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ETC vs ETH: Story of Ethereum and Ethereum Classic

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ETC vs ETH

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.

Final thoughts

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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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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