Notre comparaison Ethereum vs Ethereum Classic! – The division between Ethereum and Ethereum Classic in 2016 is one of the most famous stories in the history of cryptocurrencies. The Eth vs Etc debate arose from the fact that some thought it was a good idea, while others were against!
In this guide, I’ll start with an explanation of the reasons behind this split and how it was able to create a whole new blockchain and cryptocurrency called Ethereum Classic.
I will then explain how the two blockchains are different and how each of their cryptocurrencies has performed in terms of price since the famous split.
By reading this Eth vs Etc guide, you will be able to decide which of the two projects you prefer! Whether as an investor, or as a user.
So what are you waiting for? Let’s find out what really happened during the Ethereum fork!
ETH vs ETC: The Beginning
Ethereum was launched in 2015 after being created by Vitalik Buterin in 2014. This blockchain has opened up many more possibilities to the blockchain than the simple financial transactions that Bitcoin is limited to, Ethereum allows people to create what is called smart contracts.
The smart contract allows two or more people to enter into an agreement, without the need for an intermediary. To give you an example, let’s say you want to send money to your friend automatically every birthday.
Yes, you can do it yourself by going to your local bank, but it is much more interesting to do it through a smart contract to send it automatically without needing a bank, right? ?
This is only a small part of what smart contracts can do; the possibilities are limitless. The smart contract can be used for anything: Rent, insurance, games, voting, investments etc!
This technology ensures that a contract will be executed fairly – no need to trust anyone to get it executed.
To learn more about smart contracts, you can read our guide “What is a smart contract”. Don’t forget to come back to this article because the story on the Eth vs Etc fork is about to get very interesting!
So, knowing how revolutionary smart contracts are, someone decided to create a new project called DAO, which stands for Decentralized Autonomous Organization. The purpose of the DAO was to act as a venture capital fund that would operate in a decentralized ecosystem.
For the project to start, a significant investment from the crypto community was needed. When I say important, I weigh my words. In fact, a total of $ 150 million in ETH was raised in just 28 days!
People were so excited about the DAO project that it was able to collect almost 14% of the ETH coins in circulation!
What happened next is shocking. After the DAO finished its investment campaign, it got hacked! Someone stole more than a third of the funds, or $ 50 million, from the DAO wallet.
It wasn’t a security issue with the Ethereum blockchain, it was because the developers of the DAO made a mistake while creating it.
After the attack, investors feared that the price of ETH would drop even further, having quickly dropped from $ 20 to $ 13.
Due to the way the DAO smart contract was constructed, the hacker could not access the stolen $ 50 million until after 28 days! So the Ethereum community has had time to decide what to do about it.
Ethereum developers have suggested two possible options.
- To create a hard fork de la blockchain Ethereum
- Do nothing
This is where the Ethereum vs Ethereum classic debate really started!
Create a Hard Fork
If you don’t know what a hard fork is, then let me enlighten you. Basically, it’s changes to the original code of a blockchain. This results in a division of the blockchain in two. (The new blockchain consists of the nodes / computers that downloaded the update).
If only small changes are needed, then this will be a soft fork. On the other hand, if big changes are necessary, it will be a hard fork!
This hard fork had to be done, because a lot of money had been stolen, and that money was going to be available to hackers after 28 days.
To understand what a hard fork is, let’s compare it to the computer you are using.
- Imagine one day receiving a notification from Windows telling you that you have 28 days to update your computer to the latest version, otherwise it would no longer be able to recognize new updates.
- If you ignore this notification, your computer will only recognize updates that occurred before the hard fork!
- In the crypto universe, anyone who does not switch to the new software will not be able to validate new transactions!
The hard fork will have allowed Ethereum developers to reimburse all the people who lost their money by investing in the DAO.
Some felt that by hard forking the original blockchain, it would go against the concept of decentralization of blockchains.
These people understood that a lot of people lost money, but they thought it was more important to let Ethereum go on as it was.
They argued that the hack was not due to the Ethereum blockchain, but to poor security at the DAO project level. For them, “the code is a law”, and it cannot be canceled!
What Has Been Decided? Fork ETH vs ETC
Since it is impossible to make changes to a blockchain without it being put to a vote, the Ethereum community had to decide which option to follow – what would you have decided if you were in their shoes?
