Since the beginning of 2017, there has been a lot of talk about the impending merger between two cryptocurrencies, Ethereum, ETC. Analysts are looking into the implications for both currencies, including their prospects. Another cryptocurrency that is attracting attention from traders is Ethereum Classic (ETC).
Ethereum and Ethereum Classic aim to develop smart contracts and decentralized applications (DApps). However, their approaches differ significantly. For example, Ethereum uses a public ledger called the “blockchain,” whereas Ethereum Classic uses its version of the blockchain. They also use different ways of conducting transactions, modifying transaction records, and limiting coin production.
What is Ethereum Classic?
The creation of Ethereum classic occurred as an offshoot of Ethereum’s blockchain, established in 2014. Although there have been changes to the current Ethereum chain since then, it remains one of the most popular cryptocurrency choices.
Today, Ethereum Classic (ETC) is incompatible with any Ethereum (ETH) upgrades, such as hard fork changes. Its ticker symbol, ETC, identifies the coin. Ethereum Classic focuses on an open platform where people can write code without altering transaction history. It runs on smart contracts and generates Ether under the ETC currency name.
This design allows people to view different transactions made on the blockchain without revealing their identities. Ethereum and Ethereum Classic (Ethereum Classic) are two versions – one before and one after a fork.
After the $50MDAO hack, Ethereum‘s blockchain technology has advanced. However, ETC’S backers chose the same old blockchain technology (ETH). ETC was a 2016-year fork.
Those responsible for creating Ethereum decided not to upgrade their software after the DAO hack. They then created an alternative called Ethereum Classic.
There are significant differences in terms of functionality between Ethereum and Ethereum Classic platforms. The Ethereum network encourages immutability, which means no one can alter any transaction made on the blockchain. On the other hand, Ethereum Classic uses the original Ethereum blockchain, which enables users to modify previous blocks of the chain.
Ethereum Classic uses a proof-of-work (PoW) consensus algorithm to validate transactions. These miners receive ether rewards for doing so.
New Proof-of-Stake (PoS) consensus algorithm has been implemented for the Ethereum network. Those who verify transactions contribute their stakes to the mining processes. If selected, they earn the right to create a new blockchain branch.
You can create as many tokens as you need with Ethereum. There is a limit of a 4.5% annual increase for each token. In its existence, ETC is limited to 230 million tokens.
As of September 2021, Ethereum is valued at $3,400 per ETH and has an estimated $400 billion. It ranks second among cryptocurrencies in terms of overall size. In contrast, ETC has an estimated worth of less than $10 billion, with an average price of $54 per token.
Many people question whether Ethereum is a currency or not, but Ethereum Classic maintains its predecessor’s original standard.
Ethereum Classic and Ethereum share similar characteristics.
As far as they differ, Ethereum Classic and Ethereum are decentralized platforms without a central governing body. They use many instances (nodes) of the software to run their blockchains.
Smart contract technology ensures the safety and security of an online marketplace by mandating that participants follow certain rules.
Transactions using Ethereum Classic or Ethereum do not allow for alteration, but they remain pseudonymous. Public key addresses will remain open, but the identity of the sender and receiver will not appear. This decision makes transactions anonymous.
The Ethereum Classic (ETC), which has a fixed supply, costs so much less than Ethereum (ETH) because it doesn’t have an unlimited supply.
ETC focuses on the idea of “codes as law” so that no one has the power to stop blockchain transactions or censor them. It’s a platform that lets people create smart contract applications which don’t need anyone else involved. Decentralized governance means that transactions can occur without involving any third parties.
Ethereum has continued to reign supreme over Ethereum classic regarding purchasing, selling, or creating nonfungible tokens (NFTs). It doesn’t necessarily mean that ETC is done for; however, ETH will most likely be the more popular and trustworthy cryptocurrency in the future.
What happens when you merge two coins?
The merge will combine the Ethereum network’s 10th mainnet, Shadow forked from the original chain, with the new Beacon Chain to address the three major challenges facing blockchains today: Scalable networks that can handle large amounts of transactions per second without compromising security; decentralized systems that aren’t controlled by any single entity; and platforms that offer both privacy and transparency.
In 2016, the Ethereum Classic (ETC) community split into groups: those who wanted to maintain the original protocol and those who wanted to create an entirely new one. The latter group called themselves “Ethereum Classic Labs” and began developing a new version of the Ethereum protocol they believed would solve the security issues plaguing the original Ethereum chain. They also created a new currency, Ether Classic (ETC), which could only be mined through the new version of the protocol.
Even though there has been some buzz about Ethereum 2.0, it won’t change anything for most people.
The final version of the merge.eth project will utilize proof-of-stake consensus; therefore, existing Ethereum mining hardware will need to be converted to Ethash for the merge.eth network.
There is no guarantee that the ETH/ETC merger will increase the value of either currency. However, both currencies’ values may rise due to the increasing number of people interested in investing in the ETH platform.