Bitcoin is the oldest cryptocurrency and also the first to use proof-of-work (PoW) consensus. However, there are other cryptocurrencies that use PoW.
Two of these projects are Dogecoin and Ethereum Classic. While they are both PoW cryptocurrencies, they are more different than they are similar in their design and the way they work.
If you’re trying to decide on which of these two cryptocurrencies is best for you, you have come to the right place. We will highlight the differences between the two with the features of each, so that you decide for yourself which one is best for you.
What Is Ethereum Classic and How Does It Work?
Ethereum Classic is one of the web3 cryptocurrencies, that is it supports products and services that make the web3 space keep going. Developers use it to build and deploy decentralized applications.
As the name suggests, the project has some links with Ethereum. It was separated from Ethereum over disagreements on how the ideal Ethereum should function. Like Ethereum, it also supports non-fungible tokens and other aspects of web3.
Ethereum Classic is kind of unique, in that it is a web3 platform that uses PoW consensus, a combination that is quite rare in the crypto space. It functions just like Bitcoin, relying on miners with their specialized computers to mine transaction blocks and help to secure the network.
In the process, miners are rewarded with new ETC, which adds to the circulation. ETC is the native currency of the Ethereum Classic network. It is used to pay for transaction fees and can be used for some form of governance of the network.
There are a maximum of 210 million ETC coins. Out of this number, only 148 million have been mined and are currently in circulation. The supply is relatively small, which makes Ethereum Classic not just a web3 network but also makes ETC a great potential investment for the future.
ETC is also used for payments like any other cryptocurrency. It can be used to transfer value from one person to the next, which is why it is accepted as a payment option by merchants.
What Is Dogecoin (DOGE) and How Does It Work?
Dogecoin is a memecoin, which is a class of cryptocurrencies that are known as joke cryptocurrencies. It was the first of its kind, and today is the biggest meme cryptocurrency by market capitalization.
Inspired by the popular Shiba Inu dog breed, the cryptocurrency was created after Bitcoin, but with no clear use case or real world use because it was only created for fun. Supporters of the project were mainly fans of Shiba Inu and nothing more.
Later, it started growing in popularity as billionaires like Elon Musk and Mark Cuban started supporting it. Musk played a huge role in bringing the cryptocurrency to limelight and making it rally to make investors rich.
The Dogecoin team however has been working hard to bring some real use cases to the project to retain its relevance. The current use cases include payments, with Musk’s electric car company Tesla being one of those accepting DOGE for some of its merchandise.
DOGE has an infinite supply that is more of them will continue to be mined. Currently, there are 145 billion DOGE in circulation, but there’s a burn mechanism in place to ensure that the supply continues to be regulated.
Which Is Better?
For whatever reason you want to use one of these two cryptocurrencies, Ethereum Classic is better. First, it is a web3 project that has a lot to offer to both developers and ordinary web3 users.
Secondly, its native currency, ETC, has a much smaller capped supply which makes it a better investment than DOGE with an unlimited supply. Unless you just love Shiba Inu and want to buy a related crypto asset, ETC is by far a better investment than DOGE.
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