiar with the total supply and were challenged by the Bitcoin community. Later, the core developer Martin Holst Swende claimed that the current total supply was set around 116 million ETH. Ethereum Classic circulating supply, as of now, is approximately 128 million according to CoinMarketCap.
Ethereum and Ethereum Classic are similar in terms of functionality and, therefore, have similar use cases. This is mainly the reason why Ethereum Classic is considered Ethereum’s rival. No wonder, since it is competing for the same market and audience.
However, Ethereum has taken the lead in being the number one altcoin. Trends are bound to change, but it’s still unclear whether that’s the case for Ethereum and Ethereum Classic. Ethereum will probably always remain higher.
The Ethereum split is linked to the DAO or the Decentralized Autonomous Organization. Essentially, the DAO was a venture capital or hedge fund to sponsor all the decentralized apps that were built within the Ethereum ecosystem.
This would enable funders to pitch ideas and decide which decentralized app should be funded first. The investor would have to purchase DAO tokens with Ether. The owned DAO tokens would then give the holders voting power.
The flexibility of such a process and the potential the DAO had to offer had attracted a large gathering of people hopping on to the Ethereum bandwagon. It proved to be a huge success as it raised over $150 million of Ether within only its first month.
The crypto experts have many positive things to say about Ethereum Classic, hoping it has a promising future. No surprise since the coin has gained a lot of attention during 2021 within the cryptocurrency community. It may not overthrow Ethereum but it will most likely keep up with Ethereum’s pace. Especially considering ETC’s climbing the charts in May 2021, when it soared almost 60%.
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