Ethereum vs Ethereum Classic: What is the Difference?

If you’re like me, then you might be wondering what the difference between Ethereum and Ethereum Classic is. In this article, we’ll take a look at both and see what the similarities and differences between the two really are.

The main difference between Ethereum Classic (ETC) and Ethereum (ETH) is that ETC is a speculative digital asset with a fixed supply. Whereas ETH is the more popular and accepted version that is widely traded, with no fixed supply. Both are the result of a hard fork that occurred when Ethereum Classic was hacked in 2016.

Now, let's get into the main difference between Ethereum and Ethereum Classic.

One of the main differences between Ethereum is that it has plans to migrate from proof of work (PoW) to a new system called proof of stake (PoS). Ethereum Classic, however, intends to keep traditional mining on its own blockchain after Ethereum migrates to PoS.

Also, similar to ETH, new ETC is issued to the circulating supply as a reward for miners and has a maximum supply of 210,700,000 coins, whereas ETH has no fixed supply.

Originally, the Ethereum blockchain was created as a single blockchain in 2015, but in June of 2016, the blockchain was hacked resulting in $60 million of stolen crypto. As a result, a hard fork was performed to secure the network, hence how the new Ethereum emerged and created two separate versions.

Now that we know the difference between ETH and ETC, we can discuss how each one is used.

Ethereum Classic is an open-source blockchain that is the result of a blockchain split that occurred from a hack in the original Ethereum network. The split resulted in two separate blockchains, Ethereum Classic and the new Ethereum. Now, ETC is Ethereum Classic’s native currency that is used to power transactions and smart contracts on its network.

Aside from securing the network, the hard fork also resulted in the return of all the stolen funds to the original owners. Since the split, there have been continued upgrades to the Ethereum Classic network. The main aim of Ethereum Classic is described as a focus on immutability, popularly expressed as “code is law.”

According to Ethereum.org, “Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.”

Ethereum is a technology that is used for many things including, digital currency, global payments, and applications. It’s also decentralized and open to everyone who has internet. 

Ethereum’s DeFi system is 24/7, meaning that you can send, receive, borrow, earn interest, and send funds anywhere in the world at any time of day. However, Ethereum isn’t just digital currency, it can also represent anything you own in the form of an NFT. 

Also, you can use Ethereum without giving up any of your personal info, all you need is a wallet. Whereas with the internet we know and love today, we have to give up control of our personal data.

Ethereum Classic (ETC) does not follow the same price trajectory as Ethereum (ETH).  Currently, ETC is trading at $26, and ETH is trading at $2,800. One of the main reasons for the price difference is that ETC has a fixed supply, and ETH does not.

Currently, the main focus for ETC is to support the concept of code is law. Essentially, code is law simply means that no one has the right to censor the execution of code on the ETC blockchain.

Ethereum Classic still facilitates running smart contracts and offers the benefit of decentralized governance. In other words, the contracts can be enforced without a third party involved, such as a lawyer or another overseeing entity.

At the end of the day, Ethereum continues to reign supreme over Ethereum Classic as the preferred blockchain for buying, selling, and creating NFTs.

That's not to say that ETC doesn't have a future, it just means that ETH will likely continue to be the more trusted and popular blockchain of the two.