IQeon ABC: what's the difference between Ethereum and Ethereum Classic?

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23.09.2021
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Ethereum vs Ethereum Classic

Dear friends, we continue "IQeon ABC" section, where our team explains complex concepts from the world of digital assets in simple words. Today we will talk about Ethereum and Ethereum Classic.

Initially, Ethereum was a joint blockchain platform for the development of decentralized applications of varied complexity, functioning with the help of smart contracts. Smart contacts got their name due to the fact that control over compliance with the terms of the contract took place automatically. The rules were already written into the program code, and the execution algorithm depended on the behavior of the parties.

Many applications were deployed on the basis of Ethereum, including a solution to deploy the DAO investment fund in the system, a hacker attack on which became a key event within the united platform. The bone of contention was the fact that the first part of the team planned to change the settings, return the withdrawn funds to the owner using smart contract technology. And the second part of the participants refused to make any changes to the code.

Thus, two blockchains Ethereum and Ethereum Classic appeared.

Let’s see their similarities and differences.

Ethereum and Ethereum Classic Similarities:

  1. Both platforms are blockchains with the ability to develop decentralized applications (DApps) based on smart contracts.
  2. Both are called EVM or Ethereum virtual machines.
  3. Both platforms have their own cryptocurrency operating within the network.
  4. Both systems have similar terminology.

Differences:

  1. Attitude towards changes: Ethereum Classic does not allow any changes in the system, while Ethereum, on the contrary, treats them positively if most of the team accept them.
  2. Responsibility for making decisions: within Ethereum Classic - these are 3 development teams with the participation of the community, within Ethereum - it is the Ethereum Foundation with the help of the community.
  3. Compatibility. Ethereum Classic's priority is the creation of more secure contracts, while the main principle of Ethereum is maximum openness.
  4. In the Ethereum version, blocks are filled when reaching 500,000 transactions per day, the block volume in the Classic version is much larger and currently has a lot of free space.
  5. Monetary policy. Ethereum plans a steady growth in the volume of emission with annual inflation of 3% for life, at the same time Ethereum Classic assumes a similar inflation until 2025 with a total supply of about 200 million ETC.

Of course, it is worth mentioning the differences in the popularity of the coins of the two platforms. While both Ethereum and Ethereum Classic are in demand, analysts are talking about Ethereum's larger volumes of Ethereum market capitalization, average daily trading volume, maximum value at the peak, more active community and developers, and developers compared to Ethereum Classic.

However, the classic version of the blockchain is also trusted due to the smaller range of exchange rate fluctuations and the desire for stability.

Now you know that similar terms can have their own essence.

Join the official IQeon community! Many interesting articles are planned, in which everyone will find something useful!

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