Ethereum Changing Cryptocurrency Market

Ethereum Genesis

As a result of a hard fork in the Ethereum network came to life two separate blockchains – Ethereum and Ethereum Classic. In general, Ethereum is changing cryptocurrency market. Let me explain why.

First of all, Ethereum, also known as ETH, was launched in 2015 by Vitalik Buterin. Buterin is a developer and co-founder of Bitcoin Magazine. The platform design is a decentralized open source network.

That allows the creation and implementation of smart contracts and decentralized applications (Dapps). Ethereum uses its own native cryptocurrency, called Ether (ETH), as payment for transactions on the network.

As far as, ETC as Ethereum Classic, was created in 2016 as a result of a hard fork in the Ethereum network. The hard fork was the result of a misunderstanding between Ethereum developers and community members.

Case was to deal with the aftermath of the hack that led to the theft of millions of dollars worth of ETH. Those who supported the hard fork believed that the stolen funds should be returned to their rightful owners.

While those who opposed the fork believed that the Ethereum network should remain immutable, i.e. unchanging. It is one of priciples of creating cryptocurrency.

Ethereum and Ethereum Classic Similarities

Ethereum Classic shares many similarities with Ethereum as it also uses smart contracts and dapps and is powered by its own native cryptocurrency, called Ether Classic (ETC). However, there are some key differences between the two platforms.

For example, Ethereum Classic has a smaller community and lower market cap compared to Ethereum. In addition, Ethereum Classic focuses on keeping its blockchain immutable. While Ethereum has made changes and updates to its network over time.

Despite their differences, both Ethereum and Ethereum Classic have seen significant growth and adoption in the blockchain and cryptocurrency space. Ethereum has become one of the most popular platforms for building and deploying dapps. We can’t forget it is also widely using platform in Initial Coin Offerings (ICOs).

On the other hand, Ethereum Classic gained a reputation as a more “pure” form of Ethereum because it kept its original vision of immutability.

Both Ethereum and Ethereum Classic experienced scalability issues that led to slow transaction speeds and high fees on the network. To address these issues, both platforms have proposed and implemented various solutions such as sharding and off-chain scaling. Fight about bigger influence on the market is still going on. Ethereum is changing cryptocurrency market more in this days.

Consensus Mechanism

Ethereum is also working on the upcoming Ethereum 2.0 update, which will introduce a new consensus mechanism called Proof of Stake (PoS) as well as increase network scalability. On the other hand, Ethereum Classic is also working on its own update, Atlantis. This is providing compatibility with the Ethereum network and is increasing network performance.

When it comes to mining, Ethereum is moving towards a Proof-of-Stake (PoS) consensus mechanism, which is gradually phasing out the current Proof-of-Work (PoW) mechanism. This will change the way new Ether is created and distributed, and will also make the network more energy efficient. On the other hand, Ethereum Classic still uses the PoW mechanism.

Overall, both Ethereum and Ethereum Classic have their own unique strengths and weaknesses and appeal to different groups of users and developers. Ethereum has a larger community and more resources, and is widely considered the more “mainstream” of the two platforms.

In fact, Ethereum Classic, is seen as a more “clean” version of Ethereum and has a smaller community of diehard supporters who value its immutability.

Ethereum and Ethereum Classic Competition

As both, Ethereum and Ethereum Classic continue to evolve. Both growing and it will be interesting to see how they compete. What will bring their coexistence in the blockchain and cryptocurrency space? Both platforms have the potential to drive innovation and industry change. So to write, it will be important for users and developers to stay on top of their developments and updates. It is competiton what in this time winning Ethereum. Ethereaum is changing cryptocurrency market more than Ethereum Classic. Game is on … Ethereum Classic still is in the fight. Good time will come for Ethereaum Classic as well. Be sure about it.

Let me just show you a few pictures. It would be clear whose winning competition. At least right now.

Is that all clear ?

Ethereum bitting Ethereum Classic in every possible way. How is that happen that in the last bull market Ethereum gain less than Ethereum Classic ? Is there something what we don’t know ?

Advantage of Ethereum and Ethereum Classic

Indeed, Ethereum and Ethereum Classic are blockchain platforms that offer a wide range of benefits to users and developers.

Of course, one of the main advantages of Ethereum is its versatility. So, the platform enables the creation and implementation of smart contracts and decentralized applications (Dapps). Overall that means that developers can use Ethereum to create a wide variety of applications. Without a doubt, from simple financial transactions to complex decentralized systems.

In addition, Ethereum has a large and active community of developers, which means there is a wealth of resources and support for those who want to build on the platform.

Another advantage of Ethereum is its scalability. While the platform has struggled with scalability issues in the past. Ethereum is working on solutions such as sharding and off-chain scaling to improve network speed and efficiency. The upcoming Ethereum 2.0 update also aims to increase network scalability by introducing a new consensus mechanism called Proof of Stake (PoS).

What About Ethereum Classic ?

Ethereum Classic also has its advantages.

Firstly, one of the main advantages of Ethereum Classic is its focus on immutability. This means that the platform is resistant to changes and updates, so makes it a more stable and predictable environment for developers and users.

Additionally, Ethereum Classic has a smaller community and smaller market cap compared to Ethereum, which makes it less susceptible to market fluctuations and noise.

