Ethereum vs Ethereum Classic
Which one is better That’s why we wrote the subject of Ethereum vs Ethereum Classic. If you wish, let’s start.
Ethereum is a system first introduced at the North American Bitcoin Conference by Ethereum founder Vitalik Buterin. Although it is generally seen as a sub-coin, Ethereum is essentially an innovative system that aims to develop blockchain technology and use it in another areas more.
Ethereum for short is a Crypto Operating System that takes the Ether (ETH) cryptocurrency as its power source. The aim is to enable users to create new software on the blockchain system to which Bitcoin is connected. Thanks to Ethereum for that freedom that provides to users, it allows the issuance of many sub-coins.
The purpose of the Ethereum system is to prevent the storage of information such as personal data by third parties and their use for different purposes. Today, almost all transactions we make on the internet (shopping, banking transactions, our use of social media, our internet history, etc.) are recorded in data banks as data. Which purpose that this informations will be used is a complete unknown.
With the Ethereum system, these transactions are stored on many different devices in a completely dispersed and anonymous manner. By this way, access to this information becomes impossible and turns the whole internet into a decentralized platform.
Ethereum vs Ethereum Classic
Ethereum Classic is known as a security-oriented, non-censorship, public and decentralized Blockchain platform where applications can be run. Ethereum Classic (ETC) can be defined as Ethereum (ETH) without hard fork.
How Was Ethereum Classic Born From Ethereum?
To explain how Ethereum Classic was born, we need to talk about the DAO attack. DAO (decentralized self-running organization) means a collective decision-making mechanism that can work decentralized and with a voting system, without the need for any paperwork. DAO’s initially collect funds through smart contracts and distribute tokens to participants. When the fund collection ends, the DAO starts to work, token holders can vote on decisions regarding the organization, and they have a say in the spending plan of the money collected in the DAO. So DAO’s are run only by the community.
What caused the DAO?
The DAO, which caused the separation of ETH and Ethereum Classic, was a decentralized application similar to Airbnb. The ICO of this app has grown at a pace that even its founder did not expect, and raised $ 150 million from 11,000 participants. At the time, some developers stated that if there was a flaw in the DAO code and that if any attack occurs, it could result in disaster.
Despite this, the ICO owner ignored the warnings, arguing that there was no danger. After the 28-day ICO, the anonymous hacker who found the vulnerability began withdrawing Etheriums from the DAO and placed these Etheriums into a similar DAO. The code change vote could not be made in time to save them because the DAO participants were outnumbered.
The value of the project tokens has suddenly dropped from $ 20 to $ 13. Since ether tokens stolen by the hacker are kept in the twin DAO, it was not possible to transfer the tokens to another account for 28 days. Also, because DAO’s are public, anyone could see these tokens. Therefore, the hacker could not withdraw the Ether he stole.
Ethereum Foundation has decided to implement a hard fork to recover stolen etheriums. Some of the Ethereum community stated that this decision would not be in line with the underlying thought of Ethereum. Because the hard fork decision meant that, according to those who opposed the foundation, a section was ignored and the foundation decisions were brought to the forefront. The Ethereum Classic developers teamed up to create a truly decentralized platform that could not be censored.
Ethereum vs Ethereum Classic: Differences
Ethereum Classic is known as ETC, while Ethereum, the new and forked model of the blockchain, is known as ETH. ETH and ETC are different cryptocurrencies and have separate prices and market volume.
lthough blockchain networks are theoretically decentralized, the Ethereum Blockchain is managed by a central authority without directly affecting its decentralized character. It is managed by the Ethereum Foundation. On the other hand, a dispersed community trying to promote the characteristics of openness and immutability works together to protect the Ethereum Classic blockchain. There is a management difference between Ethereum and Ethereum Classic.
Purpose of Ethereum Classic and purpose of Ethereum:
Ethereum is known to be the blockchain network of choice for a large number of businesses because it offers unparalleled quality tools and possibilities such as smart contracts to realize the commercial benefits of the blockchain. Therefore, in terms of its functionality, it believes that it is better for ETH to function only as a blockchain that powers transactions within the blockchain.
On the other hand, Ethereum Classic is mainly known as an encrypted tool for business transactions. Ethereum, on the other hand, does not have such a claim and it is not claimed that it was issued for security.
ETH is much more expensive than ETC. Currently, ETH at press time is 3,494.30 USD and ETC is 106.33 USD. It seems that among cryptocurrencies, Ethereum has gained a wide place for itself, attracts attention and is in a position to be among the common payment systems. In terms of market volume and price, this critical difference between ETH and ETC enables investors to make their choices in favor of ETH.
Ethereum vs Ethereum Classic: Result
Both cryptocurrencies are chosen with their own pros and cons. With good analysis and examination, you can use your investment from both sides. If you liked our Ethereum vs Ethereum Classic article, you can also check out our other articles.