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Ethereum Classic [ETC] vs. Ethereum [ETH]; What actually is the difference?

Anirudh VK

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Ethereum Classic [ETC] vs. Ethereum [ETH]; What actually is the difference?
Source: Unsplash

Ethereum Classic [ETC] is slowly becoming a favorite investment to many new players in the cryptocurrency space. Moreover, prominent experts such as Charles Hoskinson have taken the side of Ethereum Classic over the current version of Ethereum [ETH] that exists today.

However, this raises the question among many, what is Ethereum Classic and how is different from the Ethereum we know today? To understand this, we must go deeper into the history of the network.

In January of 2014, a Russian-Canadian programmer known as Vitalik Buterin proposed a platform known as Ethereum, pitching it as a platform that does something that Bitcoin could not. At its heart, Ethereum is a decentralized smart contract and dApp platform. It runs on its own cryptocurrency known as Ethereum and utilizes it to build and execute smart contracts and digital application.

The power of Ethereum comes from its Turing-complete Virtual Machine, a perfect playground for those wishing to create projects based on cryptocurrency. After the introduction of the ERC20 standard for token creation, the blockchain has become a positive hub of cryptocurrency development.

Foreseeing this, a group of developers set out to create the Decentralized Autonomous Organization two years after the launch of the program. However, they did not see the can of worms it was about to unleash upon the Ethereum community.

The organization was designated as being a decentralized venture capitalist fund for cryptocurrency-related projects. There was no board of directors or employees involved in the process, thus building an atmosphere for the creation of new ideas.

The DAO token sale was successful and raised $150 million. However, due to a bug in the implementation of DAO’s code, thieves were able to steal $50 million of the funds.

This led to a huge loss in the general sentiment of investors in the Ethereum blockchain, stemming from a general belief that the ETH blockchain was hacked. This threatened to destroy Ethereum itself, a project still in its nascent stages. Therefore, a majority of the Ethereum community decided to enact a hard fork, which rendered the transaction that stole the $50 million of funds invalid.

While this move resulted in the money of the investors being returned, there existed a minority chain after the split of Ethereum. They continued to maintain the immutability of the Ethereum blockchain while believing in the notion of “code is law”. These were the group of people that stayed on the chain which did not render the DAO transaction invalid.

Since then, there have been multiple changes in the Ethereum and Ethereum Classic chains. While most of the big-hitting players such as Gavin Wood and Vitalik Buterin moved to the chain known as Ethereum today, there existed a group of Ethereum community members bent on preserving the immutable nature of the blockchain.



Moreover, ETH and ETC also differ in their monetary policy, with ETH having an uncapped total supply and a fixed yearly supply. ETC, on the other hand, has a caped issuance of 230 million after a prediction of 210 million. It also does not have the capacity to move to Proof of Stake and reduces block rewards every 5 million blocks.

ETC’s claim to fame is that it has never been altered. They also claim that ETH might fork again in the future in a similar situation, and is therefore not immutable. Even two years after the event, there still exists a split. However, it is important to see what will ensue in the future and whether actual immutability will prove to be a driving point for crypto-entrepreneurs in the future.





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

Bitcoin Dominance Index [BDI] falls short of Bletchley Ethereum Token Index [BETI] in 2019

Biraajmaan Tamuly

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Bitcoin Dominance Index [BDI] outperformed by Index based on the Ethereum blockchain in 2019
Source: Pixabay

One of the key factors which is often used to represent or indicate the potential of a particular cryptocurrency’s growth is its market capitalization. When the market capitalization of a coin or token showcases a positive hike, it usually has a positive impact on that particular asset’s market.

According to LongHash, the Bitcoin Dominance Index [BDI], which is used to measure Bitcoin’s market cap had been the dominant index since the beginning of 2019. It was observed that the BDI improved from 53 percent to 58 percent over the past few weeks after the largest crypto-asset underwent multiple price hikes.

XRP, which dominated Bitcoin by 1,600% back in 2017 on cryptocurrency exchange Bittrex in 2017, was currently down by almost 50% against Bitcoin in 2019. Ethereum [ETH] fared better comparatively, but was still down by 14% against the Bitcoin.

However, the Bletchley Ethereum Token, a token built on top of Ethereum, seemed to have outperformed Bitcoin this year.

The Bletchley Ethereum Token Index [BETI] can be utilized by investors for their allocation to tokens placed on top of the Ethereum blockchain. However, it should be noted that Ethereum is not a part of the index as it is an independent entity. The BETI is a weighted index, which means that the tokens with dominant market caps will take up a larger part of the index and the re-balance will take place at the end of a particular month.

For example, Tron [TRX] and Binance Coin [BNB] currently take up more than half of the BETI’s Weighted Index. Since the launch of their DEX, BNB has enjoyed a lucrative year with multiple hikes bringing the coin to $30 from under $6. Tron also witnessed major growth in market cap as it was up by 40% in comparison to the US dollar.



However, it is important to note that the major tokens on the BETI’s weighted index have all launched their own blockchain, at press time. Hence, it can indicate that the dominance enjoyed by BETI over the BDI over the last few months could point to a situation where the Ethereum blockchain was preferred for the launch of various tokens.

Despite the aforementioned reason, it is safe to state that Bitcoin was not the only entity which dominated the crypto-space this year.





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