Difference Between Ethereum And Ethereum Classic? Why Did The Fork Happen? 2023

Difference Between Ethereum And Ethereum Classic? Why Did The Fork Happen?

Buy Bitcoin & Ethereum Safely with Netcoins Here

Table of Contents

Difference Between Ethereum And Ethereum Classic? Why Did The Fork Happen?

Keep up to date with Bitcoin on Bitcoin.org
Keep up to date with Ethereum news on Ethereum.org
Keep up to date with XRP news on XRP Twitter

Key Takeaway:

Understanding the Difference between Ethereum and Ethereum Classic: Ethereum and Ethereum Classic are two separate blockchain networks that originated from a single blockchain. Ethereum Classic is the original chain that remained after a contentious hard fork resulted in the creation of Ethereum. It is important to differentiate between the two to understand their distinct characteristics and ideologies.
Reasons for the Split: The split between Ethereum and Ethereum Classic occurred due to a disagreement in response to a major hack on an application built on the Ethereum blockchain. The community was divided on whether to perform a hard fork to reverse the hack and restore stolen funds or to maintain the immutability of the blockchain. This disagreement led to the creation of two separate chains with different visions.
Key Differences: Ethereum Classic and Ethereum have several notable differences. Ethereum Classic supports the principle of “code is law,” prioritizing immutability and decentralization. Ethereum, on the other hand, follows a more pragmatic approach, emphasizing flexibility and the ability to make changes if necessary. Additionally, Ethereum has a larger community and market capitalization compared to Ethereum Classic.

Introduction: Understanding the Difference between Ethereum and Ethereum Classic

The variance between Ethereum and Ethereum Classic stems from a fundamental difference in ideology and philosophy. Ethereum Classic emerged as a result of a contentious hard fork in 2016, following the infamous DAO attack. The introduction of Ethereum Classic showcased a resistance to the idea of modifying or altering previous transactions. This divergence in principles led to the creation of two separate and distinct blockchain networks. Ethereum Classic maintains a commitment to preserving the immutability of transactions, while Ethereum continues to explore greater flexibility and innovation within its network. These distinctions highlight the complex and ever-evolving landscape of blockchain technology and the divergent paths that can emerge within the same ecosystem.

Why the Need for the Split?

The split between Ethereum and Ethereum Classic arose due to fundamental differences in ideology and values within the Ethereum community. This division occurred as a result of a contentious hard fork in July 2016, following the infamous DAO hack.

The need for the split stemmed from contrasting perspectives on the immutability of blockchain transactions and the role of decentralized governance. Ethereum Classic proponents argued for preserving the inviolability of the blockchain, while Ethereum supporters believed in the importance of taking proactive measures to rectify the DAO hack.

This ideological rift led to the creation of two separate platforms, each with its own unique blockchain and community.

How Did the Split Occur?

The Ethereum-Classic split occurred due to a disagreement within the Ethereum community regarding the handling of the DAO hack. This resulted in two separate blockchains and two distinct cryptocurrencies.

Key Differences: Ethereum Classic and Ethereum

Ethereum Classic and Ethereum have several distinguishing factors that set them apart. To understand these distinctions, let’s delve into the key differences between the two cryptocurrencies.

First, let’s compare Ethereum Classic and Ethereum in a table format:

	Ethereum Classic	Ethereum
Fork	Resulted from a disagreement over the DAO hack, leading to the preservation of the original Ethereum blockchain.	Occurred as a response to the DAO hack, resulting in a new blockchain with alterations and improvements.
Community Perspective	Supported by a smaller community with a focus on immutability and the principles of decentralization.	Backed by a larger community embracing innovation and adaptability in pursuit of a better decentralized ecosystem.
Monetary Policy	Adheres to a deflationary monetary policy with a maximum supply cap of 210 million ETC.	Currently reliant on an inflationary monetary policy but transitioning to a deflationary model with a move to Ethereum 2.0.
Consensus Mechanism	Utilizes a Proof of Work (PoW) consensus mechanism called Ethash.	Transitioning from Proof of Work (PoW) to Proof of Stake (PoS) with the introduction of Ethereum 2.0.
Development Focus	Limited focus on significant updates and improvements to the platform.	Actively working on enhancing scalability, security, and sustainability through regular protocol upgrades.