Another advantage of Ethereum Classic is the Proof-of-Work (PoW) consensus mechanism. This mechanism is more decentralized and less energy-intensive than Proof-of-Stake (PoS), which Ethereum plans to implement. This makes Ethereum Classic more attractive to miners and those who value decentralization.

Overall, both Ethereum and Ethereum Classic offer unique benefits to users and developers. Ethereum is a versatile platform with a large and active community. While Ethereum Classic is more stable and predictable due to its focus on immutability.

In addition, Ethereum Classic’s PoW consensus engine is more decentralized and energy efficient. It making it more attractive to miners. Ultimately, the choice between the two platforms will depend on the specific needs and preferences of the user or developer.

Disadvantages of Ethereum and Ethereum Classic

Both Ethereum and Ethereum Classic have their own set of flaws that users and developers should be aware of. Ethereum is changing cryptocurrency market, but … there are some disadvantages what you should know about.

One of the main disadvantages of Ethereum is its scalability. Despite ongoing efforts to improve network speed and performance, Ethereum struggles with slow transaction speeds and high fees. This has made the network less accessible and less attractive to users, especially for high-transaction applications. The upcoming Ethereum 2.0 update aims to address these scalability issues, but it remains to be seen how effective it will be in practice.

Another disadvantage of Ethereum is its centralization. A small number of large mining pools control much of the network hash rate. This means that these pools have a disproportionate impact on the network, which can lead to issues such as censorship and collusion.

Disadvantages of Ethereum Classic

Ethereum Classic also has its own set of downsides. Surely, one of the main disadvantages of Ethereum Classic is its immutability. While this is an advantage by some users and developers there is second part as well. So, means that the platform is resistant to changes and updates. Moreover, this may make it less adaptable to new technologies and market conditions, which may limit its growth and adoption in the long term.

Another disadvantage of Ethereum Classic is the smaller community and market capitalization compared to Ethereum. This means there are fewer resources and support available to developers and users. It also makes the network more vulnerable to market fluctuations and volatility.

In summary, both Ethereum and Ethereum Classic have their own set of pros and cons. Ethereum has scalability issues and is more centralized. While Ethereum Classic is more immutable and has a smaller community and lower market cap. It is important that users and developers carefully consider these factors when choosing between the two platforms.

What Brings Ethereum ?

Ethereum has brought several changes to the cryptocurrency market. Including smart contracts that enable the creation of decentralized applications (dApps) on top of the Ethereum blockchain.

Ethereum’s use of a virtual machine, additionally known as the Ethereum Virtual Machine (EVM). That allows the use of code on the blockchain, enabling the creation of decentralized autonomous organizations (DAOs) and other decentralized systems. Ethereum’s ability to support standard tokens such as ERC-20 and ERC-721 has also led to thousands of new assets and a thriving ecosystem of decentralized finance (DeFi) applications.

Overall, Ethereum plays a role in shaping how the cryptocurrency market works and continues to drive the development of new decentralized technologies.

Ethereum has a growing number of supporters and investors, indeed. After the peak of the bull market, many of them are still interested in this asset.

What Brings Ethereum Classic ?

Ethereum Classic (ETC) is a fork of the Ethereum blockchain that aims to preserve the original properties. What means its immutability and censorship resistance. ETC is a result of a hard fork on the Ethereum blockchain. After following the 2016 DAO hack in which a significant amount of ETH was stolen.

While the Ethereum community decided to retire the blockchain to recover the stolen funds. A group of supporters decided to continue using the original blockchain, which eventually became Ethereum Classic.

Ethereum Classic introduced several changes to the cryptocurrency market.

Primarily by emphasizing the importance of immutability and censorship resistance in blockchain technology, indeed. Without a doubt, ETC’s commitment to these principles has attracted a community of supporters. So to say, they appreciate the decentralized and trustless nature of blockchain technology.

Also, Ethereum Classic has a smaller community and smaller market cap compared to Ethereum. This allows for a more stable and predictable development plan that attracts enterprise level clients and projects.

Ethereum Classic also introduced new features such as the Atlantis and Agharta hard forks. It increased compatibility with Ethereum and improved overall network performance.

Overall, Ethereum Classic has played a role in shaping the current cryptocurrency market. ETC is highlighting the importance of immutability and … censorship resistance in blockchain technology. As well as, providing an alternative version of Ethereum with a more predictable roadmap and better Ethereum compatibility.

In the case of Ethereum Classic, interest is short and many investors are not interested in this asset after the peak of the bull market. Which explains that it was a purely speculative asset for many of them.

Summary

Ethereum and Ethereum Classic come from the same blockchain created in 2015. Orgin both of cryptocurrencies are the same. In this meaning Ethereum is changing cryptocurrency market.

As a result of abuse resulting from programming errors in the DAO organization. There was a hard fork between Ethereum and Ethereum Classic. Ethereum Classic remained the original blockchain with information about abuse. In the case of Ethereum, these errors have been withdrawn from the blockchain.

Since then, blockchains have been creating separate projects.

From 2022, Ethereum switched to the PoS (Proof-of-Stake) consensus mechanism, while Ethereum Classic remained on the PoW (Proof-of-Work) mechanism.

Ethereum is more popular, but due to the PoS mechanism, miners became involved in mining Ethereum Classic. The change in the Ethereum blockchain had a positive impact on the Etheum Classic network.

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