Ethereum is one of the leading names in the crypto world that uses the similar blockchain technology that Bitcoin brought to the limelight. While Bitcoin was created to be used as a decentralized currency, Ethereum had larger motives. A distinct highlight in Ethereum’s history shows that a major conflict in 2016 has caused a hardfork, and thus arose Ethereum and Ethereum Classic. There is minor but significant difference between Ethereum and Ethereum classic.
Although bitcoin is the best cryptocurrency on the globe, many predict that the future is all Ethereum’s. This is because Ethereum is a ledger technology that people use to build programmes. Each programme will have hard and fast rules which make it immutable.
People invest in crypto for many reasons. It might be to start their investment journey or to acquire equity in companies that do not accept traditional money. Ethereum uses its currency called ‘Ether’ for this purpose. Ethereum’s winning feature is the ‘smart contract’ which played a major role in attracting many users. It is a simple tool that helps in automating several codes and applications which are otherwise challenging. It is also transparent and free if government control, meaning it is open for everyone but nobody can control it. Ethereum can be a game-changer for many industries.
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Ethereum and Ethereum Classic: the origin
Ethereum was first created in 2013 which eventually split into Ethereum and Ethereum Classic. This was due to a ‘hack’ that occurred in 2015, wherein an individual or a group of individuals had found a loophole within the code and acquired $50 million from the DOA crowd-funding. Following that, there arose a conflict of interest, where few supported the idea of mining the old version of blockchain which came to be known as the Ethereum classic. Another group of people formed what is known as the current day Ethereum by altering the code and supported the notion that the hackers cannot derive the funds.
Difference between Ethereum and Ethereum Classic
As the name suggests, Ethereum classic continued to follow the original code, while Ethereum made amends to returns the lost token to the respective holders. Hence, there arose a hard fork, wherein a single blockchain technology split into two.
In the wake of this, there arose multiple opinions about the best choice between the two. While Ethereum argued that it was securing its token holders by returning the lost token, Ethereum classic believed that it was keeping the very spirit and concept of the blockchain technology alive by refraining from making decisions based on emotions.
This minor yet significant distinction between Ethereum and Ethereum classic left the people in a dilemma as to which one is a better investment tool.
What to choose?
As of 1st March 2022, One ETH is worth almost $2973, while one ETC is worth $30.
ETH has a current market cap of $305,826,572,815 while ETC has a market cap of $3,426,671,120.
The reason behind the success of ETH is primarily the security it offers. Although Ethereum classic honors the true concept of blockchain technology, many investors and users have been losing confidence in it since many tried to hack the system several times even after the major hack in 2016.
As for Ethereum, its foundation is based on better security for its users. The NFTs (Non-Fungible Tokens) also use the technology of Ethereum. Moreover, Ethereum is rising to be a better choice than its competitor Bitcoin, due to its wider range of utilities. Few industries that have already indulged in this technology are finance, gaming, insurance companies, etc. The core aspect that allows this technology to function is smart contracts.
All these reasons contributed to the success of Ethereum to emerge as the second-biggest cryptocurrency in the world. Many believe that it is not a matter of if, but when Ethereum will overtake bitcoin to be on the top.
Although ETH is valued higher, its market value is very volatile as compared to ETC which has remained relatively consistent. In terms of growth, ETH has seen an unprecedented rise in recent years. With the news of Ethereum 2.0 launching in June 2022, there are going to be many things to look forward to as far as Ethereum is concerned. Ethereum is looking to switch from proof-of-work to a proof-of-stake mechanism. With this, Ethereum is aiming to reduce its fee and make transactions even more feasible. This is predicted to cause the inevitable rise in ETH price and users across the globe.