Going beyond the table, one notable detail not covered earlier is the community’s perception of these cryptocurrencies. Ethereum Classic is supported by a smaller community that prioritizes immutability and upholding the original principles of decentralization. On the other hand, Ethereum has garnered a larger following due to its embrace of innovation and adaptability, seeking to create a more robust decentralized ecosystem.

Now, as we conclude, it’s important to acknowledge the significant developments and advancements happening within the Ethereum space. With regular protocol upgrades and the impending transition to Ethereum 2.0, it is crucial for individuals and businesses to stay informed and keep up with the ever-evolving landscape. Don’t miss out on the opportunities that Ethereum and its ecosystem present for the future of decentralized finance and applications. Stay connected and explore the possibilities!

Remember, understanding the key differences between Ethereum Classic and Ethereum is vital in navigating the various aspects of these cryptocurrencies, both present and future.

Concepts and Creation

Ethereum and Ethereum Classic are two separate cryptocurrencies that originated from the same source code. The concept and creation of these digital assets can be understood by following this four-step guide:

Conceptualization: The idea behind Ethereum and Ethereum Classic is to create a decentralized platform for running smart contracts. These smart contracts are self-executing agreements with predefined terms, allowing for trustless and transparent transactions.
Development: The development of Ethereum and Ethereum Classic involved building a blockchain network capable of supporting smart contracts. This required implementing features like a virtual machine, programming language, and consensus mechanism to ensure the reliability and security of the platform.
Deployment: After the development phase, Ethereum and Ethereum Classic were launched as open-source projects. Developers and users could access the platform, write and deploy their own smart contracts, and participate in the network by validating transactions or mining new blocks.
Forking: The split between Ethereum and Ethereum Classic occurred due to a controversial decision regarding the handling of a high-profile hack. This resulted in a hard fork, where the Ethereum blockchain diverged into two separate branches. Ethereum followed the majority consensus and implemented a change to undo the hack, while Ethereum Classic maintained the original blockchain without such alterations.

While these steps provide a basic understanding of concepts and creation, it’s important to note that Ethereum and Ethereum Classic have evolved significantly since their inception, with ongoing development and upgrades shaping their respective ecosystems.

Transactions and Speed

Blockchain technology has revolutionized the way transactions are conducted, and both Ethereum and Ethereum Classic have their own unique approaches to managing transactions and speed. Here are three key points to understand about their respective systems:

Flexibility in Transactions: Both Ethereum and Ethereum Classic support smart contracts, which facilitate secure and automated transactions. However, Ethereum offers more flexibility in terms of transaction types and functionalities. Its robust ecosystem allows for the creation of decentralized applications (dApps) and the execution of complex transactions, making it suitable for a wide range of industries.
Transaction Speed: Ethereum and Ethereum Classic differ in transaction speed due to their consensus mechanisms. Ethereum currently uses a proof-of-work (PoW) algorithm, which requires miners to solve complex mathematical puzzles to validate transactions. This process can sometimes result in slower transaction speeds, especially during times of high network activity. On the other hand, Ethereum Classic also employs a PoW algorithm but with a simpler difficulty adjustment mechanism, resulting in generally faster transaction confirmations.
Fork Impact: The fork between Ethereum and Ethereum Classic occurred as a result of a disagreement within the community regarding the handling of a high-profile hacking incident. This led to the creation of two separate blockchains, each with its own set of supporters and developers. While Ethereum continued with its blockchain, Ethereum Classic maintained the original chain with a belief in preserving the immutability and decentralization principles of blockchain technology.

These unique details shed light on the nuanced differences between Ethereum and Ethereum Classic, particularly in terms of their approaches to managing transactions and speed. It is important to note that the choice between these platforms ultimately depends on the specific requirements and priorities of individuals and organizations in the blockchain space.

A true fact about Ethereum and Ethereum Classic is that the fork between the two occurred in July 2016, with Ethereum continuing as the dominant blockchain and Ethereum Classic emerging as a minority chain. (Source: “Difference between Ethereum and Ethereum Classic? Why did the fork happen?”)

Total Ethereum Supply

The amount of Ethereum in circulation is known as the Total Ethereum Supply. This supply is constantly changing due to various factors such as mining rewards and token burns.

To provide a visual representation of the Total Ethereum Supply, we can create a table that showcases the current numbers. Here is the breakdown:

In addition to the table, it’s important to note that the Total Ethereum Supply is influenced by other unique factors. These include the adoption rate of Ethereum as well as any future upgrades or protocol changes that may affect the supply.

