Speaking of Altcoins, Ethereum is the first that comes to mind as it is the second-most dominant one in circulation. The overall market cap of Ethereum is more than 388 billion dollars. Ethereum is making rounds in the wallets of many investors today owing to its popularity, price, and profits. The Ethereum ecosystem has slowly branched out into different paths and the creation of Ethereum classic has created some sort of confusion between the Ethereum family enthusiasts. The two terms are different and exhibit different advantages and properties. In other words, these can also be considered as two different versions of the same blockchain network. Naturally, the overall Ethereum price was affected by the introduction of the second variant. However, it gradually regained its place back after dipping in value for a while.
The origin of Ethereum – Up until 2013, the Ethereum family consisted of only one blockchain and cryptocurrency – ETH. It was different from bitcoin in the sense that the blockchain associated with this crypto allowed the development of decentralized apps on top of the blockchain technology with the help of smart contracts. These smart contracts became appealing for small businesses. There was a split in the blockchain following the creation of a decentralized autonomous organization (DAO). The price of ETH increased significantly, however, it also caught the eye of hackers. The attackers withdrew almost 50 million dollars from the blockchain which led to a divide in the Ethereum community. The older blockchain that kept the records unaltered was Ethereum classic (ETC) and the new network was called Ethereum (ETH).
To be able to make up one’s mind about which version to invest in, it would be important to gain an insight into the difference between these variants.
- Immutability –
Ethereum provides a platform where prior transactions can be altered, adjusted, and changed.
Ethereum Classic uses the original ETH system that calls for immutability and no tampering with data of any kind.
- Mining –
Ethereum utilizes an updated method of mining called the proof-of-stake process. This allows the people who are involved in validating transactions to contribute their stakes into the process of mining the coins. They can add new blocks to the already existing chain and produce a reward thus earning the coins.
Ethereum Classic, however, uses the proof-of-work process to mine new coins. The process is similar to Bitcoins as it involves the miners solving complex equations on the blockchain to be rewarded.
- Limit –
Ethereum does not technically have any limit to the number of coins being produced but there is a restriction of 4.5% growth every year
ETC is limited to only 230 million coins overall.
- Value –
Ethereum’s value in Indian rupees – ETH to INR is currently at approximately 2,34,885 rupees. It is the second-highest crypto in the market in terms of capitalization.
ETC to Indian rupees is at 2,805.47 INR at the moment. The market cap of this coin is significantly lower and lies at around 7 billion dollars.
The similarities – Along with these differences, since both these tokens originated from a single entity, they also have a few similarities. Both these coins run on the decentralization model and aren’t run by single authoritarian parties. The several computers that operate the blockchain are the actual governing authorities of this system. Secondly, both these versions use smart contracts that require the users to match the specific terms posed for operation. This ensures the security of the platform. Lastly, while the specific details of the transactions remain private, the public keys may stay open. However, the identity or details of the people will not be revealed on the setup.
Which one to choose – Upon understanding the basic differences and similarities between both versions, it can get slightly easier to decide on which variant to buy. This will be dependent on the personal goals and insights of the investor. If the primary goal is to keep the money safe and secure, using the blockchain that is immune to hacking would make more sense. Similarly, if the investment budget is not very high, one can choose to opt for ETC as the overall value to buy one token is much lesser than ETH. Energy consumption, being environmentally friendly, etc could also be certain factors that could affect the buying and selling of Ethereum tokens. Irrespective, Ethereum is considered as an overall lucrative investment, and putting in a certain amount of money for investing in either version of this crypto would be a good idea.
How to purchase ETH, ETC – There are a few simple steps that any new investor can use to purchase these cryptocurrencies:
- Register on an online exchange platform – Use a platform that would allow the exchange of the desired cryptos with proper safety and security features in place. Check for KYC protocols in the platform. Ensure that all the uploaded documents are clear and the details are accurate.
- Transfer funds – Link the bank account, use credit or debit cards, PayPal, or any other method to transfer funds into the online wallet. The funds would need to be added to the country’s denomination. Convert the funds to the desired crypto before making the purchase.
- Buy, sell or trade – Once the amount is transferred, you can choose to buy, sell, hold, or trade-in cryptocurrencies based on your understanding of the market and expert guidance.
The process is fairly simple, even for novices. Do not spend more time without this healthy and profitable investment opportunity that is right at your doorstep. Begin investing at the earliest.