Ethereum Classsic

What is Ethereum Classic (ETC)?

Ethereum Classic (ETC) is a distributed cryptocurrency platform that runs smart contracts and is open-source, decentralized, and based on the blockchain.

The breach of The DAO, an intelligent contract running on the Ethereum blockchain, the Ethereum community disagreed to compensate the affected network users. This led to the creation of Ethereum Classic in 2016. Most users chose to reverse the hack and return the stolen funds after the original blockchain split.

Basic understanding of Ethereum Classic (ETC)

Ethereum Classic platform is as same as the bitcoin platform, where it distributes and executes smart contracts on its own and record value transactions. Having decentralized governance in place, Ethereum Classic facilitate smart contracts without the involvement of a third party. If all the aspects inside the agreement are met, then the deal gets done.

Upon failing to meet the provisions of the agreement, then a fee or charge would be levied.

The Birth of Ethereum Classic

A Decentralized Autonomous Organization, or DAO, can be built with smart contracts. A DAO's administration and the dynamic contraption are classified and don't need human mediation. The German start up Slock launched "The DAO,"a project on Ethereum, in 2016. Hackers took advantage of a flaw in the project's smart contract, which had raised over $150 million through crowdfunding, resulting in a theft of $50 million in the process.

Most Ethereum users, including the company's founders Vitalik Buterin and Gavin Wood, supported either a hard fork or a significant alteration to the blockchain’s base protocol to recover the funds. Hence, the new Ethereum (ETH) chain was created.

However, a portion of the community continued to oppose the fork and chose to adhere to the tenet that "Code is Law." Therefore, they kept the old chain and renamed it Ethereum Classic (ETC), arguing that humans cannot manipulate blockchains.

The Ethereum blockchain consequently split into two distinct networks. The more recent network keeps the Ethereum name and uses ETH, or ether, as its currency. The older one, Ethereum Classic, makes use of ETC.

Concerns about Ethereum Classic

Competition

Ethereum is the following favourite just after the Bitcoin among the cryptocurrency investors in the market. The competition is huge for the Ethereum Classic market but the number of transactions it can perform is only limited to 15 as opposed to that of Visa which can deliver thousands of transactions in a second.

Limitation of Scalability

The potential scalability restrictions of Ethereum Classic are a significant source of concern. The network typically processes 15 transactions per second, significantly less than payment networks like Visa, which process more than 1,000 transactions per second.

Despite the numerous software upgrades that Ethereum Classic has endured, the scalability of its payment systems continues to be one of its most significant obstacles moving forward.

Security Issues

With smart contracts, security will likely be a problem for the foreseeable future, especially given that Ethereum Classic has already been hacked and millions of dollars stolen. These concerns could prevent Ethereum Classic intelligent contracts from being used in significant real estate and financial transactions.

The cryptocurrency market's regulations are still evolving, which may or may not alter the operation of Ethereum Classic and other networks. Due to their decentralized networks, for instance, Ethereum and Bitcoin are not considered safe by the Security and Exchange Commission (SEC).

What is the difference between Ethereum Classic and Ethereum?

Based on Functionalities

The fundamental functions of ETC and ETH are identical. For example, designers can use open-source code to create and run decentralized applications (dApps). They can also make ERC-20 tokens for their applications.

Based on Incompatibility

The Ethereum Classic's incompatibility with ETH blockchain updates is its primary distinguishing feature. A hard fork is, by definition, an update that cannot be used in the past. The new chain and its users (nodes) are entirely cut off from the original chain by implementing a new set of rules. As a result, updates on the new chain (Ethereum) cannot be accessed by the original chain (Ethereum Classic).

Based on Ideological

If ETC cannot be updated, then what purpose does it serve? As currently referenced, the groundwork of the Ethereum Exemplary is more philosophical than anything else. In other words, preserving the original, unmodified Ethereum code is its most significant relevance or significance. In this way, ETC is the Ethereum network's unaltered historical record.

Future of Ethereum Classic

Since Ethereum is regarded as the more legitimate of the two networks, especially considering the security concerns of Ethereum Classic, the future of Ethereum Classic appears less promising than that of Ethereum.

Due to system hacks, investors have lost faith in ETC. They can only redevelop its software and code to prevent future hacks, which may end up facing less difficulties that before.

However, how the smart contracts will be developed as part of the Ethereum Classic project and whether or not they will be able to be implemented for widespread use still need to be discovered.

Example: For instance, in a land exchange, assuming the agreement expressed that a forthright store would be paid on a specific date and the assets were not received, the agreement could be void. A network known as a blockchain or distributed ledger houses intelligent contracts. A ledger of contracts and transactions that are kept, maintained, and decentralized in various locations is known as a distributed ledger.

Within the smart contract, the buyer and seller's agreement is written in self-executing code depending on the contract's terms. Since the code determines how the contract is carried out, there is no need for a central authority to censor or monitor the outside world.

Conclusion

The Ethereum Classic coin has a long and contentious history. While still being used today with worth of 1 billion in everyday exchanging volume, it's eclipsed by the more standard Ethereum (ETH) fork and stays a speculative choice for financial backers. Despite this, Ethereum Classic is a well-established cryptocurrency that has overcome several challenges.

FAQs

Q1. Is Ethereum Classic a rival to the Ethereum platform?

Ans. Yes, Ethereum Classic is intended to contend straightforwardly against the Ethereum network by seeking an alternate way of improvement while utilizing a similar source code.

Q2. Is there a future for Ethereum Classic?

Ans. The scalability of Ethereum Classic could be much better. For example, it can deal with 15 exchanges each second. In comparison, the ongoing Ethereum framework can deal with 30 exchanges each second and will want to accomplish more than 100,000 exchanges each second from here on out.

Q3. Is Ethereum Classic still a good investment?

Ans. Ethereum Classic is regarded as one of the most profitable cryptocurrencies for long-term investments and has much potential. ETC is anticipated to expand further in the coming years and may reach new heights due to its distinctive technology and continuous development.