3 Min Read | June 17, 2021
Did you know that in the cryptocurrency market, there are two cryptocurrencies with not only similar names but have a shared and twisted history?
Wondering which are these two cryptocurrencies?
Well, for those who are unaware, Ethereum Classic and Ethereum both exist in the cryptocurrency market.
But, are these two rivals?
Do they have a divided community or users?
Dear Convey Warriors, like always we are going to enlighten you with the twisted tale of how the Ethereum Classic was born and how it differs from Ethereum.
Let us dive right in!
What is Ethereum Classic & How It Came Into Existence?
Before we arrive at the technical definition of Ethereum Classic and Ethererum, you need to know a short story to trace their birth and why led to their rivalry.
In 2013, Vitalik Buterin came up with the idea to bring about some changes in the already existing Bitcoin blockchain. He suggested adding such a programming language in Bitcoin that would help in curating any kind of application on the top of its blockchain. Unfortunately, his pitch could not convince the Bitcoin community.
But, Vitalik Buterin did not give up, rather went on to raise funds and created a new blockchain altogether. The fundraising was a great success and in total, more than 25,000 Bitcoin were invested for the Vitalik project (creation of new blockchain). This was how the foundation of Ethereum was laid on July 30, 2015. As time passed the Ethereum blockchain kept updating and things were going smoothly until 2016.
Steps in DAO and it caused mayhem!
The Problematic DAO
Are you new to this term DAO? Don’t worry, we have got you covered!
DAO or Decentralized Autonomous Organization was a platform where investors or entrepreneurs could not only pitch their project ideas but raise funds for the same. DAO operated as a decentralized platform that used Ethereum blockchain technology.
So, anyone who wanted to donate or push a particular project idea could give his/her votes using tokens (Ether). Finally, the projects that received the support of more than 20% of Ethereum’s community were given funds from DAO for project execution.
But, there was a loophole in this decentralized investment platform!
This loophole was termed as ‘Split Function’ under which the investors had the flexibility to withdraw their vote from a particular project if they were returned their Ether. There was a catch, the returned Ether was inaccessible for 28 days and the public ledger would get updated in that time duration.
Well, hackers found a loophole in the process and there was a gap of 28 days. Basically, in the DAO network, the same tokens were returned to the investor who took his/her vote back from a particular project and the transaction was not recorded on the public ledge immediately. On the other hand, although the investor would get his/her tokens back but could not access them for 28 days.
This meant that the tokens were vulnerable for some time and it gave enough space for the hackers to exploit the funds of DAO. This is what happened in June 2017 and 11.5 million Ether (worth $50 million at that time) were stolen.
The Birth of Ethereum Classic
After the hacking incident, the Ethereum community got alarmed and proposed certain changes in the original Ethereum blockchain to avoid any theft in future. But, some people in the Ethereum community were against the decision of changing the original code of the Ethereum blockchain.
This is how the seed of rivalry was sowed.
To arrive at a final conclusion, voting was conducted and 87% of the community voted for changing the original code of the Ethereum blockchain to bring about protection. But, 5.5% of the community wanted to stick to the original blockchain.
Following the wishes of the majority, changes were implemented in the original Ethereum blockchain!
So, the changed or new blockchain came to be known as Ethereum, represented with the symbol ETH. Whereas, the unchanged or original blockchain came to be known as Ethereum Classic, represented by symbol ETC.
So, this was how two cryptocurrencies with similar names were born. This brings us to the next part of the blog, which is how Ethereum Classic is different from Ethereum!
To find out, continue with the reading! But before that let's crunch some data first
Ethereum vs Ethereum Classic
Apart from their representative symbols and logo, Ethereum and Ethereum Classic have other differences which are outlined in the table below.
Given the ongoing trend and craze of cryptocurrencies, many of you must have queries like, ‘is Ethereum Classic a good investment’, ‘is Ethereum better than Ethereum Classic?’
Well, as far as investment in either of two cryptocurrencies totally depends on your investment needs. But, it is recommended to analyze the price history of Ethereum and Ethereum Classic before investing in one of these.
This is it in this blog but Convey. in has much more interesting content that can satisfy your appetite for financial awareness.
So, keep reading and keep investing!
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