Did you know that Ethereum classic came into existence after Ethereum’s smart contract operating system got hacked?
It can be difficult for new crypto investors to make sense of the most popular blockchain networks because so many of them exist. This is why people often choose to invest in cryptocurrencies that they don’t know a lot about.
The best way to increase the likelihood that you’ll get a good return on your investment is by informing yourself about key differences between the world’s most important cryptocurrencies such as Ethereum vs Ethereum classic.
To help you out, we’ve created a guide. Keep reading if you want to find out more.
Ethereum Guide: Understanding the Split
If you want to understand how Ethereum and Ethereum Classic are different, you first need to understand how Ethereum works.
Ethereum revolutionized the crypto industry when it came into existence. It was the first cryptocurrency that make it easy for people to create smart contracts. These contracts help people to make agreements on a blockchain network.
Ethereum became popular because people recognized how important it was to be able to create smart contracts.
It’s possible to create smart contracts to form DAOs. These are organizations that people can use to pool their money together. Participants will then cast votes to decide how to spend it.
Back in 2016, one of these groups raised more than one hundred and fifty million dollars in Ethereum.
But the blockchain’s code had security gaps. Hackers took advantage of this vulnerability by stealing more than sixty million dollars worth of Ethereum coins.
Ethereum’s developers took action to prevent this from happening again. They executed what is known as a “hard fork.” This means that they rolled back Ethereum’s ledger in order to return the stolen funds.
Some of Ethereum’s users did not agree with this action. Therefore, they chose to continue using Ethereum’s old programming. People started referring to this version of Ethereum as “Ethereum Classic.”
Ethereum vs Ethereum Classic Guide: Which Is Better?
Ethereum is much more popular than Ethereum Classic. But crypto prices are always changing. This is why you should stay up to date on the Ethereum price CAD before you choose to invest in Ethereum.
Ethereum Classic has not grown in popularity like Ethereum. Ethereum offers faster transaction speeds. People still choose to use Ethereum Classic because it uses a dependable proof-of-work system.
Ethereum will soon make the transition to start using a proof-of-stake system. This system will greatly reduce the amount of energy that the blockchain uses, which means that it will produce fewer greenhouse gas emissions.
Understanding the Differences
If you’ve been wondering about the similarities and differences between Ethereum vs Ethereum Classic, keep in mind that these two cryptocurrencies are closely related. However, Ethereum is much more popular than Ethereum Classic.
If you want to find out more about blockchain, don’t forget to check out other articles on our website.