Ethereum classic just like any other cryptocurrency is an open-source platform that is based on blockchain and allows distributing computing systems. Like Ethereum it also enables smart contracts that are of self-executory nature. It has duly strived to maintain the history that the Ethereum network has offered. It refers to its origin as a hack that was seen in the Ethereum network in the year 2016.
Its blockchain had deviated into two main blockchains, the one being the Ethereum and the other being the Ethereum classic. After such a split Ethereum is now known to be the latest blockchain where Ethereum Classic is the older version. The principle that it follows is “CODE IS LAW” which talks about the smart contracts that are executing themselves without the need of a middleman to get it done for you.
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If the terms and conditions or the actions that are to be done have been performed these contracts automatically execute themselves. For example, generally in the physical world, an unfulfilled contract attracts a lawyer or any third party that will execute it for them but in smart contracts, third parties like lawyers, etc. are not required.
These applications are called DApps that have the capability of working on their own and per the programming that it has been made into.
HISTORICAL BACKGROUND
This cryptocurrency is a result of a hack back in 2016 when a huge amount was stolen worth 5o million dollars. As a result, the Ethereum classic was formed as a fork to deal with these issues and to provide security to the users. The two cryptocurrencies namely Ethereum and Ethereum Classic were brought to the crypto industry as a result. The split was aimed to retrieve the funds that had been stolen as per the records.
Both the currencies have different currencies that they use for transactions and on the exchange platforms. Ethereum uses an ETH token while the other uses ETC. After the split, these two currencies are existing parallel with each other.
DIFFERENTIATING THE TWO CRYPTOCURRENCIES
- The first difference that lies is that of the ideologies that the two have.
- Ethereum classic is said to be based on speculation whereas Ethereum is said to be more reliable in terms of trading as per its support and popularity that it has gained with time from people and also known businesses.
- In terms of the market cap also both currencies have huge differences whereas circulation is somewhat similar. As per market cap ETC has a capital of around 4 million dollars whereas ETH has a cap of 309 million dollars which is a huge difference.
- Further, if we talk about security as well, people are more driven to the ETH coin and as a result, people will show their investing concerns to the ETH because the reason why Ethereum classic came out has now become a farce.
- Support is another point of consideration while investing in these two currencies. As we are familiar with the fact that Ethereum stands in the second position after Bitcoin and has been successful enough for years to hold its position because of the smart contract feature and the support that it has got over time from big names and big companies.
CONCLUSION
The above-mentioned topic discusses the Ethereum Classic and Ethereum cryptocurrency, their origin, and how different they are from each other. As we know ETC has come out as a fork to deal with certain primary security issues. The topic has discussed in detail all the necessary information and I hope I have made a successful attempt in doing so.