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In this bull run, Ethereum Classic came into our view and drew great attention. The searches such as “What’s the difference between Ethereum and Ethereum Classic” and “Ethereum vs Ethereum Classic” become a major trend those days.
Even sharing a similar name, both crypto assets have a lot of differences, not only in the price. Literally, Ethereum Classic is a fork of Ethereum. But it’s not prepared to be part of Ethereum in the first place. To make it clear, we are going to give an introduction to Ethereum vs Ethereum Classic.
What Is Ethereum?
Ethereum is an open-source public blockchain platform with a smart contract function. Its decentralized virtual machine can handle peer-to-peer contracts through the native token Ether (ETH).
Originated in 2013, the concept of Ethereum was first proposed by Vitalik Buterin. His idea of creating a new programming language to execute tasks and allow developers to build applications on the blockchain did not get approval in the Bitcoin community. Thus he soon established Ethereum in 2014.
What Is Ethereum Classic?
Ethereum Classic is an open-source and blockchain-based distributed computing platform. It provides a decentralized virtual machine with Turing completeness. This machine can execute scripts using a network of virtual machine nodes around the world. Ethereum Classic also issues a token called “ETC” that can circulate among users.
Why and how was it born?
In 2016, the Ethereum team deployed a new project named DAO, aiming to raise Ether by crowdfunding. On June 17, 2016, The DAO was attacked by hackers. The hacker stole over 3 million of Ether, causing huge damage to the Ethereum project. Then the community finally decided to launch a hard fork to reduce the loss.
In July, the same year, the community successfully completed the hard fork at the block height of 1920000. The new one is Ethereum today and the original one is Ethereum Classic.
Differences: Ethereum vs Ethereum Classic
With a basic understanding of the two projects, we are going to analyze the differences and relationships between them. Investors can thus better manage their portfolios and determine which one is their preference.
In Price and Market Cap
To determine whether an asset is worth investing in, a necessary step is to review its price history. According to Santiment, both ETH, ETC were moving in the same way in these years – flat from 2017 to 2020 but had a wavelike rise in 2018, then made a great coup in 2021.
Distinctly, however, ETH shows enormous potential as it went higher than $2,000 and topped $4,000 in this bull. And ETC once surpassed $170 then went back to the price level of $40. Below is the difference in market cap and price between Ethereum Classic and Ethereum.
As of this writing, the market capitalization of ETH is about $240 billion, at the price of $2,057, while ETC is about $5 billion, at $45. Far underestimated, ETC is one of the most undervalued digital currencies in the world.
Experts and some investors believe that ETH would reach $4,000 again by the end of 2021 and ETC would be up to $80.
Primarily, Ethereum has been worked out a new way and developed itself to meet the blockchain demand. And Ethereum Classic is following the same technology that started from the original Ethereum.
The former can modify blockchain records and contracts, that is, it can be tampered with. Whereas, the latter has a tamper-proof that prevents blockchain records and contracts modification.
In addition, Ethereum is gradually switching from PoW (Proof of Work) to PoS (Proof of Stake) while Ethereum Classic is still insisting on the decentralized PoW.
In Community Operation
Ethereum is mainly under the operation of the Ethereum Foundation with community participation, especially in decision making. Differently, the blockchain operation of Ethereum Classic is under the leadership of three collaborative teams and makes decisions with the participation and feedback of the community.
Separated from the original team, the standard Ethereum nowadays has certainly brought most supporters and members to establish a new group. The ETC users have reduced greatly. Though they all enjoy a large user base compared with other altcoins, users of ETC are obviously less than that of ETH.
Relationship: Ethereum Classic vs Ethereum
As mentioned above, Ethereum Classic is the hard fork of Ethereum, moving along the original concept of Ethereum. Thus they also basically share the same technological method where some applications can perform on both networks.
Speaking of which, it’s necessary to mention the project ecosystem. Ethereum Classic has released a token named wETC. wETC is a token issued and anchored to ETC on Ethereum, also known as the “cross-chain asset”, which can be validated on Ethereum. The purpose of issuing this token is to increase the circulation of ETC tokens and enrich the ecological applications of the Ethereum Classic.
Users who hold ETC tokens can lock their assets through smart contracts on the ETC blockchain, and receive the corresponding wETC tokens from the Ethereum blockchain, then participate in the Ethereum project with wETC.
Conclusion: Which Is a Better Investment?
There is a commonly long-held view that in the comparison of Ethereum vs Ethereum Classic, ETC is a purer decentralized platform and is more widely adopted than ETH.
But some investors believe that ETH is better as it has the backup of most investors and the core developers like Vitalik. As a new project born from the incident of the original Ethereum, ETH also is a milestone victory for the blockchain community to unite and actively respond to hacker attacks. Without that hard fork, Ethereum might not have achieved what it is today.
Investors can see a bright future from its second-ranked market cap and the growing user base. They expect Ethereum to surpass Bitcoin to become the First Cryptocurrency. At the same time, ETC also performed quite well in 2021. The upcoming Magneto hard fork on July 24 includes a series of EIPs that optimize Gas and trading, which is likely to bring new heat to ETC.
At present, the competition and comparison of Ethereum Classic vs Ethereum will not end for the time being. It is difficult to fundamentally say which project is better or easier to make money. The crypto market is changing constantly and rapidly, and new coins are born. Investors should judge whether they are valuable based on the project fundamentals and market performance.