Ethereum Classic vs Ethereum: comparison of competing coins

The feature that unites the two coins is the decentralized nature – both of them are based on a blockchain crypto platform that provides the ability to develop decentralized applications (DApps) based on smart contracts presented with open and available source code. In two minds about which one to invest in? Check out the aspects below.

Investments

Both cryptocurrencies have high volatility, but until 2021 Ethereum showed a higher growth rate than Ethereum Classic. Since the beginning of 2021, ETC has grown 10 times and seems to overtake the competitor, but only thanks to the updates made over the last year. If they hadn’t happened, the extinction of Ethereum Classic might have been inevitable.

On the other hand, Ethereum Classic is the second cryptocurrency after Bitcoin, and the probability of its collapse is minimal.  So ETH is the best choice for longer-term savings. But if you are ready to take risks, then keep in mind that ETC’s chances of future growth are higher. You can follow this link to view the ETC forecast for the near future.

Public acceptance

Thanks to its reputation and key figures of the crypto community as part of the team, including its creator Vitalik Buterin, Ethereum has a much wider acceptance in terms of public acceptance. In terms of interaction with various government and business structures, Ethereum has overtaken not only Ethereum Classic, but all other cryptocurrencies.

On the other hand, Ethereum Classic has a dedicated community united by a commitment to the principle of blockchain immutability, which was broken by Ethereum’s hard fork. They argue: if once there has been an intervention in the blockchain, then where is the guarantee that this will not happen again? In some ways they are right, so Ethereum Classic will always have enough supporters. In addition, its team also includes quite famous developers, for example, the co-founder of Ethereum Gavin Wood.

And of course, taking into account the recent changes in the rules of reward for mining Ethereum, ETC may become a more attractive cryptocurrency for miners.

Stability and Scalability

In Ethereum, the network will become more scalable. Its expected performance index is 100,000.

ETC keeps to its policy and does not support updates. Its TPS indicator is limited to 19.

Mining

ETH applies the PoS consensus whereas Ethereum Classic is grounded on the algorithm PoW.

As a result, the profitability of Ethereum mining will decrease by about 20%. Given the fact that the same equipment is used for ETH and ETC mining, many miners may switch to Ethereum Classic.

Transaction speed

Both tokens show almost identical results in terms of the block speed –13 seconds.

Coin Offer

The ETC’s maximum offer is not more than 210,700,000 tokens.

Ethereum’s highest supply matches its circulating funds.

Commissions

The average funds’ transaction fee of ETH equals 0.00129426 ETH while ETC takes 0.0000828 ETC.

Both ETH and ETC use so-called gas to conduct transactions. To understand in detail how this works, a separate article is needed. We only note that the more commission the user is willing to pay, the faster his transaction will take place.

At the moment, this is $ 4.17 and $ 0.005, respectively. Yes, commissions on the Ethereum network are much higher than those of a competitor.

Market cap

For years, Ethereum has remained the leader, second only by market cap to bitcoin.

Ethereum Classic’s positions fluctuate between 30 – 40th.

Advantages of Ethereum Classic

  • The ETC originators are optimistic about its prospects as it holds more active accounts than Cardano, BTC Cash, Dash, Litecoin, Tron, Monero, NEO, and Zcash combined.
  • Ethereum Classic is the original Ethereum: since Ethereum Classic is an unchanged version of the Ethereum blockchain, many refer to Ethereum ClassETC is cheaper than ETH, so it is an ideal asset for newbies.ic as the original or real Ethereum.
  • ETC is cheaper than ETH, so it is an ideal asset for newbies.
  • Ethereum Classic has switched to controlled emission by analogy with bitcoin. If the BTC indicator is limited to 21 million, then the ETC reaches 210 million.
  • Supported smart contracts. A set of tools for creating decentralized applications comprises unique components for developers, like the user interface, libraries, or build tools.
  • ETC focuses on the IoT– the Internet of Things.
  • ETC trying to connect with Ethereum. For example, the ETC Agharta and Phoenix hard forks makes Ethereum Classic more compatible with Ethereum.

Disadvantages of Ethereum Classic

  • Ethereum Classic is not backward compatible with Ethereum. This means that anyone who supports ETC will not be able to access any of the ETC updates (including ETH’s transition to Proof-of-Stake).
  • Ethereum Classic is considered insecure. The fact that Ethereum Classic has been repeatedly subjected to various 51% attacks has led to a deterioration in trust in the platform.
  • Ethereum Classic has a dubious reputation. It is also influenced by various speculations about ETC scams and attacks on Ethereum with the aim of spreading in the crypto sector. Blogger David Seaman even said: “Ether Classic is an insecure orphan chain, promoted in a way that would be illegal if Ethereum were a publicly traded company.”

Conclusion

After studying all of the above information, we can conclude on the advisability of investing in Ethereum Classic. Undoubtedly, ETC can be a really risky investment. While Ethereum’s leading position seems to be unshakable, Ethereum Classic will always be considered its less popular sibling. At the same time, Ethereum Classic has a strong community of supporters who believe in the immutable nature of the blockchain, insisting that “Code is Law.”

In addition, the current price of ETC is seen as a low barrier for crypto investors and traders, especially when compared to ETH.

In general, Ethereum Classic is an investment with medium risk and many potential rewards. However, if you do decide to invest in ETC, you should always do research and invest in an effective risk management strategy. ETH looks like a more reliable investment at the moment.

Previous ArticleNext Article
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.
>