The Ethereum vs Ethereum Classic rivalry began with the Ethereum hard fork in 2016. Following a $55 million hack on The DAO, an Ethereum network-based application, the Ethereum community reached a crossroads.
87% wanted to hard fork the cryptocurrency to return lost funds; (the DAO Scandal did not loose money) the remaining 10% thought this contradicted the immutability of the blockchain.
Ethereum represents the new, higher value cryptocurrency while Ethereum Classic remains the “classic” version of Ethereum that existed pre-DAO hack.
Ethereum accounted for 87% of the Ethereum community at the time of the Ethereum hard fork. This means that Ethereum Classic was only 10% of Ethereum investors.
Large corporations use the Ethereum blockchain. The Enterprise Ethereum Alliance assists companies when it comes to applying Ethereum’s blockchain technology. Mastercard, BP, Microsoft, and JPMorgan Chase have experimented with Ethereum-based applications.
Ethereum functions more like software, whereas Ethereum Classic resembles a cryptocurrency for trade. ETH is largely used to pay transaction fees and, more broadly, keep the Ethereum network up and running. And because so many large companies exist on the Ethereum blockchain, Ethereum’s value is tied to the value of those companies using the blockchain. By comparison, Ethereum Classic has value based entirely on supply and demand—like other money, cryptocurrency or otherwise.
Ethereum and Ethereum Classic have different hash rates. A hash rate is a speed at which a network can complete a transaction. It depends on computational power. The higher a network’s hash rate, the faster it can create new blocks.
Ethereum price is way higher. Today, ETH and ETC cost $229.70 and $11.21, respectively. Their market caps are $23.50 billion and $1.2 billion.
Ethereum and Ethereum Classic similarities:
the blockchains of Ethereum vs Ethereum Classic are not all that distinct. But see for yourself:
Ethereum and Ethereum Classic are open source. Anyone, anywhere can download Ethereum as a software, edit it and redistribute it as they see fit.
Creating a block takes the same amount of time. It takes around 15 seconds to create an Ethereum block on either blockchain. By comparison, it takes 10 minutes to create a Bitcoin block.
Transaction fees depend on the same factors. All Ethereum fees depend on the computational difficulty of the transaction, the amount of bandwidth it uses and the amount of storage it needs. This is all calculated in gas, a unit the exists only in the Ethereum system.
They use the same consensus mechanism. Ethereum and Ethereum Classic use a form of Proof-of-Work called Ethash.
Today, ETH has a higher hash rate, price and market cap than ETC. This is because most of the Ethereum mining community switched to ETH. Additionally, major corporations are building applications on the Ethereum blockchain, which increases the value of ETH. However, these currencies have similarly structured blockchains. Today, they have the same block completion time, open source technology.
A distinction between ETH and ETC remains: the Ethereum blockchain has forked several times since 2016 and could fork again soon. Ethereum is rumored to upgrade its code with “Constantium” in fall 2018. In other words, the contrast between Ethereum vs Ethereum Classic could soon become starker. As smart contracts become legally binding, both Ethereum blockchains could benefit.
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