What Is Ethereum Classic
Ethereum Classic (ETC) was originally created under specific circumstances in 2016, where the protocol forked from the Ethereum mainnet due to a $60 million hack of a project known as “the DAO,” which was an early decentralized autonomous organization.
Prior to the launch of Ethereum Classic, developers released new cryptocurrencies through the processor of simply copying as well as modifying existing cryptocurrency software. They can also write new software from scratch. Ethereum Classic, on the other hand, was created by people who simply didn’t want to upgrade to Ethereum (ETH)’s new code.
Here’s the story, the code would edit Etheruem’s transaction history and return the cryptocurrency Ether to the people that lost the funds in “the DAO” situation. However, while the majority of Ethereum users upgraded their software, a minority continued to maintain the older Ethereum software with the record of the theft. Due to the fact that they carried on running this code, they created a new cryptocurrency, and this cryptocurrency is what we know today as Ethereum Classic.
Ethereum Classic Founders
Ethereum Classic can be seen as the legacy chain of Ethereum. The creators of Ethereum classic, when seen from this perspective, are the creators of the original Ethereum blockchain, which are Vitalik Buterin and Gavin Wood.
However, developers state there is no official team working on the project and that its global development community is a permissionless one where anyone has the opportunity to participate in it.
How Does ETC Work
While Ethereum and Ethereum Classic, at one point in time, were based on the same code, Ethereum Classic has taken a different path ever since. The community has carried on using proof-of-work (PoW) as a consensus mechanism to secure the blockchain. Ethereum Classic also adopted a fixed monetary policy, and the total amount of ETH that can be created is capped at 230 million ETCH, which adds to its scarcity.
However, the main intention of Ethereum Classic is to preserve the Ethereum blockchain as it originally used to be, without countering the DAO attack that occurred at the time. Its appeal was to those who disagreed with the response Ethereum took to the attack; however, this legacy network, over time, has gained a larger fan base with major investors.
The developers of ETC do not really aim to turn the network into an entity through which they can profit out, and users pay for transaction fees with Ethereum, while miners collect them based on the work they do through the proof-of-work (PoW) mining algorithm.
Unlike Ethereum, Ethereum Classic has no plans to convert to the proof-of-stake (PoS) mining algorithm. However, developers are working towards improving the scaling solutions that can be implemented.
So here is how you can look at it. Ethereum Classic is this open-sourced, decentralized as well as blockchain-based distributed cryptocurrency platform that runs smart contracts. It emerged as a split version of Ethereum’s blockchain as a result of a hack, where the newer version of Ethereum was created, but this older one carried on life.
The Ethereum Classic price is different from the non-Ethereum Classic blockchain, simply named EThereum. Classic Ethereum can be bought with fiat currencies and can run decentralized applications. It was the result of a hard fork; however, it is available on many cryptocurrency exchanges, and the chain has its own coin, and this coin is known as ETC that helps in the control and continuation of the blockchain while providing the network a high level of dominance. This hard fork is a noteworthy one, and it has re-shaped this Ethereum blockchain as a result.
However, it has gotten a reputation as the lesser legitimate option of the two networks. It has limitations when it comes to scalability, and the network can only handle 15 transactions per second. Security is still an issue when it comes to smart contracts due to the fact that Ethereum Classic has already experienced a hack as well as the theft of millions of dollars, and this might prevent the contracts from being used in major financial transactions, which will lead to a lesser level of mass adoption.
Regulations of the cryptocurrency market also develop on a regular basis, and this has the potential to change Ethereum Classic’s level of operation in the future.
However, you need to be aware that Ethereum Classic is currently the underdog to Etheruem, so its future might not be as shiny. There is a community that loves the blockchain and has a genuine belief that it can one day evolve into something even better than Ethereum, even despite its history of hacks. There is something noteworthy about staying strong after such a massive attack and theft; however, that just showcases the user’s confidence within the blockchain despite the fact.
Where Can You Buy ETC
If you want to buy, sell, or trade Ethereum Classic you can do so on Binance Futures, Upbit, CoinBene, Latoken, DigiFinex, and Binance. For more information check out our guide on how to buy Ethereum Classic. Remember that you can buy it using fiat currencies.