What is Ethereum Classic (ETC)?
Future of ETC Cryptocurrency and know how to buy ETC
#1: What is Ethereum Classic?
While Ethereum is the hugely popular cryptocurrency that dominates both the markets and crypto news in general, it’s got some controversial history to it that many new investors stepping into the crypto word may have missed out on. We give to you, Ethereum’s estranged cousin - Ethereum Classic.
Ether Classic: The Basics
- Ethereum Classic, like most other cryptocurrencies, is a platform based on decentralized blockchain technology, making it a public, open sourced platform. It is fueled by its cryptocurrency, called Ether Classic (ETC). Much like its popular counterpart, Ethereum, it can be used to run Decentralized Apps (DApps) and perform transactions using Smart Contracts.
- Ethereum Classic’s conception was a result of the flaws in the DAO (Decentralized Autonomous Organization) which was formed by the group of investors looking to use Ethereum’s Smart Contract technology. With the DAO’s rising popularity, the stakes were high, with funds locked in the DAO contract for use by the organisations. However, in June of 2016, a hacker stole about 3.6 million of the ETH present in the funds, causing a massive uproar throughout the community. The news dealt heavy damage to the then nascent cryptocurrency industry. The Ethereum team, including its founder, Vitalik Buterin, had to look for solutions.
- The solution proposed was a ‘Hard Fork’ - where a radical change is introduced into the blockchain code, which makes the blocks either invalid or valid, and requires the users to upgrade to the new versions should they want to continue using the blockchain. In simpler (but less accurate) terms, think of it as the entire Ethereum community going back to an older point in their blockchain where the funds had never been stolen, and then patching the DAO vulnerability to not the let hack happen again.
- Thus, the code of Ethereum tokens (including the ones which were stolen) was changed, rendering the tokens stolen unusable. The original amount of tokens invested was returned to the investors via a new Smart Contract, and the code of the ETH was changed forevermore.
- However, the move caused fresh controversy. Some people argued, and perhaps rightly so, that ‘Code is Law’ and that the law could not be changed to suit the interests of a few organisations. They broke away from the Ethereum community, and continued using the old code of the Ethereum, renaming it Ethereum Classic. The token is being kept alive by many who believe in using the untouched version of Ethereum, and consider the untampered, completely decentralized blockchain network, along with irreversible Smart Contracts to be its strength.
(Price impact after the DAO Hack)
#2 - What are the Benefits of Ethereum Classic?
Much like Ethereum, Ethereum Classic finds its use in the Smart Contracts and DApps. Smart Contracts run on Ethereum Classic’s blockchain technology, and can be used to preset terms and conditions. The contract is executed automatically once the conditions are met, and the parties involved cannot change it. Similarly, Decentralized Apps (called DApps), which can be run using the Ethereum Classic system, use ETC as the local token.
Transactions on Ethereum Classic can be made using ETC, which can then be converted accordingly to fiat currency. All transactions made, and the information entered using the Smart Contracts and DApps are stored in the nodes and ledgers of the blockchain, and instead of residing with one particular individual, they are available for everyone to view. This information is stored permanently, and can neither be deleted nor modified.
#3 - How to Buy and Store Ethereum Classic
- Ethereum mining is done using Geth, a program that acts as an intermediate between the Ethereum Network and the computer. Mining software such as Ethminer and Genoil can also be used to mine ETC. ETC can also be bought on many popular exchanges such as Bittrex, Cryptopia, OKEx and more.
- Storing Ethereum Classic may turn out to be a bit of the problem, as not many wallets support the storage of ETC. However, a few wallets such a Ledger, Trezor, and Coinomi, amongst others, can be used to store ETC, as well as ETH. As ETH is more in use as compared to its older version, finding wallets which are popular to store ETC is becoming quite hard.
- One of the better ways to buy ETC is using CoinSwitch, best cryptocurrency trading platform which allows you to compare various exchange rates for exchanging the already owned cryptocurrencies with ETC, and vice-versa. This allows the trader to be able to choose the best possible option. It also allows the user to store cryptocurrencies in their own wallets, enabling them to withdraw and use it anytime, and not be dependent on CoinSwitch.
#4 - What is the Future of Ethereum Classic?
Also Read: Complete Analysis of Ether Classic | Live Ether Classic (ETC) Price Charts And Predictions
- Ethereum Classic is largely overshadowed by Ethereum, and only used by the few who wish to maintain the integrity of the original Ethereum. It began spectacularly however, by trading at $0.17 in 2016 to over $40 within just 2 years - generating over 235x returns for its investors. A very impressive number indeed!
- However, it has not lost its enigma, as according to Cryptorecorder, it is the 15th cryptocurrency by market capitalization. The Ethereum Classic team is working to make the network safer and bring out new innovations to make it more appealing to the users. While Ethereum Classic may well be on its way to popularize, however, it may not see any big changes anytime soon.
#5 - How is Ethereum Classic different from other cryptocurrencies?
- Unlike Bitcoin, which is based on peer-to-peer transaction, Ethereum Classic, the ‘parent’ of Ethereum, is used as a network, on which Smart Contracts and DApps can be built.
- Smart Contracts are much of use to those who perform remote services, as the information entered in the Smart Contract cannot be changed without the consent of all parties, and it executes as soon as the conditions are met.
- DApps can be used to create certain communities which can use ETC as the token, which can be exchanged for Fiat currency.
- In addition, due to the underlying blockchain technology, all the information, activities, and transactions are stored permanently in ledgers, and can be accessed by all, and not just a single server.
#6 - Should you invest in Ethereum Classic?
Support & Regulation
- Corporate usage of Ethereum Classic is quite limited. As opposed to Ethereum, which has a much wider corporate usage in terms of using decentralized systems and Smart Contracts, Ethereum Classic is not much in use; the new code of Ethereum makes it safer to use, as compared to the older code which is used in Ethereum Classic, which had resulted in hacking.
- Ethereum Classic, while not obsolete, is used by those who want to use the original Ethereum code before the hard fork. It finds its applications mostly in smaller contracts and mining, and not in large-scale financial transactions.
- Ethereum Classic is still in the process of being ameliorated to be able to compete with Ethereum and other cryptocurrencies. The reason it is yet alive is because a large number of users do not want the original Ethereum to get lost, and continue to keep it in circulation.
- While the team behind Ethereum Classic may yet come up with new ideas for popularizing Ethereum Classic, it is not yet safe to invest a large amount. Investing small amounts may still lead to good returns in the future; however, the currently preferred network which can run run Smart Contracts and DApps is still Ethereum, for the foreseeable future.
There are a few questions which are plaguing the mind of every individual invested in the world of cryptocurrencies. Will Ethereum Classic be overtaken by Ethereum? Will it be more used in future? Is it possible it will soon become redundant? Only time will tell.