Understanding the current Total Ethereum Supply is crucial for investors and enthusiasts alike. With the potential for growth and innovation in the Ethereum ecosystem, staying informed about the supply can help individuals make informed decisions and not miss out on opportunities.

Five Facts About the Difference between Ethereum and Ethereum Classic? Why did the fork happen?

✅ Ethereum Classic (ETC) was the original form of Ethereum, but a fork resulted in the creation of Ethereum (ETH). (Source: Team Research)
✅ The split between Ethereum and Ethereum Classic occurred due to disagreements within the Ethereum community. (Source: Team Research)
✅ Ethereum (ETH) is at the center of Decentralized Finance (DeFi) and smart contracts, while Ethereum Classic (ETC) has fewer use cases. (Source: Team Research)
✅ Ethereum Classic (ETC) has been targeted by 51% attacks in the crypto space. (Source: Team Research)
✅ Ethereum (ETH) has a larger developer ecosystem and community support compared to Ethereum Classic (ETC). (Source: Team Research)

FAQs about Difference Between Ethereum And Ethereum Classic? Why Did The Fork Happen?

What is the difference between Ethereum and Ethereum Classic?

Ethereum and Ethereum Classic are two distinct forms of the original Ethereum blockchain. While they were created using the same code, they differ in terms of developer ecosystem and community support. Ethereum (ETH) is at the forefront of Decentralized Finance (DeFi) and smart contracts, while Ethereum Classic (ETC) has fewer use cases and has unfortunately been targeted by 51% attacks.

Why did the Ethereum and Ethereum Classic split occur?

The split between Ethereum and Ethereum Classic happened due to disagreements within the Ethereum community. The original Ethereum blockchain had issues related to Decentralized Autonomous Organizations (DAO) and subsequent hacks, leading to the loss of a significant amount of ETH. To prevent the ecosystem from collapsing completely, a mutual agreement was reached to fork the Ethereum blockchain, resulting in the creation of Ethereum Classic.

What led to the need for the Ethereum fork and creation of Ethereum Classic?

The need for the Ethereum fork arose from the major problem with DAO and related hacks that cost crypto users a significant amount of money in lost ETH. The fork was necessary to address these issues and improve the security and stability of the Ethereum ecosystem. The newly forked blockchain became known as Ethereum, while the original blockchain was renamed Ethereum Classic.

Who initiated the Ethereum fork and voted in favor of it?

Vitalik Buterin, the creator of Ethereum, initiated and voted in favor of the Ethereum fork. The decision to fork the blockchain was made to prevent a potential collapse of the ecosystem and a significant dip in the Ethereum price. This move allowed for necessary improvements and developments in the Ethereum network.

What are some key differences between Ethereum and Ethereum Classic?

While the code for Ethereum and Ethereum Classic is identical, several differences have emerged over time. The most prominent difference is in terms of their speculative value and adoption. Ethereum (ETH) has seen widespread adoption, becoming the center of DeFi, smart contracts, and the development of various projects. In contrast, Ethereum Classic (ETC) has received less support and interest from the community, resulting in fewer use cases and development activities.

How do Ethereum and Ethereum Classic differ in terms of transaction speed and scalability?

Both Ethereum and Ethereum Classic can handle around 12–15 transactions per second. The speed of a transaction in both networks depends on the amount of ETH gas fees paid. The upcoming ETH 2.0 update for the Ethereum blockchain aims to enhance transaction speed and scalability by allowing for more transactions per second. This update will provide better opportunities for Ethereum developers to improve the network’s performance.

Where to buy cryptocurrency in Canada and US?

Netcoins is your ultimate choice for buying and selling cryptocurrency in the USA and Canada. Our platform places a strong emphasis on safety and regulation, ensuring your transactions are secure and compliant with legal standards. Unlike other platforms, we prioritize your peace of mind, providing an environment where your investments are safeguarded. Don’t just take our word for it – our top-notch customer service is highly lauded by users, as evidenced by our excellent ratings on Trustpilot and Google reviews. With Netcoins, you’re not just getting a platform, but a partner committed to providing a superior and secure cryptocurrency trading experience.

