Why are there two Ethereum (ETH) and what are the differences between ETH and ETC?

Ethereum (ETH) and Ethereum Classic (ETC). The names of these two projects are so similar that a neophyte might think they are the same. Basically, they are (almost) identical! However, there are fundamental differences between these two projects. Why then do they have ‘Ethereum’ in common? Why are there two Ethereums? In this content, we invite you to discover the answers to these questions.

Why are there two Ethereums?

Everyone knows Ethereum (ETH), but the number of people who know Ethereum Classic (ETC) is a little lower. And for good reason, the second mentioned does not benefit from the same influence as the first. Moreover, it is only a derivative of it. Say like that, the idea seems incomprehensible. But it only takes a dive into the history of Ethereum (ETH) to understand it all.

Le but d’Ether (ETH)

Ethereum (ETH) is a blockchain particular launched years ago to create competition against Bitcoin (BTC). The genius behind this blockchain? Vitalik Buterin. The computer scientist had taken the time to probe the Bitcoin blockchain (BTC) in all its seams and in all its forms. It was then that he detected what appeared to be shortcomings.

Mr. Buterin then embarked on the design of the blockchain Ethereum (ETH) with the aim of making the impossible possible. He wants to give the possibility to all users to create applications decentralized through contracts called “smart contracts”.

The solution is innovative and, as soon as it is deployed, it interests thousands of companies. From that moment on, the Ethereum blockchain (ETH) imposed itself in the cryptocurrency sphere. However, a curious event takes place a few years later …

The creation of the DAO

After the launch of the smart contract solution, there was the creation of the DAO or Decentralized Autonomous Organization. The purpose of DAO is to allow each user to design an Ethereum Pool (ETH) and freely decide which project they want to invest in. Several users can decide to invest collectively.

The idea of ​​DAO meets with considerable success with enthusiasts of cryptomonnaies. For its realization, however, it is necessary to raise funds. In a few days, the goal was quickly reached, because the project raised 11.5 million Ethers (ETH), or $ 150 million. The DAO project becomes one of the most impressive in cryptocurrency history to date.

Unfortunately, an event comes to splash the beauty of the project. Hackers – we still do not know their identity, and we do not know if it was a group or a single person – manage to find loopholes in the code of the blockchain. They take the opportunity to withdraw the equivalent of $ 50 million. The fact is not trivial and will have repercussions, even years later.

The origin of Ethereum Classic (ETC)

Due to the Ethereum Network (ETH) hack, Vitalik Buterin recommends making a code change. The purpose of this provision is to fill the loophole to prevent new hackers from operating. This is the concept of hard fork. Except that not everyone agrees. Two camps are formed: the supporters of hard fork and non-partisans.

For the first, the idea is simple: the modification of the code proves to be saving, because it will make it possible to make the network inviolable. Many people side with this camp. But the problem is, making a change to the blockchain to make it tamper-proof amounts to “violating” it. In other words, for the modification to be possible, the code must be modified!

Non-hard fork supporters understand this idea and oppose the project. According to them, no changes should be made to the blockchain. On the site Ethereumclassic.github.io, they explain their motivations. “Ethereum is the world’s computer and no one should be able to shut it down, control it or censor it. Smart contracts must be irreversible. A hard fork is only possible to correct bugs realities of the platform ”.

Which side would win the round? The hard fork pros or the hard fork antis? Everything was decided on July 20, 2016 by a vote won at 89% by the first. With this overwhelming majority, Vitalik Buterin’s project prevails and the DAO is dismantled so that the lost funds are returned to the victims of the hacker.

the weather The tension that arises from this situation leads to the division of the blockchain. The new channel – it recorded the hack and the return of funds – kept the name Ethereum (ETH). As for the second, the original channel, which recorded the disappearance of the funds, it kept the word “Ethereum”, adding “Classic” to it. Hence the Ethereum Classic (ETC).

Ethereum (ETH) et Ethereum Classic (ETC) : les similitudes

If there is a tendency to believe that the two projects are identical, it is not only because of the word “Ethereum”, but also because of the objectives and characteristics.

From an objective point of view, it should be noted that both projects aim to develop a large decentralized blockchain platform. In addition, they want to offer users the possibility of executing smart contracts without the presence of third parties and without fraud.

As for the characteristics, the two projects are identical with regard to the size of the blocks. In addition, the average block creation time is the same. And finally, the rewards granted to minors for their participation are also the same.

Why is there so much in common between ETH and ETC? This is because a lot of the code ends up on both projects. However, this does not mean that there is an absence of points of difference. Let’s find out now!

Ethereum (ETH) and Ethereum Classic (ETC): the differences

The differences between the two projects are not minimal. On the contrary, it is necessary to understand them well in order to make an intelligent choice. matter investment.

To begin with, it should be noted that Ethereum Classic (ETC) is based on an algorithm Proof of Work (PoW). Conversely, Ethereum (ETH) is based on a system Proof of Stake (PoS) since the launch of the hard fork London EIP-1559.

Then Ethereum Classic (ETC) has a cap ofemission of tokens between 210 and 230 million. On the other hand, Ethereum (ETH) does not have a predefined emission cap. Added to this is the fact that ETC does not enjoy the same popularity as ETH.

Finally, another difference can be found in the market capitalization. In the case of Ethereum Classic (ETC), it stands at $ 600,788,003. On the other hand, with Ethereum (ETH), the market cap is $ 41,801,443,830.

Ethereum (ETH) and Ethereum Classic (ETC) have almost identical names, but they are not the same. Admittedly, there are many points in common between the two projects, but they are not necessarily similar. ETC was born as a result of a division at the Ethereum (ETH) community level. And the division intervened after a hacker managed to hack $ 50 million on the initial blockchain.