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Ethereum vs Ethereum Classic: The Battle of Blockchain Platforms

Understanding Ethereum and Ethereum Classic

Blockchain technology has revolutionized the world of money and finance, and no blockchain platform has done more than Ethereum. Ethereum is a decentralized platform that allows for the creation of decentralized applications (dApps) and smart contracts.

It provides a platform for developers to create and launch their own blockchain-powered applications and cryptocurrencies. However, Ethereum Classic is another platform that was born out of a dispute within the Ethereum community.

In this article, we will explore the differences between Ethereum and Ethereum Classic, how they work, and how they compare to each other.

Difference between Ethereum and Ethereum Classic

To understand the differences between Ethereum and Ethereum Classic, we need to go back a few years. In 2016, a hacker found a vulnerability in the DAO (Decentralized Autonomous Organization), which was a group of smart contracts on the Ethereum blockchain.

The hacker exploited the vulnerability and drained over $60 million worth of Ether. To address this issue, the Ethereum community decided to execute a hard fork, which would essentially reverse the hack, and recover the stolen funds.

However, not everyone agreed with this decision. Some members of the community believed that the hard fork was against the principles of decentralization and immutability.

These members continued with the original Ethereum blockchain, which became known as Ethereum Classic. Therefore, the primary difference between Ethereum and Ethereum Classic is that Ethereum is the result of the hard fork, while Ethereum Classic is the original blockchain that continued to operate.

How Ethereum and Ethereum Classic work

Both Ethereum and Ethereum Classic use the same underlying technology, which is blockchain. Blockchain is a decentralized digital ledger that records all transactions in a secure and tamper-proof manner.

However, Ethereum and Ethereum Classic differ in their approach to consensus algorithms. Ethereum currently uses a proof-of-work (PoW) consensus algorithm, but it is in the process of transitioning to a proof-of-stake (PoS) algorithm.

PoW is a energy-intensive process in which miners compete to solve complex mathematical problems to earn new Ether. PoS, on the other hand, requires validators to hold a certain amount of Ether and stake it as collateral to validate transactions.

PoS is less energy-intensive, more secure, and more scalable than PoW. Ethereum Classic, on the other hand, has stuck with the PoW algorithm.

This is because Ethereum Classic is dedicated to preserving the principles of decentralization and immutability. PoW is considered to be more resilient to attacks and censorship as it requires a lot of computation to rewrite a block and add it to the chain.

Both Ethereum and Ethereum Classic also support smart contracts and dApps. Smart contracts are self-executing contracts that contain the terms and conditions of an agreement between two parties.

They are stored on the blockchain and can be executed automatically when certain conditions are met. dApps, on the other hand, are decentralized applications that are powered by smart contracts and run on the blockchain.

ERC-20 token is a standard for creating custom tokens on the Ethereum network. Most of the cryptocurrencies launched via ICO (initial coin offering) have been ERC-20 tokens, which allows them to leverage the Ethereum network for secure and trustless transactions.

Comparing Ethereum and Ethereum Classic

Ethereum vs Ethereum Classic price

Ethereum and Ethereum Classic have different market caps and price points. As of July 2021, Ethereum’s market cap is around $251 billion, with a price of $2,200 per Ether.

Ethereum Classic, on the other hand, has a market cap of $7.9 billion, with a price of $65 per ETC. Therefore, Ethereum is more liquid and readily available than Ethereum Classic.

Investing in Ethereum versus Ethereum Classic

When deciding between investing in Ethereum or Ethereum Classic, it is important to consider your individual goals and portfolio strategy. Ethereum has more popularity and demand than Ethereum Classic, which means it may have a better long-term potential for growth.

However, Ethereum Classic is more focused on preserving the principles of decentralization and immutability, which may appeal to investors who prioritize these values. In conclusion, Ethereum and Ethereum Classic are two different blockchain platforms that have different approaches to consensus algorithms, but they both provide a platform for developers to create smart contracts and dApps.

Ethereum is more popular, more liquid, and easier to access, while Ethereum Classic is focused on preserving the principles of decentralization and immutability. When deciding between investing in Ethereum or Ethereum Classic, it is important to consider your individual goals and portfolio strategy.

Buying and Selling Ethereum and Ethereum Classic

As more people become interested in cryptocurrencies such as Ethereum and Ethereum Classic, buying and selling these digital assets has become easier than ever before. In this section, we will explore some of the options available for purchasing and selling these coins.

Availability of Ethereum and Ethereum Classic on Exchanges

One of the easiest ways to buy Ethereum and Ethereum Classic is through exchanges. Several reputable exchanges, such as Coinbase, Kraken, Gemini, and Binance US, offer these cryptocurrencies to users.

