Ethereum Classic vs Stellar

Table of Contents

1. Metrics
2. Detailed Comparison
   • Core Technology and Performance
   • Consensus and Security
   • Transaction Costs
   • Smart Contract Capabilities
   • Network Purpose and Use Cases
   • Founding and Development
   • Supply Economics
   • Development Activity and Community
   • Integration and Adoption
3. FAQs
   • Is Ethereum Classic faster than Stellar?
   • Is Ethereum Classic cheaper than Stellar?

Metrics

Detailed Comparison

Core Technology and Performance

Ethereum Classic (ETC) and Stellar (XLM) represent two distinct approaches to blockchain technology, each with unique performance characteristics:

• Transaction Speed
  • Ethereum Classic: 15 TPS
  • Stellar: 200 TPS

Stellar's significantly higher transaction throughput makes it more suitable for high-volume payment processing and financial applications. This 13x performance advantage over Ethereum Classic enables Stellar to handle larger scale operations, particularly in cross-border transactions and payment networks.

• Block Time
  • Ethereum Classic: 13 seconds
  • Stellar: 5 seconds

The faster block time of Stellar results in quicker transaction finality, providing users with faster confirmation times. This speed advantage makes Stellar more appropriate for real-world payment scenarios where immediate settlement is crucial.

Consensus and Security

The blockchains employ fundamentally different consensus mechanisms:

• Ethereum Classic
  • Uses Proof of Work (PoW)
  • KECCAK-256 hashing algorithm
  • No staking rewards
• Stellar
  • Uses Proof of Stake (PoS)
  • Stellar Consensus Protocol (SCP)
  • 1% staking rewards

Ethereum Classic's PoW system provides robust security through computational work, but at the cost of higher energy consumption. Stellar's PoS mechanism offers energy efficiency and allows token holders to participate in network security while earning rewards. This makes Stellar more environmentally sustainable and provides passive income opportunities for XLM holders.

Transaction Costs

The fee structures show a stark contrast:

• Ethereum Classic: 0.0001 ETC per transaction
• Stellar: 0.0000000085 XLM per transaction

Stellar's extremely low transaction fees make it particularly attractive for micropayments and frequent transactions. This cost efficiency is crucial for Stellar's mission of facilitating cross-border payments and financial inclusion. Ethereum Classic's higher fees, while still moderate compared to some chains, make it less suitable for very small transactions.

Smart Contract Capabilities

Both chains support smart contracts, but with different approaches:

• Ethereum Classic

  • Full EVM compatibility
  • Mature smart contract ecosystem
  • Traditional Solidity programming

• Stellar

  • Non-EVM architecture
  • Focused smart contract functionality
  • Specialized for financial operations

Ethereum Classic's EVM compatibility provides developers with a familiar environment and extensive tooling. This makes it more suitable for complex decentralized applications. Stellar's smart contracts are more specialized, focusing on financial operations and asset transfers, making them more efficient for specific use cases but less versatile overall.

Network Purpose and Use Cases

The chains serve different primary purposes:

Ethereum Classic:

• Decentralized computing platform
• General-purpose smart contract execution
• DApp deployment and hosting
• Digital asset creation and management

Stellar:

• Cross-border payment network
• Currency exchange and bridging
• Financial institution integration
• Remittance solutions

Founding and Development

Both projects have notable origins:

• Ethereum Classic

  • Founded by Vitalik Buterin
  • Emerged from the original Ethereum blockchain
  • Maintains original blockchain principles
  • Community-driven development

• Stellar

  • Created by Jed McCaleb
  • Purpose-built for financial operations
  • Institutional partnerships focus
  • Structured development through Stellar Development Foundation

Supply Economics

Both chains have interesting approaches to token supply:

• Neither has a maximum supply cap
• Different distribution mechanisms
  • ETC: Mined through PoW
  • XLM: Pre-mined with controlled distribution

The unlimited supply in both cases serves different purposes:

• Ethereum Classic uses it to maintain mining incentives
• Stellar uses it for network operation and development funding

Development Activity and Community

Both chains maintain active development communities:

• Ethereum Classic

  • Strong GitHub presence
  • Community-driven development
  • Focus on maintaining original Ethereum principles

• Stellar

  • Regular protocol updates
  • Strong institutional partnerships
  • Active developer ecosystem
  • Regular Medium blog updates

The development approaches reflect their different goals: Ethereum Classic maintains a decentralized, community-driven model, while Stellar takes a more structured approach with clear institutional focus.

Integration and Adoption

The chains show different patterns of adoption:

Ethereum Classic:

• DApp developers
• Cryptocurrency enthusiasts
• Traditional Ethereum developers
• Mining communities

Stellar:

• Financial institutions
• Payment service providers
• Cross-border business operations
• Remittance services

These adoption patterns align with their respective strengths and target markets, with Ethereum Classic focusing on decentralized applications and Stellar on financial services integration.

FAQs