Ethereum is an open-source, decentralized blockchain platform with smart contract functionality. Ether (ETH) is a native cryptocurrency of the Ethereum blockchain platform. Ether is used to pay transaction fees and computational services. Developers can write smart contracts that receive, hold, and send Ether.
- It is a transactional token that facilitates operations on the Ethereum Network.
- It is the second-largest virtual currency by market capitalization.
- It holds market value and is exchangeable for fiat currency on cryptocurrency exchanges.
- Ether is given to network participants randomly chosen as validators through proof-of-stake consensus.
- Ether is needed to pay for the transaction and secure the blockchain.
- Approximately 5 ethers are created every 12 seconds.
What is ETC?
Smart contracts are executed on the Ethereum Classic platform, which is a blockchain-based, open-source, decentralized, distributed cryptocurrency. With Ethereum Classic being the oldest of the two and Ethereum being the newest, it divided the original Ethereum blockchain into two pieces. ETC is a cryptocurrency that was launched in 2016 as a hard fork from Ethereum (ETH).
- ETC’s main function is as a smart contract network, with the ability to host and support DApps.
- ETC uses PoW mining algorithm.
- ETC block reward decreases with time, with the next drop due at block 15,000,000 in April 2022, from 3.2 ETC to 2.56 ETC per block.
ETH vs ETC
Below are the differences between ETH and ETC:
| Parameters | ETH | ETC |
|---|---|---|
| Created On | 2014 | 2016 |
| Founder | Vitalik Buterin and Gavin Wood | Vitalik Buterin and Gavin Wood |
| Blockchain Technology | Ethereum | Ethereum Classic |
| Total Supply | It has an uncapped total supply with a fixed supply per year. | The policy is changed, reducing the block reward by 20% at the 5 millionth block number and 20% every 5 millionths. |
| Hard Fork | Before the hard fork, Ethereum existed, but it has become more powerful after the hard fork. | ETC was born after the hard fork. |
| Mining Algorithm | Proof of Stake | Proof of Work |
| Max Supply | NA | 210,700,000 |