Ethereum Classic, as its name implies, is the original version of the Ethereum blockchain. Smart contracts, computer programs that activate when certain criteria are satisfied between a buyer and a seller, are currently being executed on this blockchain. The Ethereum Classic network was created in July 2016 when disagreements amongst network users reached a breaking point, prompting a hard fork.
The DAO (Decentralized Autonomous Organization), an Ethereum-based initiative, was hacked in 2016 due to a coding flaw, and $50 million worth of investor funds were taken. In the end, the Ethereum community could not come to terms with how to pay the affected consumers.
Ethereum co-founders Vitalik Buterin and Gavin Wood advocated for reversing the blockchain, but others thought the record should remain immutable (in keeping with the idea of cryptocurrencies). Ultimately, the consensus was obtained, and the Ethereum Classic hard fork was created.
Those in favor of the fork switched to the mainstream Ethereum that the vast majority of users are familiar with, while those opposed to it stayed on the original chain, which was called Ethereum Classic. The original code for Ethereum was preserved, but a group of miners determined they would be responsible for steering Ethereum Classic in a different direction. Due to this, Ethereum Classic does not participate in blockchain upgrades like the Ethereum 2.0 Merge.
For those unfamiliar, Ethereum Classic is the native currency of this blockchain (ETC). DApps built on Ethereum Classic can use native ERC-20 tokens, the same as DApps built on Ethereum.
For much of Summer 2022, thanks to the Ethereum proof of stake blockchain merging, Ethereum Classic enjoyed unprecedented levels of popularity. The Ethereum network has recently made the switch from proof of work to proof of stake, meaning that miners are no longer necessary to validate transactions. To replace traditional blockchain security, Ethereum will rely on validators.
As a result, tens of thousands of miners will likely switch to another cryptocurrency soon. Ethereum Classic has arrived.
Ethereum Classic is still a proof-of-work blockchain that can be mined with both GPUs and ASICs.
The Proof-of-Work protocol for Ethereum. Just how does this variant of Ethereum vary from Ethereum Classic? Let’s find out.
The long-awaited Ethereum Merge has resulted in the introduction of Ethereum Proof of Work (ETHW). The proof of work consensus technique, which required miners’ efforts, was employed by the primary Ethereum network. Miners would be incentivized to solve difficult mathematical problems to verify blocks of transactions.
Ethereum, however, has long intended to use the proof of stake mechanism, as this is a more resource-saving system.
To add, gas prices on the Ethereum blockchain might be extremely high depending on the current traffic volume. Payments called “gas fees” are used to fund the network’s computing needs. The costs could be reduced with a consensus process that uses less energy (but this isn’t likely to happen until later versions of the Ethereum PoS blockchain add gas-saving technology such as blockchain sharding). In addition, adopting proof of stake can make Ethereum a greener network in general.
However, the miners who have lost money due to the Ethereum 2.0 Merge are not pleased. Ethereum Proof of Work can thus be mined for profit alongside Ethereum Classic.
Ethereum Proof of Work’s primary goal is to ensure that older Ethereum miners can continue to profit from their efforts. To help miners who lost their jobs after the Merge, miner Chandler Guo created Ethereum Proof of Work. The cryptocurrency used only in Ethereum’s Proof of Work system is abbreviated ETHW.
After its initial release in August 2022, the price of ETHW skyrocketed to about $140 before settling at roughly $9 today. Such price swings are par for the course of a nascent cryptocurrency, and the future performance of its value is anyone’s guess. This is just how things work in the cryptocurrency market.
As a whole, the Ethereum Proof of Work blockchain appears to be positive for miners, but it has already encountered a major issue because of its chain ID. Because the Ethereum Proof of Work network and the Bitcoin Cash (BCH) testnet have the same chain ID, the MetaMask client could not tell which blockchain was which.
To mine ETHW, you can use either a dedicated ASIC miner or a graphics processing unit (GPU). Numerous ETHW mining pools exist for miners to join. Of particular note, Binance now supports Ethereum Proof of Work mining via Binance Pool. Binance Convert allows ETHW mining rewards to be converted to Binance USD or Tether. You can now join an ETHW pool with WoolyPooly.
Ethereum Proof of Work has not yet been made available for trade on Binance. Not only has ETHW not been made available for trade on the most popular cryptocurrency exchanges, but on the vast majority of them as well. At the present, ETHW appears to serve mostly as a mining incentive currency.
While the consensus method is the same as Ethereum Classic and Ethereum Proof of Work, these two blockchains are very different. If you’re looking for a blockchain to create DApps on and a reliable mining solution, go no further than Ethereum Classic; Ethereum Proof of Work is primarily a reward cryptocurrency for miners. However, your goals in the cryptocurrency business will determine which of these blockchains and cryptocurrencies is best suited to you.