Before buying from an exchange, users should research and compare the fees, security measures, and reputation of each exchange. Coinbase is one of the largest and most popular exchanges in the US.

They offer users a simple and user-friendly platform, making it easy to buy, sell, and store Ethereum and Ethereum Classic. Users can purchase these coins using either a bank transfer or credit card, and Coinbase charges a fee of 1.49% to 3.99% depending on the payment method.

Kraken is another reputable exchange for buying and selling cryptocurrencies. They offer a wide range of payment options, including bank transfers, credit/debit cards, and cryptocurrency deposits.

Kraken charges a fee between 0.16% and 0.26%, depending on the payment method and trading volume. Gemini is a New York-based exchange that offers a user-friendly platform to buy and sell Ethereum and Ethereum Classic.

They support bank transfers, credit/debit cards, and cryptocurrency deposits. Gemini charges a fee between $0.99 and 1.49%, depending on the payment method.

Binance US is a relatively new exchange that offers a wide range of cryptocurrencies, including Ethereum and Ethereum Classic. They support bank transfers, debit/credit cards, and cryptocurrency deposits.

Binance US charges a fee between 0.1% and 0.5%, depending on the payment method and trading volume.

Payment and Selling Options for ETH and ETC

When it comes to payment options, many exchanges offer a range of choices, including fiat currency, credit/debit cards, and cryptocurrency deposits. Most exchanges require users to go through a verification process before buying or selling cryptocurrencies.

After this, users can trade cryptocurrencies with ease. Selling Ethereum and Ethereum Classic is as easy as buying them.

Most exchanges allow users to sell their cryptocurrencies for fiat currency or other cryptocurrencies. Users can also withdraw their funds to their bank account or cryptocurrency wallet.

Future of Ethereum versus Ethereum Classic

The future of Ethereum and Ethereum Classic looks different due to the nature of the differences in their approach to consensus algorithms. Let’s explore what the future holds for both platforms.

Ethereum’s Upgrade to ETH2 and Potential Growth

Ethereum is moving to a proof-of-stake (PoS) consensus algorithm through its upgrade to ETH2. PoS is expected to improve Ethereum’s security, scalability, and energy efficiency.

By implementing this upgrade and shifting from PoW to PoS, Ethereum will eliminate miners and depend on validators to validate transactions. Validators will be required to hold and stake a certain amount of Ether to participate in the network and validate transactions.

Decentralized finance (DeFi) has also become a massive industry built on top of the Ethereum network using smart contracts, such as the ERC-20 token standard. This opens up a whole world of possibilities such as decentralized exchanges, lending protocols, and payment systems.

ETH2 is expected to provide better performance and more scalability, which will further improve the usability and viability of the Ethereum network. Ethereum Classic’s Upgrades and Potential for Interoperability

By sticking with PoW, Ethereum Classic’s longer block times and lower hash rate have made it less attractive than Ethereum for developers and other users.

However, Ethereum Classic is not standing still in terms of development and upgrades. The recent upgrades to the network, such as the Magneto upgrade, have enabled Ethereum Classic to be more compatible with Ethereum network upgrades and have increased its competitiveness.

In addition, the Ethereum Classic community is exploring the potential for interoperability between Ethereum and Ethereum Classic to provide more flexibility to users and developers. By leveraging blockchain technologies, Ethereum Classic aims to improve its relevancy and maintenance in a constantly evolving cryptocurrency landscape.

Conclusion

In conclusion, buying and selling Ethereum and Ethereum Classic has become much more accessible in recent years. Reputable exchanges offer a variety of payment options, making it easy for users to purchase and sell these cryptocurrencies.

Ethereum and Ethereum Classic have different approaches to consensus algorithms, with Ethereum moving to proof-of-stake and Ethereum Classic sticking with proof-of-work. However, both platforms are constantly evolving, with upgrades and development improving their potential for long-term viability and relevance in the cryptocurrency world.

In conclusion, Ethereum and Ethereum Classic are two blockchain platforms that enable developers to create smart contracts and dApps. While they share some similarities, they differ significantly in their approach to consensus algorithms.

Ethereum is transitioning to proof-of-stake and is focused on decentralized finance and interoperability. In contrast, Ethereum Classic is committed to preserving the principles of decentralization and immutability.

Buyers and sellers can easily access these cryptocurrencies through reputable exchanges, offering a variety of payment options.

Understanding Ethereum and Ethereum Classic and their unique features is crucial for anyone interested in investing in cryptocurrencies.

As these platforms continue to evolve and mature, their long-term viability and relevance will depend on their ability to attract developers, users, and investors.

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