Cryptocurrency ETH and ETC: similarities and differences
People who want to work with the second most popular cryptocurrency – Ethereum, are starting to delve into this topic and notice that there are two types of digital coins with this name. In addition to eth vs etc there is also in circulation. And, of course, it becomes interesting why there is such a division, what features each coin has, and which asset is better to work with for maximum profit. And to find out the answers to these questions, the topic should be considered more closely.
How different types of Ethereum cryptocurrency appeared
Before the advent of Ethereum Classic, there was only the Ethereum cryptocurrency. The platform was created to develop decentralized applications and other digital coins. This is where intelligent contracts came from. The project progressed well until the hacker attack, which resulted in the loss of 50 million dollars. The hacker used a weak spot in the DAO, a hedge fund open to finance decentralized applications created on the platform to gain access to money. People could invest here, choosing the applications they want to finance, and, if necessary, exit the fund, taking their capital.
After the incident with the theft of a vast amount of money, the platform’s creators began to look for the “weak point” of the project to think about how to fix it. The best solution was to fork. The Ethereum blockchain has completely stopped. In its place, a new cryptocurrency was created. It was named Ethereum. The old version that existed before was renamed Ethereum Classic.
Now we know how the two variants of cryptocurrency came about. It remains to find out how they are similar and differ to understand how relevant the exchange of eth vs etc, ethereum vs polygon or the conversion of assets in the opposite direction will be.
Similarities between ETH, ETC
If we talk about the general characteristics of ETH, ETC, the following points should be noted:
- Both platforms are blockchains that allow the creation of decentralized applications (DApps) based on smart contracts.
- Each of the platforms has its cryptocurrency used within the network.
- The systems use similar terminology.
As you can see, there are not as many common points as one might think. Next, we should talk about the distinctive features of the projects.
Differences between ETH and ETC
The difference between ETH and ETC is more significant than their similarity. Of the distinguishing features, the following should be highlighted:
- Ethereum Classic developers oppose any changes to the system. And the creators of Ethereum look at them positively if a large part of the team supports such changes;
- The work of Ethereum Classic is aimed at creating secure contracts, and the basic principle of Ethereum is maximum openness;
- In Ethereum, blocks are filled when reaching 500,000 transactions per day; the volume of blocks of the Classic option is much larger and still has a lot of free space;
- ETC cannot use Ethereum updates; for example, introduce the Proof of Stake principle instead of Proof of Work;
- The level of trust in ETH is higher than in ETC; plus, only about 10% of the project’s clients remain with the old coin; the rest have started using ETH;
- The ETC rate is more stable, and the cost of ETH is prone to changes, including active growth.
Now it is clear that it is better, of course, to work with Ethereum. In parallel, you can invest, for example, ethereum vs polygon. And finding a BTC exchanger, a service ready to provide the right amount of ETH or other digital coins, is not difficult. The main thing is to choose reliable performers, like LetsExchange. Then your transactions will be successful.