In this Article
At a Glance
Block reward: 4 ETC
Initial release date: 30 July 2015
Ticker symbol: ETC
Hash function: Ethash
Operating system: Clients available for Linux, Windows, macOS, POSIX
Timestamping scheme: Proof-of-work
Definition of Ethereum Classic
The Ethereum was created in the year 2013 with an aim to perform all those functions which bitcoin was unable to do. In other words, it was not merely built as a cryptocurrency but also as a hub which can be used by the users to code, operate and execute the smart contacts and decentralized applications as well. The history of Ethereum and Ethereum classic is something which shall be most pivotal in the history of cryptocurrency.
In June 2016 an anonymous hacker stole about $3.6 million Ethereum coins which resulted in the diversion of the cryptocurrency in two paths. The Ethereum was a popular cryptocurrency but its controversial history lead to the creation of the Ethereum classic (ETC). The development team had to come up with some solution and hard fork was the proposed solution. The hard fork allows the team to introduce a change in the code of the blockchain. This change in the blockchain code will make the block either valid or invalid. The users are also required to upgrade to the new and updated version if they wish to further use the blockchain platform.
Features of Ethereum Classic
- Just like the other cryptocurrencies, the Ethereum classic is also a cryptocurrency which is based on a decentralized blockchain technology. It is also an open source and a public platform. The cryptocurrency token of the Ethereum classic is known as Ether Classic (ETC). The Ethereum classic can also be used to conduct the transactions by using smart contracts and operate decentralized applications like Ethereum.
- The blockchain code of the Ethereum token and this included the tokens which were stole was altered. The change in the blockchain code of the stolen tokens made them unusable. The original amount of the Ethereum tokens which have been invested by the users was returned to them through new smart contracts. The blockchain of the Ethereum was changed forever.
Benefits of the Ethereum Classic
- The Ethereum classic just like the Ethereum can be used to run the smart contracts and decentralized applications. The smart contracts are automatically executed after all the terms and conditions are fulfilled and the parties which are involved are not able to change it.
- The transactions which are made by using the Ethereum classic (ETC) can always be converted to the fiat currency accordingly. All the transactions which are processed and information which is entered by using the smart contracts and decentralized applications are stored permanently. This information is stored on ledgers and in nodes on the blockchain and can neither be changed nor deleted and is available for everyone to see it.
Drawbacks of the Ethereum Classic
- The corporate application to which the Ethereum classic could be applied is quite limited in terms of the smart contracts and decentralized applications. The Ethereum classic is not in much use. The new code used in Ethereum makes it easy and safe to use, while the old code is used in Ethereum classic and it had resulted in the hacking of the tokens.
- The Ethereum classic is majorly used in mining and smaller contracts. It is not largely used in carrying out large scale transactions.
- The major drawback, however, is that the ETC is not backward compatible and more people are using the Ethereum now. Since the Ethereum classic is not backward compatible, it means that the cryptocurrency will not be able to enjoy the new updates on the Ethereum platform.
How is the Ethereum Classic different from the other Cryptocurrencies?
- The Ethereum classic is used as a platform which can be used to develop and run the smart contracts and decentralized applications, unlike the bitcoin which is a blockchain platform for transaction based on the peer-to-peer technology.
- The information which is entered in the smart contracts cannot be modified without all the parties consenting to it and can be executed as soon as all the terms and conditions are fulfilled. Thus the smart contracts are more suitable for people who are required to perform some remote services.
- The decentralized applications can be used to create blockchain communities and use the Ether classic as the token. This can further be exchanged for the fiat currency accordingly.
- All the transactions, information, and activities are stored in ledgers permanently and can also be accessed by everyone and not only by a single server.
Difference between ETC and ETH
The ETC has value in the cryptocurrency market because of the speculation factor like the various other altcoins in the market. Whereas the ETH has value due speculator market and community support as well. The power majorly resides with the Ethereum (ETH) because it has a market cap of $15 billion while the Ethereum classic (ETC) has a market cap of around $1.5 billion.
Future of Ethereum Classic
The Ethereum classic is still in the process of development in order to give tough competition to the Ethereum. A large number of the user does not wish to lose the original Ethereum and hence continue to keep the ETH circulation. It will still not be safe to invest in it because the development team is still working to make it more popular.