Ethereum (ETH) stands as the second-largest cryptocurrency by market capitalization, known for its widespread appeal. Over the years, Ethereum has undergone several forks, with Ethereum Classic (ETC) and Ethereum PoW (ETHW) emerging as prominent alternatives. These forks cater to users who prefer the original Proof-of-Work (PoW) model over Ethereum’s shift to Proof-of-Stake (PoS). But which one is better for payments? Let’s dive in.
Key Takeaways
- Ethereum Classic (ETC) and Ethereum PoW (ETHW) are forks of the original Ethereum network, created at different times.
- Both use the Proof-of-Work (PoW) consensus mechanism, appealing to miners and decentralization advocates.
- Unlike Ethereum (ETH), ETC and ETHW remain mineable, preserving the original mining ecosystem.
- Both cryptocurrencies can be used for transactions, with varying adoption rates and network dynamics.
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What is Ethereum PoW (ETHW)?
Ethereum’s transition to Proof-of-Stake (PoS), known as “The Merge,” occurred on September 15, 2022. This upgrade rendered traditional Ethereum mining obsolete, leaving miners without a role in the new system.
In response, Ethereum PoW (ETHW) was created to maintain the PoW model. Launched on the same day as The Merge, ETHW rewards miners with its native token, ETHW. It aims to preserve the original mining-based security and decentralization principles.
Key Features of ETHW:
- Consensus Mechanism: Proof-of-Work (PoW)
- Launch Date: September 15, 2022
- Primary Use Case: Mining rewards and transactions
What is Ethereum Classic (ETC)?
Ethereum Classic (ETC) originated from a ideological split within the Ethereum community following the DAO hack in 2016. While the majority opted to reverse the hack’s effects, a faction insisted on maintaining the immutable nature of the blockchain, leading to the creation of ETC.
ETC operates as a smart contract platform and retains the original PoW mechanism, making it a favorite among decentralization purists.
Key Features of ETC:
- Consensus Mechanism: Proof-of-Work (PoW)
- Launch Date: July 30, 2015
- Primary Use Case: Decentralized applications (dApps) and mining
Ethereum PoW vs Ethereum Classic: Key Differences
| Feature | Ethereum Classic (ETC) | Ethereum PoW (ETHW) |
|---|---|---|
| Consensus Mechanism | PoW | PoW |
| Launch Date | July 30, 2015 | September 15, 2022 |
| Circulating Supply | 138M ETC | 107M ETHW |
| Market Cap (2022) | $2.53B | $375M |
| Use Case | dApps, Mining | Mining, Transactions |
Which is Better for Payments?
Ethereum Classic (ETC)
- Pros: Wider adoption, established ecosystem, higher liquidity.
- Cons: Higher transaction fees during peak times.
Ethereum PoW (ETHW)
- Pros: Lower entry cost, newer network with growth potential.
- Cons: Limited adoption, lower liquidity.
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How to Accept ETC or ETHW Payments?
Businesses can accept ETC and ETHW via crypto payment gateways. Here’s a simplified process:
- Choose a Payment Gateway: Select a service supporting ETC/ETHW.
- Set Up a Wallet: Securely store received cryptocurrencies.
- Integrate API/Plugin: Add payment options to your website.
- Start Accepting Payments: Enable crypto transactions seamlessly.
FAQs
1. Can I mine Ethereum Classic and Ethereum PoW?
Yes, both ETC and ETHW use Proof-of-Work, allowing mining with GPUs or ASICs.
2. Which is more secure: ETC or ETHW?
Both are secure, but ETC has a longer track record, while ETHW benefits from newer code.
3. Which cryptocurrency has lower fees?
ETHW generally has lower fees due to its smaller user base.
4. Are ETC and ETHW compatible with Ethereum wallets?
Most wallets support ETC, while ETHW requires compatible wallets post-Merge.