Buy Bitcoin In Canada	Buy Bitcoin in USA
Buy Ethereum in Canada	Buy Ethereum in USA
Buy Cardano in Canada	Buy Cardano in USA
Buy XRP in Canada	Buy USDC in USA
Buy Dogecoin in Canada	Buy Dogecoin in USA

Netcoins User Testimonials

    
 
 
        
   Clint U 
 2023-01-30
 
 
  Netcoins goes the extra mile to make sure their customers are as safe as possible against scams and bad actors.
I work in the crypto space, and couldn't recommend them enough for a custodial exchange and as a fiat on and offboarding option.
  
 
       
   Natalie Tavangari 
 2023-01-20
 
 
  Amazing service! Easy to use system for people like myself that is not that great with technology! All the staff at Netcoins are always so helpful they have a contact number so any issue I had they answer the phone quick also quick to respond to emails. This is probably the safest network to use as they go over and beyond to make sure there system is kept safe! Thank you Netcoins!
  
 
       
   Martin Mobile 
 2022-12-31
 
 
  With all the stress of the holidays while in a rush I transfered over 600$ US to Netcoins from another platform. Its usually a very simple transaction witch Ive done several times.  This time I send it to the wrong wallet ,it seemed as if I lost my transfer into the Blockchain.
Thanks to Justin customer service representative at Netcoins I was able to get back the full amount with in 24 hours .  Netcoins, thank you for the great service and saving my money .
  
 
       
   Harim Nam 
 2022-11-08
 
 
  Very responsive customer service. App itself still can use lot of work but covers basics. After security verification, best exchange for fiat-crypto on/off ramp so far imo.
  
 
       
   Yvonne St-Louis 
 2022-11-07
 
 
  A trustworthy experience! What made my experience great is the following. When I did the interac transfer to send money to my Netcoins wallet I forget to put my Netcoins account number is the note. Then it dawned on me to write Netcoins and ask how long the transfer takes. The support team quickly handled my request within minutes after having sent in an email to their zen desk for support. What made it absolutely trustworthy is my email for etransfers is different than the email for my account with Netcoins. The security measure that were taken to make sure it was I, holder of these two emails, was remarkable. This issue was quickly resolved with back and forth emails until the funds they deposited my funds to my Netcoins wallet. A trustworthy experience that I appreciate. It showed me how Netcoins really takes good care of their clients. Yvonne
  
 
       
   Newman Obossou 
 2022-10-05
 
 
  Thank you very much for creating Netcoins as it is very simple and essential in my life now. I plan to be a customer of yours for as long as possible as long as everything works as it did when I used it and the transactions and uses are smooth.

A big thank you for your work, satisfied customer.
  
 
       
   Saeed Eghbal 
 2022-09-28
 
 
  Very good customer support and super fast. I hate running in to any issues but when I do, with Netcoins it's a pleasure dealing with their support team. They make it so easy and did I say super friendly too? Thank you Netcoins.
  
 
       
   Ian Davenport 
 2022-07-28
 
 
  Although I very rarely leave reviews good/bad this one I felt needed too!  I have found previously applying to sites frustrating especially when you get into verification processes etc.  so several times today I called to verify because "big surprise" I was uncertain of a certain task that needed to be completed and I  didn't want to make a mistake and hold my verification up . Customer service was probably the best I have ever encountered , knowledgeable, prompt, friendly and just overall really helpful ; no bouncing you from dept. to another dept. no endless prompts" for this problem press 1" all the way thru to "for this problem press 9" , no "were experiencing higher than usual calls your expected wait time is 90 minutes".  I'm new to crypto; but knowing that the help I received today is less than 5 minutes away if needed , made this experience awesome .

Written by: John Pawlak

Cryptocurrency expert, content marketing at Netcoins.

John has been mining cryptocurrency as a hobby since 2015, from securing thousands of dogecoin, to minting NFT’s, John has been in the thick of cryptocurrency for many years.

Twitter
LinkedIn

Disclaimer

The information provided in the blog posts on this platform is for educational purposes only. It is not intended to be financial advice or a recommendation to buy, sell, or hold any cryptocurrency. Always do your own research and consult with a professional financial advisor before making any investment decisions.

Cryptocurrency investments carry a high degree of risk, including the risk of total loss. The blog posts on this platform are not investment advice and do not guarantee any returns. Any action you take based on the information on our platform is strictly at your own risk.

The content of our blog posts reflects the authors’ opinions based on their personal experiences and research. However, the rapidly changing and volatile nature of the cryptocurrency market means that the information and opinions presented may quickly become outdated or irrelevant. Always verify the current state of the market before making any decisions.