The upcoming Ethereum Merge, transitioning the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS), represents one of the most significant upgrades in the history of blockchain. This shift has raised questions across the crypto community, especially concerning the future of mining and alternative blockchain networks. One project that has come into focus is Ethereum Classic (ETC). In this article, we explore what the Merge may mean for ETC and how these two related yet distinct blockchains continue to evolve.
Understanding Ethereum and Ethereum Classic
Ethereum (ETH) is the world’s second-largest cryptocurrency by market capitalization and the leading platform for decentralized applications (DApps). Its transition to Ethereum 2.0 aims to improve scalability, security, and energy efficiency.
Ethereum Classic (ETC) is the original Ethereum blockchain that continued following a ideological and technical split after The DAO hack in 2016. While both started from the same source code, the two networks have diverged significantly in philosophy, security, adoption, and use cases.
The History: A Community Divided
The division between Ethereum and Ethereum Classic originated from a fundamental disagreement within the community. After a major security exploit in The DAO project—a decentralized autonomous organization built on Ethereum—millions of dollars in ETH were stolen.
The majority of the community supported a hard fork to revert the stolen funds and strengthen the network’s security. This new chain became what we now know as Ethereum (ETH).
A minority of users opposed the fork, citing the principle of “code is law.” They believed that the immutability of the blockchain should be preserved, regardless of external events. This group continued to use the original, unaltered chain, which was renamed Ethereum Classic (ETC).
Key Similarities Between ETH and ETC
Despite their differences, Ethereum and Ethereum Classic still share some technical underpinnings:
- Both started with a Proof-of-Work consensus mechanism.
- Both support smart contracts and host DApps.
- They have similar theoretical transaction throughput (around 15–20 TPS).
However, these similarities are overshadowed by substantial differences in real-world usage, security, and development philosophy.
Major Differences Between ETH and ETC
Philosophy and Governance
Ethereum adopts a pragmatic approach, allowing upgrades and hard forks to improve functionality or respond to crises. Its transition to PoS is a example of this adaptive governance.
Ethereum Classic holds a strong belief in blockchain immutability and avoids fundamental changes to its protocol. This can be both a strength and a limitation.
Security Posture
Ethereum has maintained a relatively strong security record despite its size and popularity. It has been the target of numerous attacks but has consistently adapted to threats.
Ethereum Classic, on the other hand, has suffered several 51% attacks, notably in 2019 and 2020. These incidents undermined confidence in the network and led some exchanges to temporarily delist ETC.
Supply Model
Ethereum has no hard cap on its total supply, though its inflation rate remains low (around 0.5% post-Merge).
Ethereum Classic has a fixed supply cap of 210.7 million ETC tokens. Its current inflation rate is higher than Ethereum’s—approximately 5% annually.
DApp Ecosystem and Adoption
Ethereum hosts over 3,000 DApps and dominates the DeFi and NFT markets, with a Total Value Locked (TVL) exceeding $100 billion.
Ethereum Classic supports only a small number of DApps, with a TVL around $100 million—more than a thousand times smaller than Ethereum’s.
Transaction Speed and Costs
Although both networks have similar theoretical TPS limits, Ethereum often operates near its capacity due to high demand, resulting in elevated gas fees.
Ethereum Classic processes far fewer transactions, which means significantly lower fees—often less than one cent per transaction.
How the Ethereum Merge Affects ETC
The Merge is expected to have several ripple effects throughout the crypto ecosystem, especially for networks like Ethereum Classic.
Miner Migration
With Ethereum moving away from mining, GPU miners will need to find alternative PoW networks. Ethereum Classic, which shares Ethash mining algorithm with Ethereum, is a natural candidate.
This could lead to a short-term increase in hashrate and attention for ETC. However, whether this translates into long-term value depends on broader adoption and improvements in network security.
Market Sentiment and Speculation
ETC has occasionally seen price surges based on speculation around the Merge. Some investors view ETC as a “backup” or “original” Ethereum with untapped potential.
Still, investing in ETC carries risks—especially given its history of security issues and relatively slow development pace.
Fundamental Challenges
For ETC to gain broader traction, it must address critical challenges, particularly around security and scalability. Without significant protocol upgrades or increased developer activity, it may struggle to compete in an evolving market.
Frequently Asked Questions
What is the difference between ETH and ETC?
Ethereum (ETH) is the result of a hard fork from the original Ethereum blockchain, now transitioning to Proof-of-Stake. Ethereum Classic (ETC) is the original chain that continued with a Proof-of-Work model and a focus on immutability.
Will ETC become more valuable after the Merge?
While ETC may see short-term interest from miners and traders, long-term value depends on adoption, security, and network improvements. It is not guaranteed to rise significantly.
Can I mine ETC with my ETH mining rig?
Yes. Since both use the Ethash algorithm, existing GPU miners can easily switch to ETC. 👉 Explore mining alternatives and strategies
Is Ethereum Classic secure?
ETC has experienced 51% attacks in the past. While the network remains operational, users should exercise caution and monitor security developments.
What is the total supply of ETC?
Ethereum Classic has a fixed supply cap of 210.7 million ETC tokens.
Should I invest in ETC?
Investment decisions should be based on personal research and risk tolerance. ETC is a highly speculative asset with both proponents and skeptics.
Conclusion
The Ethereum Merge is a landmark event that may bring temporary attention to Ethereum Classic, especially from displaced miners. However, ETC’s long-term prospects will depend on its ability to improve security, attract developers, and define its niche in a competitive ecosystem.
While ETC offers very low transaction fees and ideological purity, it faces significant challenges that Ethereum has already addressed through upgrades and community support. Investors and users should carefully weigh these factors before engaging with Ethereum Classic.
For those interested in tracking developments in real-time or exploring other blockchain opportunities, 👉 stay informed with the latest market tools.