Ethereum vs Ethereum Classic Compare ETH and ETC

On the 15th of July 2016, a short-notice on-chain vote was held for the proposition of the DAO hard fork. 3,964,516 ETH (87%) voted in favor, with 1/4 of that coming from a single address, while 577,88 ETH (13%) opposed the DAO Fork. There was some criticism of the hastily held vote but as of Block Number 1,920,000 the Ethereum network officially forked from Ethereum Classic. Ethereum Classic has vowed to continue using Proof of Work mining to secure its blockchain and will not be including updates from the forked Ethereum network.

Ethereum Classic’s native Ether token is a cryptocurrency traded on digital currency exchanges under the currency code ETC. ETC can be exchanged for network transaction fees or other assets, commodities, currencies, products, and services. Like Bitcoin, Ethereum Classic uses a Proof of Work consensus mechanism to validate transactions. Network security is handled by miners who, using their time and computation power, process transactions and produce blocks.

Ethereum Proof of Stake Date

Instead, it ensures network security by having users stake an amount of their cryptocurrency in hopes that the system will randomly choose them as a block validator. Proof of Work is one of the main reasons why blockchain technology has a less-than-stellar environmental reputation. Together, the Bitcoin and Ethereum blockchains use more than 317 TWh hours of energy annually, which places them squarely between Italy and the United Kingdom in terms of electrical energy consumption. The formation of Ethereum Classic emerged as an offshoot of the original Ethereum blockchain platform that was created in 2015. The current Ethereum chain has made some changes over the years, but it remains a popular choice among cryptocurrency investors. Ethereum Classic will be the only top proof of work smart contracts blockchain.There are no other top smart contracts platforms that use the proof of work based Nakamoto Consensus mechanism.

Make sure you have an easy to use Ethereum wallet so that you can adapt to the new Proof of Stake consensus mechanism and take part in the decentralized economy. Validators, however, will be able to receive liquid ETH rewards from network validation. Although they will still be unable to withdraw until the Shanghai upgrade, validators will be issued a unique address that contains their staked ETH and network rewards verified by the Beacon Chain.

Code is law

The people who validate transactions contribute their stakes to the mining process for the chance to add a new block to the chain, thus producing a reward. Ethereum features a platform that allows prior transactions to be altered and adjusted. However, Ethereum Classic uses the original Ethereum system that encouraged immutability, a process where users cannot alter transactions in the blockchain’s history. Developers will receive new Ether for every block they add to a ledger and from the transaction fees they collect from smart contracts. This reward system encourages people to use the platform to build their dApps. As complementary base layer systems, Bitcoin and Ethereum Classic will work as digital gold.

Contrary to most people’s first impression after hearing the news, Ethereum 2.0 is NOT a new blockchain. In fact, it is a set of interconnected updates to the existing mechanism. The Proof of Work consensus mechanism is not sustainable and not scalable long-term.

Centralization of Staking on Exchanges

The type of consensus mechanism that is most suitable depends on the needs of a network. For instance, PoW is usually said to be more suitable for fraud prevention, security, and trust-building in a network. Consensus mechanisms are an integral part of blockchain networks, ensuring decentralisation of the parties in charge of validating transactions. To achieve a blockchain’s paradigm characteristics of being immutable, trustless, and distributed, a reliable consensus mechanism is required. This is because the rewards for Ethereum mining come in the form of transaction fees, so when there is more traffic, miners will select blocks that pay higher returns for the same amount of work. In especially high-traffic situations, users looking to pay lower gas fees may be stuck waiting for their transactions to be validated.

For example, Kraken requires 40,000 confirmations that would need nearly 6.5 days to , whereas Coinbase requires 20,000 confirmations, which in August 2020 meant close to two weeks to complete the transaction. Proof of Work makes miners compete in solving complex mathematical problems to validate transaction blocks. If you want a more precise way to calculate potential returns on an Ethereum stake, there is an Ethereum staking rewards calculator called ETH 2.0 Calculator that is set to launch in conjunction with Ethereum 2.0. The model for the calculator is being discussed in a Telegram group called ETH 2.0 Calculator if you’d like to get a clearer preview of what your potential ETH staking rewards might be. You can still participate in the Ethereum blockchain without acquiring the necessary 32 ETH to become a network validator. A post-Merge Ethereum world will also have important consequences for those who have been involved with network consensus on the old mainnet.

There is also some ideological controversy surrounding the merge’s effects on the decentralized nature of Ethereum. Several well-known Web3 entities — including Lido, Coinbase, Kraken, and Binance — control large percentages of staked ETH on the Beacon Chain, leading some to fear that they could become targets of censorship attempts by government agencies. Crucially, though, the hackers were able to keep their funds on their version of the forked chain, which became known as Ethereum Classic. Ethereum is subject to various possible future changes while Ethereum Classic has decided to strictly adhere to Ethereum’s original rules. The design ensures that people can track different trades made on the blockchain, while ensuring all information is kept pseudonymous.

Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk. Last year the co-operative started to support work on the Hyperledger Besu client and recruited key developers for the ETC Core Team. On 22 December 2021, it announced that development work on the Core-Geth client would be funded by the ETC Cooperative.

Checking if the site connection is secure

For this kind of https://www.beaxy.com/, a Google spreadsheet is far, far less “secure” than Bitcoin, as it can be taken over by a single party, Google, with zero effort. The first popular blockchain, Bitcoin, uses Proof of Work; a relatively simple, tried and true consensus mechanism that essentially converts electricity into security. The application of Proof of Work as a consensus mechanism for blockchain execution was the keystone crowning achievement in the genius design of Bitcoin. Its application solved the Byzantine Generals Problem and thus provided a decentralized solution to double spending, a discovery that made blockchain technology as we know it viable. One criticism of PoS networks is that centralization and inequity are natural consequences of their structure, and the Ethereum Classic community hopes to avoid these pitfalls, such as 33% attacks. 33% attacks happen when one user controls more than a third of all coins , enabling them to potentially halt the production of new blocks.

Real-time DEX Feed Watch top decentralize exchages for real-time transaction notifications Web3 Wallet Registry View supported wallets and networks in Onboard. Not to be confused with the cryptocurrency ADA Ethereum, Ethereum Classic functions independently. Ethereum Classic operates using the blockchain and consensus rules that originally governed Ethereum. While Ethereum Classic is among the top cryptocurrencies by market capitalization, its market cap is far smaller than that of Ethereum. PoS is a newer approach that aims to address some of the inefficiencies of the PoW consensus mechanism and reduce the computational resources required.

As the etc proof of stake is showing, even though there are many speculative projects in the industry, very few are the ones that are and will eventually gain a dominant market share, especially at the base layer. As seen in the table below, if the base layer only achieves 50% of the value of gold in ten years, then Bitcoin will be worth $3 trillion or around $143,000 per BTC, and Ethereum Classic $1.5 trillion or around $7,100 per ETC. The base layer will be analogous to gold which has about $9.8 trillion in value today, and is projected to be worth around $12 trillion in ten years. The ten year price projection of gold assumes that gold will increase in price at the average projected inflation rate for the next ten years, which is 2.17% .