The upcoming merge in September has caused quite a stir, with analysts taking a close look at its repercussions on ETH to give investors an idea of what to expect. While Ethereum and Ethereum Classic aim to develop smart contracts and decentralized apps, they achieve this through different means. They have divergent methods for conducting mining activities, changing transaction details, and limiting coin production.
The creation of Ethereum Classic happened as an offshoot of the original Ethereum blockchain platform, which was established in 2015. Although there have been modifications to the current Ethereum chain, it is still a popular choice among cryptocurrency investors. Today, Ethereum Classic is incompatible with any Ethereum updates, including hard forks. It is identified by its ticker symbol, ETC. Ethereum Classic focuses on a platform where users cannot alter transactions. It operates under smart contracts and produces Ether under the ETC token name.
There are significant differences between Ethereum and Ethereum Classic. The Ethereum platform allows prior transactions to be modified and updated. Ethereum Classic, on the other hand, utilizes the original Ethereum system that urged immutability, a procedure where users may not change transactions in blockchain history ETC verifies transactions through a proof-of-work system, similar to what Bitcoin uses. Miners who verify these transactions on the blockchain receive Ether rewards. In its existence, Ethereum Classic is restricted to 230 million tokens.
Both Ethereum Classic and Ethereum are built as decentralized platforms without a single authority. They use many instances of the software or nodes to execute their blockchain Although Ethereum Classic and Ethereum transactions cannot be altered, they operate as pseudonymous setups. The public keys on a transaction will stay open, but the person’s name and other identifying details will not appear. The Ethereum Classic (ETC) price differs significantly from ETH.
Ethereum continues to reign supreme over Ethereum Classic regarding purchasing, selling, and creating NFTs. This doesn’t mean that ETC is doomed, but ETH will probably be the more popular and trusted blockchain in the future.
The Merge will unite the ETH’s tenth mainnet, “Shadow Fork,” with the Beacon Chain to solve what is known as the “blockchain trilemma” of providing scalability, security, and decentralization to create a powerful, hybrid blockchain platform. Despite the Merge hype, ETH will still charge approximately the same gas fees, although many transactions will probably be faster and more “green.”
The Merge.ETH 2.0 will use Proof-of-Stake (PoS); therefore, current ETH miners will want to convert to ETC when the Merge is finalized. The computing equipment to “mine” ETH and ETC will be the same. Although there is no guarantee that the ETC price will increase when the proposed Merge between ETH and ETC occurs, it is possible that the cost of both cryptocurrencies could rise as a result of the increased interest and investment in the ETH platform.