Ethereum Classic vs. Ethereum: Which One is Better?

Ethereum and Ethereum Classic are two cryptocurrencies that share many similarities, but they have a few critical differences that set them apart. Both are based on blockchain technology but have different approaches to how their blockchains function.

One of the most significant differences between the two is their approach to decentralization. ETC is considered to be more decentralized than ETH.

In this post, we’ll take a closer look at Ethereum Classic vs. Ethereum and see which one is better.

What is Ethereum Classic (ETC)?

Ethereum Classic (ETC) is a cryptocurrency that was created due to a hard fork in the Ethereum network in 2016. The fork happened because of a disagreement within the Ethereum community about responding to a high-profile hack of a popular Ethereum-based project called the DAO.

Some community members believe that the hack was the result of a flaw in the smart contract code and that the best course of action was to reverse the transaction that was made during the hack. However, others believe that changing the blockchain this way goes against the principles of decentralization that underpin blockchain technology.

As a result, the Ethereum network was split into two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC). The latter is essentially the original Ethereum blockchain, with a few key differences in how it operates compared to ETH.

How Does ETC Work?

Ethereum Classic (ETC) works similarly to other blockchain-based cryptocurrencies. It’s a decentralized, distributed ledger that records transactions on a network of computers. The transactions are verified by a network of nodes on the blockchain rather than by a central authority.

ETC also has smart contract capabilities, which allow developers to build decentralized applications (dApps) on top of the blockchain platform. However, its smart contracts are not as advanced as Ethereum’s. We mentioned Ethereum Classic was created as a result of a hard fork, so the two platforms have evolved differently since then.

ETC’s smart contracts are not Turing-complete, and they’re not as widely used as ETH’s. Nonetheless, its smart contracts are still powerful and you can use them for a variety of applications.

What is Ethereum (ETH)

Ethereum (ETH) is a cryptocurrency created in 2016 by Vitalik Buterin. It’s one of the world’s largest and most well-known cryptocurrencies, with a market capitalization that ranks second only to Bitcoin.

ETH is based on blockchain technology. However, Ethereum isn’t just a cryptocurrency—it’s also a platform for building decentralized applications, thanks to smart contracts. Smart contracts help by self-executing contracts with the terms of the agreement between buyer and seller being directly written into code. These contracts are transparent and secure, and they can be programmed to execute automatically when certain conditions are met.

One of the key features of Ethereum is its smart contract capabilities. ETH’s smart contracts are Turing-complete, which means they can perform any action that can be performed by a computer.

Another reason why Ethereum is so popular is that it’s open-source, meaning anyone can contribute to the platform’s development. This has led to a large and active community of developers who are constantly improving the platform and building new applications on top of it.

Ethereum has also been used to create new financial instruments, such as stablecoins, which are cryptocurrencies connected to the value of a stable asset like the U.S. dollar. This makes it possible to create decentralized exchanges that allow users to trade cryptocurrencies without relying on a centralized intermediary.

Overall, Ethereum is a powerful platform for building decentralized apps, such as decentralized finance applications (DeFI) and supply chain management systems, to name a few.

Another feature that sets Ethereum apart from other cryptocurrencies is its approach to decentralization. While some members of the Ethereum community advocate for a more centralized approach, others believe that a truly decentralized platform should have no central authority. This led to the creation of Ethereum Classic (ETC), which is essentially the original Ethereum blockchain with a more conservative approach to decentralization.

How Does ETH Work?

Ethereum (ETH) is a platform that uses blockchain technology to allow developers to create decentralized applications (dApps) using smart contracts. What makes it unique is its programming language, Solidity, which enables developers to create customized smart contracts for specific use cases. The contracts can range from simple transactions to complex financial instruments.

Ethereum’s blockchain enables the creation and management of other cryptocurrencies and tokens, which led to the rise of Initial Coin Offerings (ICOs), a form of crowdfunding for new blockchain projects.

What Are the Differences Between ETC vs. ETH

Here are some of the major differences between Ethereum Classic (ETC) and Ethereum (ETH):

• Decentralization. Many consider ETC to be more decentralized than ETH. In contrast, ETH has a more centralized approach, with developers having the ability to make changes to the blockchain, which some argue is a threat to the platform’s decentralization.
• Security. ETC has a more conservative approach to security than ETH. It has a smaller attack surface, making it less vulnerable to attacks. ETH, on the other hand, has a broader attack surface, making it more susceptible to cyber attacks.
• Smart contracts. ETH is known for its smart contract capabilities, which allow developers to build decentralized applications on top of the blockchain platform. Its smart contracts are Turing-complete, while ETC doesn’t have advanced smart contract capabilities like ETH.

Future of Ethereum Classic (ETC)

The future of any cryptocurrency is uncertain, and that doesn’t exclude ETC. Here are some developments we can expect:

• Adoption and growth. ETC may continue to gain adoption and grow its user base, which could further increase the value of the cryptocurrency and attract more investors.
• Regulatory changes. Changes in regulations and policies related to cryptocurrencies could impact the future of ETC, and the entire crypto industry.
• Competition. ETC may face increasing competition from other blockchain platforms, which could impact its market share and value.

It’s worth mentioning that ETC has already established itself as a viable option for those looking for a decentralized, transparent, and secure blockchain-based cryptocurrency. The future of ETC will depend on various factors, and it’s difficult to predict what will happen in the years to come.

There’s been a debate on the internet for a while on whether Ethereum Classic will remain bullish in the next couple of years and even surpass Ethereum. The price dropped significantly in 2022, but investors remain optimistic about this crypto.

There’s still a lot of confusion between ETC and ETH, even though they’ve become completely separate over the years. This can be a reason for the two cryptocurrencies to stay connected to each other on the market for several years in advance.

However, if ETC continues to innovate and adapt to changes in the industry, it may have a promising future as a separate entity if the bullish predictions come true.

Key Takeaways

In conclusion, ETC has smart contract capabilities, but they’re less advanced than Ethereum’s. However, ETC’s smart contracts are still powerful and useful, thanks to which the platform can have a promising future if it continues to innovate and adapt to changes.

Ethereum Classic is a well-known, decentralized, blockchain-based cryptocurrency that offers many security benefits to its users. Its approach to decentralization, proof-of-work consensus, and smart contract capabilities make it a great option for those looking for a reliable and trustworthy cryptocurrency.

ETC vs. ETH FAQ

• Why is Ethereum Classic so cheap?

  The low price of Ethereum Classic compared to other cryptocurrencies can be attributed to several factors—increasing competition, a lack of adoption, and perception. However, the price of ETC is subject to fluctuations and can be influenced by many factors. Technological advancements or increasing adoption could impact its value in the future.

• Is ETC better than ETH?

  The choice between Ethereum Classic and Ethereum depends on individual preferences and needs. ETC is more decentralized and has a more conservative approach to security, while ETH has more advanced smart contract capabilities.

• Is ETC worth investing in?

  ETC is subject to market fluctuations, and its price can fluctuate depending on various factors. Therefore, it’s important to stay informed about any changes in the market and make investment decisions based on individual goals.