Ethereum vs Ethereum Classic: What New Crypto Investors Should Know
Ethereum Classic and Ethereum share a similar goal—to build smart contracts and decentralized apps—but the two chains share many differences. For example: they offer different mining activities, ways to change transactions and limits on coin production.
You may be wondering, so which one suits my interests and needs? To help you differentiate the two projects, we’ve helped you outline everything you need to know about their similarities and differences.
The formation of Ethereum Classic emerged as an offshoot of the original Ethereum blockchain platform that was created in 2015. The current Ethereum chain has made some changes over the years, but it remains a popular choice among cryptocurrency investors. Here’s a look at how these two currencies differ from each other.
Ethererum or Ethereum Classic? Which is the Better?
Ethereum is a popular cryptocurrency that supports smart contracts and decentralized apps. A developer can use the Ethereum programming language to produce dApps for many use cases, including financial services, gaming, NFTs and much more. These applications run on smart contracts, which mean the programs operate when certain conditions work.
People will run these dApps through Ether, a token produced on the Ethereum blockchain. The amount of Ether necessary for a smart contract will vary depending on how complex the process is.
Developers will receive new Ether for every block they add to a ledger and from the transaction fees they collect from smart contracts. This reward system encourages people to use the platform to build their dApps.
Ethereum has no limit to how many tokens can run in its lifetime. But growth is limited to 4.5 percent per year.
Ethereum Classic is an offshoot of Ethereum formed as a response to changes in the original Ethereum blockchain. Ethereum Classic focuses on the original aspects of Ethereum.
As of today, Ethereum Classic is not compatible with any Ethereum update, including hard forks.
Identified by its ticker symbol, ETC, Ethereum Classicoperates under smart contracts and produces Ether under the ETC token name. ETC focuses on a platform where users cannot alter transactions on a blockchain’s history.
The design ensures that people can track different trades made on the blockchain, while ensuring all information is kept pseudonymous.
What Makes Ethereum and Ethereum Classic Different?
Immutability
Ethereum features a platform that allows prior transactions to be altered and adjusted. However, Ethereum Classic uses the original Ethereum system that encouraged immutability, a process where users cannot alter transactions in the blockchain’s history.
Mining Process
Ethereum Classic uses a proof-of-work process for mining. The practice is similar to what Bitcoin uses. It entails miners verifying transactions on the blockchain to receive Ether rewards.
The current Ethereum system has been updated to a proof-of-stake process. The people who validate transactions contribute their stakes to the mining process for the chance to add a new block to the chain, thus producing a reward.
Limit
Ethereum can be produced with as many tokens as necessary, although there’s a limit of 4.5 percent of growth each year. Ethereum Classic is limited to 230 million tokens in its lifespan.
Value
Ethereum has a value of $3,400 per token as of September 2021. As the second-largest cryptocurrency in the market, it features a market cap of nearly $400 billion.
Ethereum Classic is significantly smaller, with a market cap of $7 billion and token price of $55 as of September 2021.
Potential Changes
Ethereum is subject to various possible future changes while Ethereum Classic has decided to strictly adhere to Ethereum’s original rules.
What Makes Ethereum and Ethereum Classic Similar?
Decentralization
Both Ethereum Classic and Ethereum are designed as a decentralized platform that isn’t run by a single party. They use many computers or nodes to operate their blockchain.
Smart Contracts
Both versions of Ethereum operate with smart contracts. These contracts require people to meet specific terms for operation at certain times, ensuring the platform is safe and secure.
Pseudonymous
Although transactions on Ethereum Classic cannot be altered like they can with Ethereum, both blockchains still operate as pseudonymous setups. The public keys on a transaction will stay open, while the person’s name and other identifying details will not appear on the setup. The design ensures specific details remain private.
Side-by-Side Comparison of Ethereum and Ethereum Classic
Take a closer look at the two versions of Ethereum with our side-by-side comparison table.
Feature | Ethereum | Ethereum Classic |
|---|---|---|
Trade Symbol | ETH | ETC |
Formation | 2015 | 2016 |
General Purpose | dApp development and smart contract support | dApp development and smart contract support |
Maximum Available Supply | No limit, but the growth is limited to 4.5 percent per year | 230 million |
Mining Standard | Proof of stake | Proof of work |
Mining Reward | Transaction fees | Transaction fees |