Guide to Ethereum Vs Ethereum Classic Vs Ethereum 2.0
Bitcoin is the first cryptocurrency to be introduced in the crypto space. Following Bitcoin, Ethereum was created, which is not just a cryptocurrency that has topped the charts and impressed people but also a decentralized blockchain platform that focuses on technology and allows developers around the world to create and develop decentralized applications (DApps).
Ethereum Classic or ETC is the open-source blockchain network harnessing the power of distributed computing featuring smart contract functionality. Ethereum Classic is a cryptocurrency that trades on digital currency exchanges under the symbol ETC. Ether is generated as a reward for network nodes participating in the “mining” process, which validates calculations done on Ethereum Classic’s EVM.
Ethereum 2.0 is an improved version of Ethereum. It’s an upgrade for the underlying Ethereum Blockchain network for improved functionality. The upgrade was set to be launched in the 3 phases starting from December 1, 2020.
Let’s learn the key differences between Ethereum, Ethereum Classic, and Ethereum 2.0, including the concept, Blockchain Technology, and the future of ETH, ETC, and ETH 2.0.
What is Ethereum?
The second-largest cryptocurrency after Bitcoin is Ethereum. However, Ethereum is planned to be more than just a medium of trade and a store of value than Bitcoin or most other virtual currency.
Vitalik Buterin and a group of developers are the creators of the Ethereum blockchain. The prime idea behind the development of Ethereum is to provide a platform that allows developers and programmers to create and execute smart contracts using the blockchain.
Ethereum is the most widely used blockchain-based platform in the world to create decentralized apps (DApps) supported by smart contracts. A smart contract is a code for automating action, such as the transfer of funds automatically when specific conditions have been fulfilled.
Eventually, ETH’s ability to enable developers to write a smart code that is digitally valuable and runs exactly as programmed, makes it distinct from the rest.
What is Ethereum Classic?
Ethereum Classic was created in 2016 as a result of a network hack. The original Ethereum blockchain was split in two, with Ethereum Classic being the older blockchain and Ethereum being the newer one. Ethereum Classic makes use of smart contracts within a distributed ledger or blockchain network to provide decentralized governance.
The Ethereum blockchain was initially established as a single network in which transactions were facilitated by the cryptocurrency ether of ETH. However, the blockchain was hacked in June 2016, and $50 million in funds were stolen.
As a result, the network was split or hard forked in order to secure it. Ethereum Classic arose as a splintered version of Ethereum’s blockchain, with the other being Ethereum itself. The split was done to return the stolen funds to their rightful owners, according to the records before the hack.
What is Ethereum 2.0?
Ethereum 2.0 known as “Serenity,” will soon be moving away from proof of work (PoW) to proof-of-Stake (PoS) algorithms – also employed by bitcoin (PoS) in order to increase Ethereum scalability, speed, and effectiveness. The improved version is meant to boost the volume of transactions while still dealing with bottlenecks.
Ethereum 2.0 signals the move to the new “proof-of-stake” mechanism of consensus. The upgrade is anticipated to roll out in 2019 in 3 phases, but the first phase was launched on December 1, 2020. The complete release is not expected until 2022 due to the remaining two stages.
Let’s Compare the Key Features
The Concept of a blockchain smart contract platform has pioneered by Ethereum. Smart contract are computer programs that automatically carry the action necessary to fulfill an agreement between multiple parties on the internet.
In the beginning of 2020, ETH was priced at $125.63 and increased by nearly 500% by the end of the year to $729.65. In 2021, it came to $4,380, but since then it has gone from $1,700 to $2,500, showing jumps as well as drops by up to $1,000.
The primary distinguishing feature of Ethereum Classic is its incompatibility with ETH blockchain updates. The new chain (Ethereum), along with its users (nodes), is completely cut off from the original chain by implementing a new set of rules. As a result, the original chain (Ethereum Classic) is unable to access any updates occurring on the new chain (Ethereum).
Ethereum is considered the more real of the two networks and, given the security problems of Ethereum Classic, the future of Ethereum Classic seems less brilliant than Ethereum. Over the years, investors lost confidence in ETC because of system hacking. Unless its code and software can be revamped, Ethereum Classic may face challenges to prevent future breaches.
Ethereum 2.0 is known as ETH2 or Serenity is an upgrade to the Ethereum blockchain. The upgrade aims to improve the Ethereum network’s speed, efficiency, and scalability, allowing it to process more transactions and ease roadblocks.
After Bitcoin, Ethereum is one of the most popular blockchain today. Ethereum2.0 has introduced several revolutionary features that not even Bitcoin could match. Shards and Proof of Stake help to improve transaction speed and scalability, all of which are critical.
Difference between Ethereum, Ethereum Classic and Ethereum 2.0
|Criteria||Ethereum||Ethereum Classic||Ethereum 2.0|
|Created||It was founded in late 2013. At a conference later in January 2014, Ethereum's developer announced the launch.||It entered the scene after the DAO was hacked, with hackers stealing $50 million, in May’ 2016.||After originally expected for 2019, Ethereum 2.0 launched the first phase on December 1, 2020. The complete release is not expected until 2022 due to the remaining two stages.|
|Blockchain Technology||ETH is now run on a more evolved technology.||ETC follow the same old blockchain Technology||ETH 2.0 is an improved upgrade to the existing Ethereum blockchain.|
|Security||Ethereum's smart contracts are incredibly flexible, with the potential to handle big amounts of tokens and with unchanging logic based on smart contract code that has been used previously.||As Ethereum Classic prioritizes blockchain integrity over scalability and performance, as well as global trust minimization, its architecture revolves around the most secure components and concepts.||In the case of Ethereum 2.0, the whole setup is based on PoS networks which consists of small set of validators for more secure decentralized structure.|
What You Should Choose:
Despite the fact that both Ethereum and Ethereum Classic offer smart contracts and compete in the same market, Ethereum has grown in popularity as the more legitimate of the two networks. Furthermore, Ethereum’s ETH is the world’s second most popular cryptocurrency, trailing behind only Bitcoin.
The future of Ethereum Classic appears to be less promising than that of Ethereum, as Ethereum is regarded as the more legitimate of the two networks, especially given Ethereum Classic’s security concerns. Investors have lost faith in ETC over the years as a result of system hacks, and until ETC can redevelop its code and software to prevent future hacks, Ethereum Classic may face difficulties.
As a matter of fact, for Ethereum 2.0, it is under the first stage of development but investor can eye for future aspects.
Both networks have a clear and unique market positioning and can meet the different needs and usage of respective investors. However, these differences can also be exploited to make the solution even stronger and competitive and preserve each of them with its weaknesses and strengths.