{"id":5354,"date":"2022-09-30T08:01:51","date_gmt":"2022-09-30T08:01:51","guid":{"rendered":"https:\/\/paybis.com\/blog\/?p=5354"},"modified":"2023-07-21T13:59:13","modified_gmt":"2023-07-21T13:59:13","slug":"ethereum-vs-ethereum-classic","status":"publish","type":"post","link":"https:\/\/paybis.com\/blog\/ethereum-vs-ethereum-classic\/","title":{"rendered":"Ethereum Classic vs Ethereum – Differences & Investment Tips"},"content":{"rendered":"

Most new investors will often get confused when they come across Ethereum and Ethereum Classic. What makes them different? Why is one more valuable than the other? Which one is best to buy? What is Ethereum anyways? If you\u2019re pondering the same questions, you\u2019ve come to the right place.<\/span><\/p>\n

In this article, we give a complete breakdown of Ethereum vs Ethereum Classic in a short-form read. We help you understand their main differences and the events that shaped them. Read on to discover a little more crypto history and learn how to make better investment decisions.<\/span><\/p>\n

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What is Ethereum?<\/span><\/h2>\n

Ethereum is the second-largest cryptocurrency and the first to implement smart contract technology.<\/b> Launched in 2016, Ethereum made it possible for blockchain developers to create decentralized applications of all types, expanding its initial use case of digital payments.<\/span><\/p>\n

Even since its launch, the project has seen significant growth and is now the underlying foundation for a major part of the crypto economy. This includes most NFTs, dApps, blockchain-based games, as well as cryptocurrency tokens.\u00a0<\/span><\/p>\n

The expansion of Ethereum\u2019s utility has also been beneficial for the value of its token. In 2021, the <\/span>Ethereum price<\/span><\/a> peaked at nearly $5000 after a long recovery from its previous lows.<\/span><\/p>\n

Additionally, many believe that the current bear market, paired with the network\u2019s recent upgrades, makes Ethereum one of the most undervalued investment opportunities.<\/span><\/p>\n

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The DAO hack<\/span><\/h2>\n

When comparing Ethereum classic vs Ethereum, it\u2019s important to know that both versions were originally one and only later split as the result of a hard fork. The story behind the split centers itself around the first-ever DAO.<\/span><\/p>\n

Most investors nowadays are familiar with the concept of Decentralized Autonomous Organizations. The same was not true back in 2016. Back in the day, <\/span>The DAO<\/span><\/a> was launched and quickly grew to be the \u201cnext big thing\u201d. Similar to successful DAOs today, the project had thousands of contributors who invested their money to receive voting rights on multiple Ethereum projects. Being the first of its kind, The DAO opened the door to new automation concepts related to employment, investing, as well as voting.<\/span><\/p>\n

And then, suddenly, it got hacked. <\/span>Due to the project\u2019s vulnerabilities, hackers drained 3,6 million ETH tokens using a recursive function withdrawal<\/b>. The blow was so significant that Ethereum lost one-third of its value, damaging the project\u2019s security and reputation.\u00a0<\/span><\/p>\n

In their attempt to roll back the major issues created on the network, Ethereum developers cast a Hard Fork Proposal up for voting. The majority of investors agreed to the proposal and it was decided to migrate into a new token. Naturally, the Ethereum community followed the new chain, and the newly forked token became the Ethereum we all know today.<\/span><\/p>\n

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What is Ethereum Classic?<\/span><\/h2>\n

So, what is Ethereum Classic? In short, it is <\/span>the pre-forked Ethereum token that remained the same following the DAO hack<\/b>. It is not compatible with any upgrades of the later Ethereum version, as well as hard forks, which we discuss below. The old token, now known as ETC, was primarily adopted and promoted by idealists, meaning those who, above all, support decentralization.\u00a0<\/span><\/p>\n

Ethereum Classic has had a turbulent history. Its price has never reached that of Ethereum, and there have been several <\/span>51% attacks<\/span><\/a> on the chain. However, despite all that, it has managed to survive and has experienced several growth phases. That said, the sentiment has always favored Ethereum over its predecessor, mainly due to community support and value.<\/span><\/p>\n

Both Ethereum and Ethereum Classic can be obtained by most cryptocurrency exchanges, including Paybis.<\/span><\/p>\n

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The Merge & the ETHW fork<\/span><\/h2>\n

Ethereum <\/span>recently shifted<\/span><\/a> to a PoS consensus mechanism in an upgrade primarily known as the Merge, or ETH 2.0. Merging into a Proof of Stake blockchain reduced the energy consumption of the chain by 99%. This made it no longer possible to mine Ethereum, forcing miners to look for an alternative solution.<\/span><\/p>\n

Chandler Guo<\/span><\/a>, a prominent Chinese Angel investor, decided to tackle the issue by forking Ethereum and maintaining the original PoW mechanism. The new token is known as EthereumPoW (ETHW) and is a direct competitor to Ethereum Classic due to its similarities.<\/span><\/p>\n

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Chandler #Guo<\/a> revealed that in just four days following The Merge, the #ETH<\/a> proof-of-work chain “already has two DEXs, two bridges and two NFT exchanges” already launched. #hardfork<\/a> https:\/\/t.co\/3lAVHfjL1h<\/a><\/p>\n

\u2014 Bitcoin News (@BTCTN) September 23, 2022<\/a><\/p><\/blockquote>\n