Dogecoin (DOGE) vs Ethereum Classic (ETC): What’s the Difference?
Dogecoin and Ethereum Classic are two of the many proof-of-work (PoW) cryptocurrencies. They share this consensus mechanism, but are fundamentally different in many other aspects.
In this guide, we will try to distinguish these two projects, focusing on the differences between them and their major strengths and weaknesses. Because the two offer different things to users, we will also discuss what each one offers.
We will also try to help you in deciding which one is most suitable for investment. If you’re reading this guide, you’re probably also considering investing in one of the two, and this guide will help you make this decision.
What is Dogecoin (DOGE)?
Dogecoin is the biggest and the first memecoin to be created. It was created as a joke currency entirely driven by the sentiments of those who were fans of the Shiba Inu dog breed that inspired the cryptocurrency.
Since then, Dogecoin has grown in popularity and several investors have used it as an asset which has rewarded them, purely driven by sentiments since there are no real use cases for the cryptocurrency.
Dogecoin’s PoW network uses miners who help to secure the network and help to verify transactions on behalf of the network. In the process, they are rewarded with new DOGE coins, thus releasing more coins into circulation.
The network was designed after the original design of Bitcoin. However, it is faster and more scalable than Bitcoin. Because of this, it is used for payments by several merchants including Tesla which is owned by Elon Musk who is a major supporter of the project.
The project is also developing new capacity to support non-fungible tokens (NFTs) and other things in order to give it some real world use cases. This is in a bid to sustain the value of the project.
Although Dogecoin was designed like Bitcoin, its supply is different from that of Bitcoin. DOGE does not have a cap on its supply. This means there will be no end to the supply of the coin and more will be mined at every point.
However, there are currently 145 billion DOGE in circulation even though the maximum supply is infinite.
What Is Ethereum Classic (ETC)?
Ethereum Classic as the name implies is a crypto project that came out of EThereum. The project was created due to a controversy on how Ethereum should function. Because there was no resolution, Ethereum had to split, and Ethereum CLassic retained several of the initial characteristics of the project.
One of such characteristics is the PoW consensus mechanism. Ethereum Classic still uses this to secure its network and verify transactions. Like any other PoW network, it relies on miners to verify transactions and they are rewarded with new ETC which are then added to the supply.
Unlike Dogecoin or even Bitcoin however, Ethereum Classic is a web3 network, that is it supports smart contracts and decentralized applications, as well as other aspects of the web3 ecosystem.
Developers use it to build and deploy decentralized applications, and it is more scalable and faster than Bitcoin. It is also cheaper to use consequently.
The native token for the network known as ETC is used to power the Ethereum Classic network. It is used to pay for transaction fees and may also serve as some form of governance token.
ETC has a maximum and total supply of 210 million coins. However, there are only 148 million coins in circulation currently.
Which Is Better?
Having seen the features and differences between Dogecoin and Ethereum Classic, the question is which of the two is better?
First, Ethereum Classic is a project with a definite use case, unlike Dogecoin. ETC also has a much smaller and limited supply than DOGE. this also makes it a better investment than DOGE. Therefore for all intent and purposes, Ethereum Classic is a better cryptocurrency than Dogecoin.
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