Well the majority of people decided that too much money was involved to ignore this incident so they hard forked!
After this decision, the Ethereum blockchain kept its name but now operated as a hard fork.
People who disagreed with the fork decided to stay on the original blockchain, which is now called Ethereum Classic!
There you have it, you now know the origin of the Eth vs Etc debate, and why the fork took place! I will now explain the main differences between the two blockchains!
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Ethereum vs Ethereum Classic: Les Différences
In fact, there aren’t many Eth vs Etc differences! The hard fork was intended to eliminate the $ 150 million that was sent to DAO, not to make technology upgrades.
Don’t be confused if you see people talking about this division using the phrase “Etc vs Eth”, these are just the symbols used to describe Ethereum Classic vs Ethereum!
Now let’s talk about the story behind the Eth vs Etc fork!
Ethereum Classic vs Ethereum: Toute L’histoire
You now have a clearer idea of the history of Eth vs Etc, and their common points. Now let’s talk about their performance in the market since the 2016 fork!
Ethereum has performed very well. In fact, in 2017 alone, its value increased by over 10,000%! It is now the second most popular blockchain behind Bitcoin
This success is due to several reasons. First, when new cryptocurrencies are created, many of them decide to build their project on the Ethereum blockchain.
This adds value to Ethereum, but it is also a huge boost to its reputation and it increases the demand on Ether which is required for all transactions made by applications created on Ethereum.
Then, most ICOs (Initial Coin Offerings) that raise funds do so in Ethereum instead of Bitcoin. The amounts involved are quite large, which further increases the demand on Ether!
Note: The ICO is a way for new crypto projects to raise funds. They collect Ethereum from investors in exchange for their own newly created token / cryptocurrency!
Third, the team that developed the original Ethereum moved to the hard fork blockchain, abandoning Ethereum Classic. This was the case for Vitalik Buterin, one of the most famous developers in the blockchain universe!
What made people trust the Ethereum project is why it fared better in the Eth vs Etc duel.
Although Ethereum Classic is less popular, it is still a respected currency. In 2017, it recorded gains of over 1,500%, which is good but it is lower than Ethereum’s numbers.
The fact that the team currently working on Ethereum Classic is less well known makes people trust this project less.
As a result, fewer people are using Ethereum Classic vs Ethereum, but the good thing is that it results in transactions being processed faster because the network is less busy!
Now that we’ve seen the performance of both currencies since the fork, let’s see if I can help you with your decision!
ETH vs ETC: What to Choose?
It is difficult to make a decision on which cryptocurrency to use. In our Eth vs Etc duel, it is evident that Ethereum has become much more efficient than Ethereum Classic, which is clearly reflected in the value of both assets.
Ethereum is not only popular with investors and at ICOs, but there are also many new cryptocurrencies that are choosing the Ethereum blockchain to build their project. These advantages make Ethereum the second most popular crypto project.
If not, what is your opinion? Do you share the opinion of Ethereum classic which is against this hard fork? If you think it shouldn’t have happened, it’s possible that more and more people will agree in the long run.
One of the main events to watch closely is the possible switch from Proof of Work to Proof of Stake. This will reduce the amount of power required by nodes / computers to verify Ethereum transactions!
Ethereum developers are also working on new protocols for them planned at the same time as the Proof of Stake, the goal being to increase the number of transactions that the Ethereum blockchain can process per second.
If ETC keeps a Proof of Work consensus, that will be the biggest technological difference between the two.
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Ethereum vs Ethereum Classic: Conclusion
If you’ve read our entire Eth vs Etc guide, you now understand why the fork happened! This is a subject on which you will no longer wonder.
The story is really interesting, and you should know that people still disagree to this day! If you were involved in Ethereum at the time, would you have preferred a fork to happen, or not?
Also, you now have a clearer idea on which currency to choose, and which will be the most successful in the future. In the comparison, Etc vs Eth, Ethereum is arguably the most famous right now, but do you think Ethereum Classic will do as well?
The great thing is that both currencies are very easy to buy as they are supported by most exchange sites!
So what do you think of my Eth vs Etc guide? I would love to hear from you!
Do you own one of the two cryptocurrencies, if so which one? Or maybe you’ve invested in both!
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