If you are new to the blockchain space, reading the title might trigger the most common question. There are more than one type of Ethereum in circulation? Yes! The crypto ecosystem has been able to explore Ethereum Classic since the hard fork of Ethereum in 2016. To learn more about the two coins, let’s dive in!
Ethereum, the second-largest crypto by market capitalization, is an open-source blockchain system that has its own native crypto called Ether. The Ethereum (ETH) blockchain works as a crypto platform for several other cryptos and helps in the execution of Decentralised Smart Contracts.
Vitalik Buterin, the founder of Ethereum crypto described Ethereum in 2013 on a white paper along with his co-founder and secured funding for the same in a public crowd sale in 2014. The official launch date of the Ethereum blockchain was July 30, 2015. It has undergone several updates since its launch, the recent being the London Hard Fork update.
The primary goal of Ethereum is to become the global platform for decentralized applications (Ethereum Dapps) that would allow programmers and coders across the globe to run and write software that is censorship, fraud, and downtime free. It was the pioneer of the frequently used term today in the blockchain space, smart contracts. The principal innovation of Ethereum was designed to allow the execution of smart contracts via blockchain. As described by the co-founder, Gavin Wood, Ethereum was designed to become “one computer for the entire planet”.
It is now in the process of shifting from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. Referred to as Ethereum 2.0, it will happen through what is called Ethereum Merge, where the PoS-enabled Beacon Chain will merge with the mainnet.
Additional Read: How to Buy Ethereum in India
The Ethereum blockchain is capable of hosting other cryptos called “tokens” through its ERC-20 standard. This in fact is the most common use for the platform. Ethereum coin price started at $3 while Ethereum price today stands around $1600 as of writing this. This rise in price has been in a span of only six years.
Additional Read: Ethereum Merge Update
Latest News on Ethereum:
The Ethereum blockchain has been busy since 2020, for the Merge to take place. However, due to the delays encountered by the ETH blockchain developers, the majority of the steps were finally executed in 2022. Some of the steps completed this year are:
With the third testnet going live, the Ethereum developers have commented on the Merge being completed by September 2022.
Ethereum Classic came into being after a hard fork on the main Ethereum blockchain after a DAO on the network was hacked back in 2016. The older, original chain containing the history of the hack on the DAO was renamed to Ethereum Classic, while the new one that was salvaged from the hack, was named Ethereum.
In a nutshell, Ethereum Classic will be working on the principles of the older generation of Ethereum; i.e. energy-intensive proof-of-work consensus mechanism, while the new one, that is the Ethereum blockchain after the Merge, will adopt the proof-of-stake consensus mechanism. One of the major advantages for the miners working on Ethereum today will be the option for them to switch to other compatible proof-of-work (PoW) networks; like Ethereum Classic (ETC).
Ethereum Classic uses the same consensus algorithm as Ethereum (Et-hash algorithm), which is why it is more capable of continuing to cater to the similar workings of the previous Ethereum. Contrasting to that, Bitcoin uses the SHA-256 which is not suitable for GPUs built for mining on the Ethereum network. So instead of that being piled up as junk, those mining rigs will essentially be put to work on another network that pretty much works in the same way Ethereum does today, before the Merge.
Thus, Ethereum Classic will become one of the biggest beneficiaries of the Ethereum migration – which is expected to cut off earnings for as many as one million people.
The ETC Price saw a surge in its total value locked amount; more than a 100% increase in its TVL owing to the pouring of more liquidity into the project in anticipation of the Ethereum Merge.
Read more on BeinCrypto
|Coin Name||Ethereum||Ethereum Classic|
|Founder||Vitalik Buterin and Gavin Wood||Vitalik Buterin and Gavin Wood|
|Blockchain Protocol||Ethereum Blockchain||Ethereum Blockchain|
|Circulating Supply*||122,165,313.69 ETH||136,598,082.03 ETC|
|Consensus Method||Proof of Stake (after the Merge)||Proof of Work|
Source: *CoinMarketCap as of August 30,2022
|Ethereum has the biggest developer support||Running on PoW consensus gives the miners an advantage to shift to ETC while continuing on the same Ethereum blockchain.|
|With Ethereum Blockchain transitioning to a PoS consensus, it will be much more energy efficient||It is smart contract capable|
|It is smart contract capable||Being a hard fork of the Ethereum blockchain, Ethereum Classic also has a huge dedicated and loyal community|
|Ethereum has one of the biggest and most loyal community||It is much cheaper than ETH|
|Extremely high transaction costs due to gas fees||Usage of Pow consensus makes it energy intensive|
|Hub centralization issues – but that might be done away with with the ETH 2.0||Ethereum Classic has suffered various 51% attacks|
|No limit to the number of tokens available – unlike almost every other crypto out there|
Additional Read: Proof of Work vs Proof of Stake
Ethereum has been one of the most sorted after crypto according to crypto analysts during the 2021 bull run. During that time, the Ethereum price generated massive returns and somewhat maintained a consolidated trend to minimize the losses in 2022. As per many, ETH is still considered one of the better investment options compared to Bitcoin due to its stability and fewer price variations.
The ongoing Merge has also affected the price of the asset with ETH currently running at $1584, with an 8.8% surge in 24 hour value. In the coming quarter, Ethereum Price Prediction is expected to coil up to nullify the bearish impact which has been extensive in recent times. The current year close can be considered as crucial as a kickstart of a bullish year may induce significant bullish momentum & with the bearish close, new lows may be tested.
Ethereum Classic’s token ETC is at a relatively comfortable position in terms of price. The token has managed to recover a large chunk of what it lost amid the raging bear market from the beginning of 2022. Once even in March, it managed to break about the 2022 opening price to touch almost $52 levels. Currently trading at $33.5, the Ethereum Classic Price Prediction is expected to spend some time to absorb all the selling pressures before resuming rally.
Ethereum price has taken full advantage of the improvement in broader market sentiment to rally just a little less than 9% in the past 24 hours. That major hike in ETH prices had put it back quite close to its 50 day moving average on the charts and saved it from coming close to breaching its immediate support levels. Currently trading back above the psychological mark of $1500, and close to $1600 as of writing, ETH price is working hard to recover all the ground it has lost in the past two weeks almost. The Relative Strength Index has also improved to over 47 as of writing and a break over 50 would also bode well.
Read more in detail: Ethereum Technical Analysis
Ethereum Classic has been one of the star performers in the past two months. It has more than tripled in value from its July 2022 lows, going all the way from $13 in the middle of July to above $44 at its peak in the middle of August 2022. ETC has been on the uptrend ever since the news regarding Ethereum Merge solidified. On the technical side, ETC has also undergone a golden crossover where the 50-DMA has crossed over 200-DMA and indicates a strong bullish sentiment going forward.
Ethereum is one of the top crypto tokens by market cap and with its Merge completed soon, the Ethereum blockchain is soon going to be more energy efficient and will bring a major change in the fundamental functioning, opening up the doors to many more use cases in the space and drive further investment narrative for the altcoin king.. Thus, many ETH stakers are looking forward to Ethereum Merge for a smoother and faster process. While that may be the case for early adopters, many crypto enthusiasts, who have already invested in buying mining equipment are looking for ways to keep mining, for which they would need a blockchain that is running on the Proof of Work consensus. For those, ETC is an alternate option. However, before choosing any crypto token it is important to conduct thorough research of your own.
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