In the current blockchain environment, we don’t see too many proof-of-work cryptocurrencies anymore. This type of protocol is being slowly phased out for its high demand in energy resources.
However, PoW networks like Bitcoin and Ethereum Classic still conserve a lot of benefits for their users. Their high decentralization and security attract enthusiasts who adhere to the original blockchain ethos.
In this article, we compare BTC vs ETC and point out their similarities and differences. With these fundamentals under your belt, you should be able to assess which one provides the best investment opportunity in the future.
BTC vs ETC: Similar Features
Bitcoin and Ethereum Classis have a few similarities. These characteristics are what make them attractive to aficionados who don’t trust the more novel consensus mechanisms.
Proof-of-Work
Bitcoin and Ethereum Classic are proof-of-work blockchains. This means that they require miners to compete with each other and solve mathematical puzzles to discover the next block in the chain.
Bitcoin emerged as the first blockchain to use this method for confirming transactions on its digital decentralized ledger. At the dawn of the blockchain industry, PoW was the most prevalent type of consensus algorithm. Litecoin, Dogecoin, and dozens of Bitcoin forks adopted this method.
Ethereum also opted for this proven consensus method, although it switched to proof-of-stake in 2022. That said, Ethereum Classic remained on PoW and to this day requires miners to confirm blocks on the network.
Security
Because of their PoW consensus, many consider BTC and ETC to be highly secure chains. Mining is a democratic way to participate in the network, and over the years, both blockchains have gained a fair amount of adoption.
Worth noting is that no one has ever managed to hack the Bitcoin network. Consequently, many consider it as the safest cryptocurrency available and suitable for holding large amounts of assets. On the other hand, Ethereum Classic has been under several 51% attacks.
Decentralization
Bitcoin and Ethereum Classic do not depend on a centralized entity to issue coins. Both networks rely purely on code for the issuance of new coins and verifying transactions of the network. This is in contrast to exchanging CELO to BNB, which are issued by a single entity.
What’s more, because of their longevity in the industry, they have managed to spread to millions of node runners. This further adds to their decentralization and inherent security.
BTC vs ETC: Different Features
With that said, Bitcoin and Ethereum Classic contrast each other in most other characteristics. Let’s take a look at their differences.
Smart Contracts
Bitcoin is fairly limited when it comes to smart contract capability. While the possibility of creating smart contracts on the Bitcoin codebase exists, developers find it too restrictive to be practical.
Bitcoin ordinals are one of the only applications of smart contracts on its blockchain. These act as NFTs inscribed within each block of transactions.
Ethereum Classic is, on the other hand, a fully smart contract-capable network. It uses the Ethereum Virtual Machine to allow developers to deploy full-fledged decentralized applications on the chain. This includes DeFi protocols, blockchain games, and NFT marketplaces.
Use Cases
While Bitcoin’s initial purpose was to become a payment network, it has evolved into a store-of-value asset. Its deflationary qualities have attracted diamon-hand holders that either hold BTC long-term or use it for very large transactions.
Just like Ethereum, Ethereum Classic allows developers to deploy dApps and tokens on its network. The ETC coin serves as gas on the chain to interact with the smart contracts on the network.
Market Position
As the first crypto to popularize blockchain technology, Bitcoin has gained incredible adoption in the past 14 years. It’s, by far, the most popular cryptocurrency on the market, generating more trading volume than any other coin or token. It dominates the market by representing more than 50% of the entire value of all cryptocurrencies combined.
Ethereum Classic is a niche cryptocurrency. It’s the remnant of the Ethereum hard fork that occurred in 2016, which split the chain into Ethereum and Ethereum Classic. It still holds a decent number of users and trading volume, steadily remaining in the top 30 by market cap.
BTC vs ETC: Which Is a Better Investment?
The million-dollar question remains whether you should invest in BTC or ETC. While Bitcoin remains a sure value, ETC managed to outperform it in the last bullish cycle. If you are looking for a riskier venture with more upside potential, opt for ETC. Conversely, Bitcoin will offer you the best store of value in the market.
Jessica has a flair for writing engaging blogs and articles. She enjoys reading and learning new things which enables her to write different topics and fields with ease. She also strives to break down complex concepts and make them easy for anybody to comprehend.
