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What is Ethereum Classic and how does it work

Ethereum Classic is an open-source computing platform based on blockchain technology that supports smart contracts. It provides a fully decentralized Turing virtual machine, the Ethereum Virtual Machine (EVM), which can execute smart contracts using the international network of public nodes. The native digital currency of the Ethereum classic network is represented by the ETC abbreviation and is currently ranked number twenty-third on the market with $ 513 million at current market volume.

 

History of Ethereum Classic

Two years after the release of the initial version of Ethereum, the community of this digital currency decided to create an independent entity to invest and fund various digital currency projects. In May 2016, a bold investment fund called DAO (Decentralized Independent Organization) was set up to invest in projects using smart contracts and raised around $ 168 million initial capital.

That same month, an article was issued a warning of DAO security vulnerabilities that could steal digital assets. In June, 3.6 million ETH (approximately $ 50 million) was stolen from DAO accounts and transferred to other accounts without the consent of their owners due to existing vulnerabilities.

DAO members and the Ethereum community then discussed what to do to solve the problem if such a thing happened in the future. Voting took place and in July 2016 it was mandated to implement a hard fork into the Ethereum code and move the ethers to a new smart contract to compensate for the loss of users.

 

The Emergence of Ethereum Classic

Ethereum Classic came about when some members of the Ethereum community completely rejected the idea of Hard Fork and believed that it was not possible to change the blockchain and decided to use the same original version of Ethereum. At this time, the first block of EthereumClassic was produced by miners in block number 1,920,000 of the Ethereum chain on July 20, 2016.

The EthereumClassic ran a technical hardcover on October 25, 2016, to execute different code on the Ethereum virtual machine to reduce DDoS attacks. On the other hand, the hard fork that occurred in early 2017 was able to successfully delay the Difficulty Bomb. With the launch of this hard-core bomb on the Ethereum network, the mining hardness is greatly enhanced and the mining process becomes virtually inefficient and unprofitable.

With all the explanations given, the Ethereum Classic project is not formally supported by the Ethereum Foundation. It should be noted that the project issued a public statement on its Twitter account on June 29, 2017, stating that the domain of the Ethereum Classic Wallet website had been compromised. The Ethereum Classic team worked with Cloudflare to alert users and inform them about phishing attacks on the domain. In January 2019, Ethereum Classic was exposed to Double-Spending attacks.

 

How does EthereumClassic work

Ethereum Classic works just like Ethereum, although the Ethereum Classic (ETC) and Ethereum (ETH) prices are very different. The programming language of smart contracts in EthereumClassic is similar to that of “Solidity” ethereum, and there is a similarity in terms of timing, size, and reward of blocks.

This cryptocurrency is based on the PoW algorithm and smart contracts but does not share its compatibility or update with Ethereum-based codes. This means that no matter how much Ethereum goes out of proof of work and approaches proof of stock, this is not necessarily the case for Ethereum Classic unless developers develop them simultaneously and independently. Proponents of EthereumClassic claim that in the event of some hacking in the future there will be no obstacle for ethereum to run another hard fork.

 

Ethereum Classic (ETC) prices from the beginning until now

The EthereumClassic entered the digital currency market in mid-2016. Then 2017 was the year of rising prices for all cryptocurrencies, and classic Ethereum was no exception. ETC rose from $ 1.40 on March 1, 2017, to $ 23.01 on June 20, 2017. Also available statistical data show that the price of Ethereum Classic has grown by approximately 1,600% over the one year from July 2016 to July 2017, which is a significant figure

Ethereum Classic is a bright future-proof digital currency that is easy to invest and maintain. As more users buy ETC and more developers spend more time on decentralized apps (DApps) in the Ethereum Classic blockchain, more confidence in the platform will be achieved, and the final result will be an increase in the price of this cryptocurrency.

 

Advantages and Disadvantages of EthereumClassic Digital Currency

Advantages

Ethereum Classic has maintained honest to the original vision of what a blockchain should hold.

EthereumClassic has the potential to raise more potential for investors. Naturally, the project is a risky investment, but some of its influential backers, such as Barry Silbert from Grayscale Investment Trust, point to the bright future of this cryptocurrency.

Disadvantages

EthereumClassic does not have a community such as the Enterprise Ethereum Alliance (specialized for Ethereum) where all members of the community, including developers, researchers, and businesspeople, are present.

Its developer team is no longer the early developers of Ethereum, and there is a concern that this cryptocurrency will not adhere to its fundamentals.

Some experts believe the project is supported by those who generally oppose the Ethereum project.

 

Ethereum Classic Storage (ETC)

Like Ethereum, there are many options for choosing a digital wallet for storage, sending and receiving of EthereumClassic (ETC), some of which include:

  • Hardware Wallet: Trezor and Ledger Nano S
  • Software Wallet: Atomic and Mist
  • Mobile Wallet: Jaxx and Coinomi

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