Ethereum and Ethereum classic are two terms that are doing rounds like never before. All this has led to a confusion among the investors as to whether they both are one and the same or is there anything that differentiates the two. Well, to get things straight – Ethereum and Ethereum classic are two different terms altogether. Though they are similar to a convincing extent, they still are different. One cannot deny the fact that there there was a time when only one Ethereum ecosystem existed. However, with major significant events unfolding in the cryptocurrency history, we are now left with two different versions of the blockchain network.
What is interesting enough to catch everyone’s attention is the manner in which Ethereum classic came into existence. Surprisingly, Ethereum Classic was born out of a contentious 2016 debate after a malicious hacker stole $60 million worth of ether. If you are here to know what exactly is the difference between Ethereum and Ethereum classic or the reason why is there a lot of buzz with regards to Ethereum classic, then you are at the right place. Keep reading to learn more!
Ethereum classic is a result of the Decentralized Autonomous Organization (DAO) hack. The DAO was a project launched on the Ethereum blockchain in 2016 and was operated liked a venture-capital fund for the cryptocurrency space. Talking about DAO, it is that investors’ funds which could be pooled together with Ethereum-based DAO tokens. Post this, what people can do is submit and pitch their ideas to the Ethereum community. On the proposal’s approval, the DAO automatically transfers Ether to the smart contract that represents the proposal. A flaw in the blockchain code made it easier for the attackers to withdraw $50 million. It was later concluded that the Ethereum blockchain has to be altered to revert the attack and get the funds back.
As far as Ethereum is concerned, its blockchain allows decentralized apps to be built on top of the blockchain through self-executing contracts–also known as smart contracts.
No wonder Ethereum Classic offers smart contracts as with the Ethereum network. However, what is worth a mention is the fact that it has struggled to gain the same popularity as Ethereum. Though, today, the picture seems to have improved, there are certainly a few things missing which have hindered its long-term growth. Out of these, a few of them are vision, support and the vast developer support that the standard Ethereum enjoys. Also, how can one go about without talking about the series of attacks on this network. All this has resulted in the investors losing confidence in it. On the contrary, Ethereum as an investment has always been one among the favourites of the investors. Even if there is a slight dip in the price of this cryptocurrency, it’s ability to bounce back to normal and surge higher has been one of the biggest reasons as to why the number of investors in Ethereum has always seen an upward trend.
On the brighter side, considering the potential that Ethereum classic has, a lot of investors are already inclined towards it. What can be a driving force behind increasing investors in Ethereum classic is adopting certain measures like that of scaling the transaction limit in order to eliminate the threat of future attacks.
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