Ethereum Classic Making a Strong Comeback, Narrowing the Gap with Ethereum!
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In the world of cryptocurrencies, one of the most intriguing splits occurred between Ethereum and Ethereum Classic back in July 2016. This division was a result of a disagreement over a hard fork aimed at recouping funds stolen from The DAO project, a decentralized venture fund built on Ethereum.
Ethereum Classic, the resulting cryptocurrency, stands as an open-source platform for decentralized applications. Unlike Ethereum, it has not seen the same level of Initial Coin Offerings (ICOs) and decentralized application launches.
One of the main differences between Ethereum and Ethereum Classic lies in their philosophies. Ethereum Classic adheres strictly to the principle of immutability, known as "code is law," rejecting any modification of blockchain history. In contrast, Ethereum chose pragmatism by modifying history to correct the DAO theft.
The most apparent distinction between the two blockchains is their blockchain history. Ethereum Classic maintains the original, unaltered history, while Ethereum rewrote its history from the point of the DAO hack via the hard fork.
In terms of monetary policy, Ethereum Classic implemented a capped supply of 210.7 million ETC coins and introduced a Bitcoin-like halving mechanism to limit new issuance, positioning ETC as a "hard asset." Ethereum, on the other hand, has no fixed supply cap and follows different economic rules.
As for the consensus mechanism, Ethereum Classic continues using a proof-of-work (PoW) approach, while Ethereum transitioned from PoW to a proof-of-stake (PoS) consensus with "The Merge" in September 2022, significantly reducing its energy consumption.
When it comes to adoption and upgrades, Ethereum has undergone numerous upgrades focused on scaling, efficiency, and decentralization, including Layer 2 solutions and the shift to staking validators. Ethereum Classic, while maintaining its original principles, is a minority chain with fewer upgrades and adoption.
As of January 2022, approximately 133 million Ethereum Classic tokens have been mined, and the cryptocurrency is traded on major exchanges such as Coinbase, Binance, and Bithumb. The daily trading volume of Ethereum Classic is $288 million.
However, the Ethereum Classic project has faced criticisms. Emercoin's CTO believes that the project lacks the personality of Vitalik Buterin, Ethereum's co-founder, to attract large investments. Additionally, Ethereum is noticeably ahead of Ethereum Classic in terms of PR, marketing, number of partnerships, and implemented projects.
This article was provided for publication by Jamie Martinez and originally written for a specific platform, published on February 2, 2022. It's important to note that the Ethereum Classic blockchain platform split from Ethereum in July 2016, following a hacker attack that resulted in the theft of approximately 3.6 million Ethereum cryptocurrencies in June 2016.
In summary, the split between Ethereum and Ethereum Classic was a significant event in the cryptocurrency world, rooted in disagreement over whether to alter the blockchain to reverse a hacking theft. Ethereum Classic retained the unaltered ledger and a PoW approach with a capped supply, standing for immutability, whereas Ethereum chose to modify history for pragmatic reasons and has evolved technologically with PoS and scaling improvements.
The split between Ethereum and Ethereum Classic prompted discussions revolving around the intersection of finance and technology, as the disagreement centered on the implementation of a hard fork to alter the blockchain and recover stolen funds, demonstrating the intricate relationship between technology and financial decisions.
Furthermore, Ethereum Classic, adhering to a capped supply and Bitcoin-like halving mechanism, has positioned itself as a digital asset of finite quantity, illustrating the integration of traditional finance principles within the realm of cryptocurrency and technology.
