Ethereum Classic

One of the characteristics of cryptocurrencies is that they run on open source software.

With open source software, the community develops and collaborates to maintain the code. It is shared publicly and is not owned by a single person or company.

Compare this philosophy with the approach of Big Data giants like Google or Facebook, which create proprietary code that cannot be shared publicly. The open nature of crypto makes it possible that the blockchain can be “breakable”. This is when the crypto community decides to make major changes to the codebase, which leads to the separation of the crypto blockchain and the community that supports it.

Ethereum Classic was developed from a fork of the original Ethereum blockchain. Like many other blockchain forks, ETC was created because of the idea and technology division in the community.

After the fork, the ETC and ETH blockchains included the previous blocks, but they changed in the future. Ethereum and Ethereum Classic may have shared the same past, but they are two different cryptocurrencies.

The beginning of Ethereum Classic

Slock.it, a German company, created a “DAO”, an autonomous company or DAO scheme on Ethereum, in 2016.
Although the project received more than $150 million from crowd funding, the runners took advantage of the contract and stole $50 million. Most Ethereum users, including creators Vitalik Buterin and Gavin Wood, chose a hard fork, or a major change in the blockchain-based protocol, to recover the assets from the establishment of a new Ethereum chain. .
However, some members of the community opposed the fork, preferring to follow the principle of “Code is Law” and stay with the old chain, calling it Ethereum Classic. They often refer to Ethereum Classic as the “first” Ethereum coin, as it preserves the old Ethereum blockchain code as it existed before the DAO attack.

The difference between Ethereum and Ethereum Classic

Although Ethereum and Ethereum Classic started out using the same code, Ethereum Classic has now changed the protocol to distinguish them. However, a significant difference between the two is that the Ethereum Classic community is committed to continuing to use Bitcoin’s proof-of-work mining system.

Ethereum uses proof of work as of 2020, but its developers are working towards a future where this will no longer exist. In addition, Ethereum Classic offers a stable exchange rate. The most mined ETC is 230 million, which means that scarcity plays a role in determining its value.

Purpose of Ethereum Classic

The Ethereum Classic project has seen many changes and additions since the split.

The goal of this project is to create a global payment network based on smart contracts that can work without a central authority. Ethereum Classic, like other cryptocurrencies, will tend to be a digital store of value, meaning you can store and trade it while retaining its value.
The digital market value of crypto includes purchasing power, which can be easily converted into money or used to buy something else, like money.

Why was Ethereum Classic created?

The original Ethereum blockchain launched a complex smart contract called a Decentralized Autonomous Organization (DAO), a digital currency designed to support dApps. In any case, anyone who wants to say which dApps to pay through the Ethereum platform has to buy DAO tokens using Ether. Having a DAO token means you are now part of the DAO smart contract. For the dApp to receive the necessary funds, it needs 20% of the votes from the DAO token holders.

The flexibility and transparency of this smart contract allowed Ethereum to sell $150 million dollars of DAO tokens in a few weeks. Once you buy a DAO system, exiting is a bit tricky and has holes. Using the Split feature, you will be able to get your Ether back, but you are not allowed to withdraw it for 28 days. In June 2016, a hacker using a loophole stole a third, or about $50 million worth of Ether from people trying to get out of the DAO.

To solve this problem, many of the Ethereum community, including its developers, agreed to create a hard fork. This will allow the blockchain to go back before the hack happened, allowing them to recover the $50 million that was stuck in the system and return it to the people. And this is where the split of opinion happened.

Some people in the Ethereum Foundation do not agree with this process and see it as a central authority that undermines the integrity of the code and the ethics of broadcasting. They decided to continue using the original blockchain instead of the update.

How does Ethereum Classic (ETC) work?

Ethereum Classic, like Bitcoin, relies on a verification system called Proof of Work to verify transactions. Miners are responsible for maintaining network security by processing transactions and creating blocks using their resources. Every transaction on the network must follow a time series. It is done by miners solving computer puzzles to create blocks, which work as a security mechanism for the network.

One of the best features of Ethereum Classic is the ability of network participants to execute smart contracts. Smart contracts are predefined contracts written as lines of code that fulfill their terms and conditions. In addition, since the system is independent, no one else, such as a lawyer, is required to arrange the transaction between the buyer and the seller. To ensure the security of its blockchain, Ethereum Classic has engaged in the use of proof-of-work mining, it will not involve any changes in the Ethereum network.

Where you can buy Ethereum Classic (ETC)

Although not the most popular cryptocurrency, Ethereum Classic (ETC) is one of the most promising altcoins in the market. Although you can buy ETC with fiat currency, such as USD or EUR, you can also buy this digital asset with bitcoin. Another option is Ethereum: a popular blockchain network that supports smart contracts and other distributed applications (DApps), and ether – another form of cryptocurrency used as fuel for DApps.

If you want more privacy, there is Litecoin. This cryptocurrency was created in 2011 by Charlie Lee and has gained popularity over time because of its fast transactions compared to Bitcoin transaction time which takes 10 minutes compared to three seconds for Litecoin transactions through the Lightning Network platform.

Where users can send payments instantly without worrying about the fees charged because no mining is necessary since everything happens in seconds instead of minutes Bitcoin mining needs people who want assets like coins. prepaid electricity.

However, these days some companies have started paying, so make sure before sending money through them to check if they charge before paying any fees, although not all companies do. such debt. Sometimes they can appear as normal and then disappear after some time, we recommend you to buy some money from other sources where there is no charge, but situations like that happens frequently these days.

The Future of Ethereum Classic

Given the history of cryptos and hacks that have split them apart, investors have looked to ETH as a safe haven for features such as smart contracts, and ETC as a store of value.

Changes in Ethereum after the DAO hack helped solidify this idea; In contrast, over the years, Ethereum Classic has seen many attacks called 51%. In this process, malicious actors control much of the ETC’s working power – and can spend money they don’t have, in what is known as a double attack.

This positive sentiment pushed ETH to become the #2 crypto by market capitalization, trading at around $1,777 in June 2022. The price of Ethereum Classic is very different, at around $21 per month.

Advantages of buying Ethereum Classic

Ethereum Classic was developed from the remnants of the old Ethereum chain. So there is an impact on ETC and the Ethereum community. The classic version of blockchain is similar to Bitcoin in that coins are created all the time. This arrival is only 210 million, of which more than half have already existed. The new Ethereum 2.0 upgrade will not have a mining option.

Smart contracts can be used on the ETC blockchain. On the other hand, the new exchange of Ethereum, as the evidence shows, does not get it.

Although both coins started at the same point, ETH made new highs. It is even accepted for trading in the futures market, a privilege that only Bitcoin has enjoyed for a long time. On the other hand, ETC is worth $64, a 10,000% growth from its launch in 2016.