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Ethereum VS Ethereum Classic

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Ethereum VS Ethereum Classic

Ethereum is a well-known blockchain network that has been around for over three years. I this article, we’re gonna learn the pros and cons of ethereum vs ethereum classic. Ethereum was born out of creating a decentralized, censorship-resistant platform for apps and services. Many different individuals support the project, but some people disagree with it.

One group of supporters believes that Ethereum should be saved from this disagreement by hard forking into two separate networks – one called “Ethereum” and “Ethereum Classic.” The other group believes that they should not change the protocol because it would cause confusion in the marketplace and make Ethereum seem more centralized than what it initially set out to do. This blog post will discover both sides of the argument and see why each side believes what they do.

It is imperative to note that the Ethereum protocol was not compromised. While some people might not agree on its effects, it can still be called a success in some ways. Many different companies have launched using the ethereum platform for their services, and they all seem pretty happy with how things are going. The DAO was not hacked, but it was compromised by exploiting a loophole in its smart contract, which prompted the hard fork.

What is Ethereum Classic?

Ethereum Classic is an interesting case because there are two chains that people are referring to when they say Ethereum Classic. One main chain uses the identical blockchain up until block 1920000, and another one goes by the name of “Ethereum Classic,” which is NOT using the old blockchain but instead has started its blockchain from block 0. It is essential to comprehend this distinction because they are two completely different chains.

What is The DAO?

The DAO stands for the Decentralized Autonomous Organization. It started its life in May 2016 when Slock created it. It and quickly became one of the most significant crowdfunding projects around. It gathered more than 12 million dollars in Ether, which made it the second largest crowdfund in history only surpassed by Star Citizen with over 38 million dollars raised.

On 17th June 2016, an unknown user “Devops199” found a vulnerability in the contract that held all of this money, allowing him to drain 3.6 million Ether into another account. This account still exists today and has more than $1 billion worth of Ether stuck inside without any chance of getting access to them until they do something about these funds.

What should they do?

When they drained the money first, many community members immediately jumped into action, trying to find a solution. The developers of Ethereum had two choices available for them

– either change the protocol in some way so it would be possible to return all Ether to its original owners or

do nothing and let this one die with the hacker holding onto all the tokens. Letting it die is not an option because users still invested their money into this project, expecting it to be valid. Doing nothing would also cause problems with how decentralized ethereum truly is if they decided to act independently without any consensus from the rest of the network.

They decided the hard fork solution to be the best one out of all options. It would lead to something that is called a “chain split,” which means that ethereum has two different networks running on two separate chains, but it would also serve its purpose in returning funds to their owners.

This verdict did not sit well with some people who felt like this went against what Ethereum stood for – decentralization. They believed that no matter how much money someone might lose by mistakes or bad decisions, they should never act without consensus from everyone involved. They saw the hard fork as an act of centralization because only the core development team had enough power (in their eyes) to decide on such matters.

  1. What are the differences between Ethereum and Ethereum Classic?

The difference between ethereum and ethereum classic is that ethereum is a forked version of ethereum classic. ethereum still holds the attack within the blockchain, whereas ethereum classic has nothing to do with it.

  1. Why Is This Important To You As A Cryptocurrency Investor?

As a cryptocurrency investor, you have likely heard about Ethereum and its hard fork earlier this year, where ethereum split into ethereum and ethereum classic. This article will go over why this was important to cryptocurrency investors and how ethereum has been performing compared to ethereum classic.

  1. How Will These Two Currencies Impact Your Investment Portfolio?

Due to the difference between these currencies being so large, it can be very beneficial for you as an investor. The price of ethereum (the original ethereum) has increased, whereas ethereum classic has been falling. If you invested in ethereum before it forked, your portfolio would have grown due to ethereum’s success after the fork.

  1. Which Currency Should I Invest In For My Financial Situation?

If your main goal is to see an increase in investment value, then ethereum (original ethereum) would be best for you since its price has continued to rise over time. If you are more interested in holding ethereum classic tokens due to ideological reasons or because you feel like it will be a contender against ethereums market cap, then ethereum classic might be a suitable option for you as well has fallen drastically since the ethereum fork.

  1. Is It Too Late To Buy Into Either These Currencies Or Should I Wait Until Next Year?

Suppose you have been thinking about buying ethereums for a while now. In that case, it might be wise to buy ethereum now because of the ethereum fork and ethereums rise in price even though ethereum classic is also performing very well as an alternative. However, if ethereum does not continue to increase its value or both currencies experience some significant changes over the next year, it would be best to sell them and wait until they stabilize or change dramatically before deciding whether or not to reinvest.

