One of the things that every new crypto investor quickly notices is that the second largest cryptocurrency — Ethereum — is not the only coin to carry this name. The second one, of course, is Ethereum Classic (ETC). It is not an accident that there are two Ethereums out there, and they actually share a lot in common. However, despite the fact that the two have a pretty interesting story, most investors are quick to start comparing them. This ETC vs ETH debate has been going on for quite some time now, and everyone pretty much only wants to know which coin has a greater potential for the future. This is what we will explore today.
ETC vs ETH: The origins of Ethereum Classic
Before Ethereum Classic came to be, there was originally only Ethereum (ETH). It was designed to be a platform where various decentralized applications (dApps) and other cryptocurrencies can be built. It also made smart contracts into what they are today. For a time, everything seemed to be going well for ETH, until a large hacking attack was made against its network. An unknown hacker (or hackers) attacked Ethereum, and the hack resulted in $50 million lost to the attacker.
This represents one of the biggest events in Ethereum’s (and crypto) history, which later led to ETC vs ETH split. The attack used a flaw in DAO (Decentralized Autonomous Organization). In essence, DAO is a decentralized type of a hedge fund or venture capital, that was created for the purpose of funding dApp creation on Ethereum.
Funders would have the ability to invest money, which also gave them the power of choice regarding which dApps will receive the money. The DAO also had a split function, that allowed investors to exit it, and receive their investment back, in case they changed their mind. However, it wasn’t as secure as everyone believed it to be, and soon enough — a large flaw was found and exploited.
In short, this flaw allowed for multiple requests to exit the DAO, and each request received the amount of coin that an individual invested. After uncovering this loophole, an unknown hacker managed to send enough requests to receive as much as $50 million in total. Ethereum’s developers and community uncovered the flaw too late, and once they did, they started searching for a solution.
In the end, the only thing they could think of that would solve the issue quickly enough was to create a fork. That way, ETH blockchain would stop entirely, and they could create something new. This “something new” later became Ethereum as we know it today. On the other side of the fork, there remained Ethereum as it was previously, which was since became known as Ethereum Classic.
ETC vs ETH — The difference between Ethereums
Now that we know how Ethereum and Ethereum Classic came to be, let’s see their similarities and differences.
Since the split, the majority of old Ethereum’s users came to the new Ethereum (ETH). Only around 10% of the original community decided to remain “loyal”, and stick to Ethereum Classic. Even so, they are mostly in the shadows, with none of them gaining an active role on ETC blockchain.
The new Ethereum, meanwhile, became something of a software company. It aims to grow and expand, and maybe even go through additional hard forks at some point in the future. ETH blockchain’s leaders within the community also became much more vocal and supportive, which has allowed ETH to land some pretty big partnerships.
Over time, ETH continued to grow bigger and bigger, while ETC remained somewhat secretive and quiet. After the hard fork, ETC community discovered that Ethereum Classic is not backward compatible with Ethereum. This means that it cannot use new Ethereum updates, such as the introduction of Proof of Stake instead of Proof of Work.
Of course, while this poses quite an issue for ETC, Ethereum itself did not go through this ordeal without its own problems. The biggest one is that there is a possibility of additional hard forks in the future. Many have started wondering if this can allow ETH community leaders to manipulate Ethereum’s blockchain, and maybe cause additional hard forks. Obviously, the risk has affected ETH’s price negatively since then, and the price remains volatile as a result.
It is clear now that after the ETC vs ETH conflict, Ethereum gained pretty much everything. Its price is much higher than that of ETC, and it is also favored by a large majority of old Ethereum’s community. At the time of writing, ETC is valued at $10.88 per coin, while the price of ETH is at $225.25.
However, while the hard fork is seen by many as a negative event, it is possible that everything that Ethereum has achieved so far would not have happened without it. Thanks to the hard fork, ETH implemented PoS, it became the number one platform for crypto and dApp creation, and it still manages to hold onto the position of the second largest crypto. Additionally, its community is among the strongest and largest ones in the industry.
ETC, however, remains stained by the DAO incident, and many agree that the coin is slowly sinking deeper and deeper. In the end, nobody knows what will happen with ETC. The coin may quietly disappear, or it might come up with a way to get back into the game.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
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