![]() ![]() This was done purposefully to associate both cryptocurrencies reputationally and to make it easy for the market to understand ETC’s schedule. Note that Ethereum Classic’s maximum supply is similar to Bitcoin’s but 10 times higher. Given Ethereum Classic’s frequency of payments to miners, the number of coins it issues per block, and its discount schedule, there will be a maximum supply of ETC numbering 210,700,000. Given the frequency of payments to miners, the number of coins issued per block, and its discount schedule, Bitcoin will have a maximum supply of 21,000,000 BTC. This means that the total number of coins that will ever exist for each blockchain is known. Capped Supplyīoth ETC and BTC have a capped supply of their coins. However, in 2017 it migrated to a schedule that is also “set in stone” as it establishes the whole future distribution in the software in the form of a supply algorithm very similar to that of Bitcoin. The supply algorithm is a set of mathematical rules that establish what number of coins will be paid to miners per block, the frequency of the payments, and a schedule that will decrease these payments as time passes by.Īs said before, ETC started with no monetary policy other than a fixed payment per block. This was done by establishing its whole future distribution in the software in the form of a supply algorithm. Algorithmicīitcoin’s monetary policy was “set in stone” since it was launched in 2009. The above system guarantees that both ETC and BTC will be sound money as gold was in the old days, hence the term “digital gold”. Then, when the blocks are accepted by the rest of the network, the miners are credited newly issued coins by the algorithm. The way they work is that miners on both blockchains create blocks of transactions and to stamp them cryptographically they need to do a lot of computational work, which uses a lot of electricity. The reason for this is that both networks are proof of work blockchains and the purpose of that consensus mechanism is to make it as costly to create ETC and BTC as it is in the real world for gold. In the table below we compare both blockchains’ monetary policies and in the following sections we will explain each feature in the table. When Ethereum (ETH) forked away from ETC in 2016, the Ethereum Classic core developer team decided to establish a monetary policy as similar as possible to that of Bitcoin. Ethereum Classic was originally one chain with Ethereum, so it had that system’s monetary policy, which is basically to have none at all as the core developer team has changed it manually many times, and will likely continue doing so. In this post we will compare the Ethereum Classic (ETC) and Bitcoin (BTC) monetary policies.īitcoin was the first blockchain ever and currently has the same original monetary policy with no changes since genesis. You can listen to or watch this video here: ![]()
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