  1. What Are The Pros And Cons Of Each Currency

Pros of ethereum:

  • Can process transactions faster than ethereum classic.
  • Ethereum enables smart contracts and decentralized applications (dapps) to be developed and run without the need for any downtime, fraud, control, or third-party interference.
  • One more advantage of ethereum is that ethereum is more stable than ethereum classic.

Cons of ethereum:

  • It has a possibility of having all coins hacked and destroyed if not implemented correctly.
  • It can be more expensive – ethereum is more scalable, but ethereum classic can process more total transactions with its limited scalability (31,000 per day)
  • Ethereum has highly fluctuating prices which makes it difficult for ethereum to be used as an actual currency.
  • Etherum cannot process transactions fast enough to keep up with demand, so ethereum cannot be used on some computationally heavy apps or exchanges yet.
  • Ethereum does not have the network effect that ethereum classic currently holds, so it might take longer for ethereum to grow its user base.

Pros of ethereum classic:

  • You can use it to see how ethereum will crash by looking at its history.
  • The network is secure because there are many ethereum classic nodes compared to ethereums less decentralized network.
  • It acts as a hedge against changes Ethereum’s team may make in the future

e.g. if Ethereum’s team decides to move ethereum to proof of stake ethereum classic will remain proof of work so ethereum classic can be a more direct competitor with ethereum in the future.

Cons of ethereum classic:

  • Cannot process transactions as fast ethereum.
  • People who bought ethereum before the fork lost their money when it hard forked.
  • Etherum is older and has been tested on multiple occasions, while ethereum classic is new and has not been tested nearly as much or as long as ethereums network.
  • Ethereum was developed by some of the most respected people in the crypto-currency community, while ethereum classic was created by nobodies who had literally no following initially.
  • Ethererum Classic cannot process as many total transactions as ethereum.
  • Etherum classic can process around 25 transactions per second (TPS), ethereum can process about 50 TPS, and ethereum’s network is more scalable than ethererum classic (ethereum classic can only handle 15 TPS).

Ethereum Classic is a cryptocurrency created due to a disagreement with Ethereum’s hard fork bulled through by the Ethereum Foundation, members of the Ethereum community, and several important figures in the crypto realm. This disagreement is regarding whether or not the DAO hack should’ve resulted in a “hard fork” that changed ethereum’s blockchain state from what it was before, thus creating two versions of ethereum, each with their ethereum token that exists on each ethereum version’s blockchain. Ethereum Classic is ethereum as it was before the hard fork and ethereum now is ethereum after the hard fork. This means that ethereum classic and ethereum tokens exist on ethereum classic’s and ethereum’s, respectively.

The result of this disagreement brought about a split in the ethereumphere, caused by those who were against the implementation of a “hard fork” which would change history, recording every transaction as valid (the supporters) and those who supported it to undo transactions for financial gain (the non-supporters).

User Opinion:

Proponents of ethereum believe that ethereum is the original Ethereum network and therefore should not be changed. They believe this because core developers disagree with ethereum changing their codebase; they would like to keep it similar to bitcoin technology.

“If we didn’t do the hard fork, if we didn’t do the change, then the DAO token-holders could sue us for negligence,” Gavin Wood told IBTimes UK in June 2016. “That was a key factor, to make sure that the Ethereum Foundation would not get in any legal trouble.” VB

I think ethereum is the right choice for ethereums when they need to save from splitting into two separate networks – one called ” ethereum ” and one called ” ethereum classic. ” I think ethereum classic should be chosen by investors and users looking for a more immutable blockchain. I think both coins could coexist somehow, and we can wait and see how it plays out over time.

Conclusion:

Very few people believe ethereum should not be saved from the disagreement between its founders and users. Even though ethereum has some cons it is still a good plan to make ethereum fork into ethereum and ethereum classic because it will help show how ethereum may crash or rise in the future and help keep ethereums network stable. Although there are some pros for ethereum classic it does not seem like ethereum classic will top ethereum. ethereum classic seems like ethereum, ethereum’s older brother who is more willing to work with others.

Author thought:

I do not have a strong opinion on ethereum vs ethereum classic, but if I am forced to choose, then ethereum is the right choice because it has been around longer and still has many of its original key members. I think ethereum would be the better coin for investors and users looking for an immutable blockchain with potential scalability in the future.

featured image: Photo by David McBee from Pexels

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