Ethereum vs Ethereum Classic: History, Differences & Future

Dive into the history, distinctions of Ethereum and Ethereum Classic, two distinct blockchain networks in the ever-evolving cryptocurrency market. Understand their origins, variations, and potential paths forward.

Who created Ethereum and Ethereum Classic?

Ethereum's development began in late 2013 and was conceived and developed by a brilliant young programmer named Vitalik Buterin. His concept was to create a decentralized platform that could enable the creation of smart contracts and decentralized applications (DApps). Finally, it went live on July 30, 2015.

Ethereum Classic is the result of a contentious hard fork that occurred in July 2016. This split was mainly driven by an intellectual disagreement within the Ethereum community following the DAO (Decentralized Autonomous Organization) fiasco. A faction of the Ethereum community decided to continue with the original blockchain, which split Ethereum Classic.

Why the Need for the Split?

The DAO hack revealed flaws in Ethereum's smart contract code. It resulted in the loss of a significant sum of Ether (ETH) and a heated dispute within the community.

In the case of Ethereum, a contentious decision was made to perform a hard fork to undo the effects of the DAO hack. This entailed generating fresh ETH tokens to compensate the affected investors. However, Ethereum Classic followed the idea of code immutability and did not reverse the hack, resulting in a chain divergence.

Difference Between Ethereum and Ethereum Classic

• Difference 1: Code Immutability

Ethereum (ETH) prioritizes programming flexibility and adaptability to address bugs and improve platform operation. In contrast, Ethereum Classic (ETC) firmly follows the notion of code immutability, which means that once a smart contract is launched, it cannot be changed, even if it contains defects or security risks.

• Difference 2: Security Model

With the Ethereum 2.0 update, Ethereum (ETH) switched to a proof-of-stake (PoS) consensus mechanism, whilst Ethereum Classic (ETC) remains proof-of-work (PoW). As a result, their security and environmental profiles differ, with PoS being regarded as more energy-efficient.

• Difference 3: Cryptocurrency Supply

Ethereum (ETH) established a deflationary monetary policy with Ethereum Improvement Proposal (EIP) 1559, which aims to burn transaction fees. Ethereum Classic (ETC) has not adjusted, and its monetary policy is still inflationary.

• Difference 4: Market Adoption

Ethereum (ETH) has substantially larger market value and wider popularity than Ethereum Classic. The Ethereum network is home to decentralized applications (dApps) for gaming, gambling, socializing, decentralized finance, or DeFi, and non fungible tokens, or NFTs, while Ethereum Classic operates on a smaller scale.

Future of Ethereum Classic

ETC has undergone a series of upgrades to maintain its balance with Ethereum (ETH). These upgrades include Atlantis, Agharta, Phoenix, Magneto, and Mystique. Additionally, whenever a need arises for a general update to Ethereum Virtual Machine (EVM) standards, ETC remains committed to implementing these changes through further upgrades.

Despite the market's appreciation for ETH's worth, ETC constantly ranks among the top 20 cryptocurrencies with significant upside potential. It preserves the ability to affect the expansion of its market capitalization in the future through constant technological advancements and optimizations.

Future of Ethereum

In this year's episode of Bankless Shows, the host Ryan engaged in a discussion with VanEck's institutional analysts, Matthew Sigel and Patrick Bush, focusing on the significant asset, ETH. Employing advanced analytics from VanEck's valuation report, they project that ETH is poised to reach $50,000 by 2030, positioning it as a formidable contender to U.S. Treasury bills (T-bills).

On the technical front, ETH's consensus mechanism has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS). Ether faces scalability challenges as it enters the next phase of Web3's evolution. However, addressing these challenges will be instrumental in shaping Ether's future, particularly once the Trilemma puzzle is better resolved.

Should you invest in Ethereum or Ethereum Classic?

Ethereum Classic may appeal more to people who value blockchain immutability and is decentralized, open source, and offers smart contracts capabilities, but Ethereum may be the favored choice for investors seeking liquidity and greater availability. Ethereum is often easier to buy, sell, and trade than Ethereum Classic, which may not be available on all crypto exchanges. Regardless of your investment strategy, continue with caution and only invest what you can afford to lose.

Is Ether the same as Ethereum

Exactly! "Ether" (ETH) is the native cryptocurrency of the Ethereum blockchain. People frequently use the terms "Ether" and "Ethereum" interchangeably, however, it's vital to note that "Ethereum" refers to the overall blockchain platform, whereas "Ether" is the specific cryptocurrency utilized inside that platform.

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Ethereum and Ethereum Classic have a promising future. Ethereum's sustained supremacy in DeFi and blockchain innovation is encouraging, and Ethereum Classic's dedication to blockchain ideals is commendable.

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