Analyst Shares How Ethereum Classic (ETC) is Able to Provide Security Services to Ethereum (ETH)
The former became the largest network to launch decentralized applications (dApps) and create smart contracts.
Could ETC Provide Security To ETH?
McIntyre is also a former Business Development Manager at ETCDEV, which focuses on the development of Ethereum Classic. Nonetheless, due to the fact that it did not have enough funds, the firm had to shut down.
During a conversation with CryptoGlobe, McIntyre explained that ETC provides security while ETH speed and performance.
About it, he commented:
“A useful analogy is to see ETH as a sports car and ETC is an armoured vehicle. The problem is to think that ETH can be an armoured vehicle and ETC can be a sports car. ETH is about scaling and performance and ETC is about high value and security.”
Moreover, McIntyre worked as a Senior VP at Morgan Stanley and VP at UBS. He explained that Ethereum Classic and Ethereum wok in completely different ways. Ethereum Classic is a secure chain that is suitable for creating smart contracts between people and businesses. Meanwhile. Ethereum wants to offer high speed for a large number of transactions to provide services to high-performance apps.
McIntyre suggests that it would be a good way to grow to cooperate rather than compete. There are several networks in the market that are currently trying to surpass Ethereum and are offering new innovative solutions to participants in the market. Some of these networks include Tron (TRX), EOS and Cardano (ADA).
Ethereum is also planning to move to a Proof-of-Stake (PoS) based system with database fragmentation. This is why Ethereum Classic will be the only non-fragmented, fixed monetary policy, Proof-of-Work (PoW) and Turing complete blockchain.
During the interview, he has also commented about delegated proof of stake (DPoS), that other networks such as EOS implemented claiming to be more scalable and compatible with future technologies. Nonetheless, McIntyre believes that these systems are distributed ledgers and not blockchans. They just make blocks o mimic the authority and perceived security that Bitcoin (BTC) and Ethereum Classic share.
According to him, their security is up to ⅓ fault tolerance and nothing more. As EOS designated stakers to control the nework and verify transactions, the security gets reduced even further. He has also mentioned that a system as centralized as EOS that says that is ‘scalable’ and ‘compatible’ with future technologies is a truism.
This shows that EOS is a platform that is not as efficient as AWS or Azure but it also lacks the trust features that ETC and Bitcoin have.
“Therefore, EOS is a dead end for all intents and purposes,” said McIntyre.
He went on saying that the industry will be divided into different layers. The first layer will be the most secure. The performance will be low but it will provide the highest value. Meanwhile, L2 will be the high-performance layer but with lower transaction value. These Layer 2 systems are the Lightning Network (LN), Plasma, Raiden, Liquid and other side chains.
At the time of writing this article, Ethereum Classic (ETC) is being traded around $5.89 and it has a market capitalization of $646 million. This makes it the 18th largest digital asset in the market.