Ethereum Classic, ETC for short, is presented as a decentralized blockchain platform with the current cryptocurrency ETH – the classic “ether.” The system uses smart contracts and was created as a result of a hacker attack. What are the features of this cryptocurrency and does it have prospects?
- What is Ethereum Classic cryptocurrency?
- Who created ETC and when?
- Features: advantages and disadvantages.
- Where to store?
- How to mine Ethereum Classic?
What is Ethereum Classic cryptocurrency?
Ethereum Classic is a secure decentralized platform, through which you can create and maintain the execution of dApps (decentralized applications). This was the fundamental principle of the original Ethereum. The size of the new platform compared to Ethereum is not as large, and this fact can be decisive when developers choose a platform for running applications.
Support from the miners’ communities is quite strong, and it is thanks to them that the cryptocurrency price can be maintained and it can remain decentralized. Given the market capitalization, Ethereum Classic is among the top 50 cryptocurrencies.
Who created ETC and when?
Previously, there existed only one Ethereum network, and numerous investors were actively investing in it financially. The story of Ethereum Classic begins with a hacker attack that resulted in a third of the financial assets being stolen. Since withdrawals are possible after the 28-day deadline, the developers of Ethereum had time to solve the problem and return the funds.
To realize this, it was decided to change the blockchain, but this move was perceived negatively by a great number of community members, as they were convinced of the need to leave the blockchain secure and therefore not to change it. The division of opinions resulted in the formation of two blockchains from the original platform – Ethereum Classic and Ethereum, as the opponents of the mentioned decision continued to use the old blockchain for mining. After the fork, there was a doubling of investor funds. The technical hardfork of Ethereum Classic occurred on October 25, 2016.
Among the developers of Ethereum Classic there are two teams – Grothendieck and ETCdevteam, whose activities are also aimed at creating projects based on the platform in question. The new cryptocurrency in a very short period of time entered the top ten ranking of cryptocurrencies, the account of the system in Twitter is actively updated, the presence of an active community Reddit is also pleasing. All these factors together with the high activity on Github indicate that the project is really actively improving and developing.
Understanding the features of the new cryptocurrency is only possible when comparing it to the original Ethereum.
- The modifiability of the blockchain is a key feature. The contracts and blockchain record of regular Ethereum can be changed with the consent of the majority. Classical Ethereum cannot be changed, a fact that raises high expectations because it is a virtual financial system.
- Changes can be made by anyone in the community, but the decision in the case of the original cryptocurrency is made by the Foundation, and in the case of classic cryptocurrency, the feedback of the community and the three teams comes into play. The work of these teams is not at its best yet, but given the prospects of the currency’s development, this problem will definitely be corrected.
- The idea of interoperability is the third factor that highlights another feature of Ethereum Classic. Both blockchains are compatible with each other, but in the case of the classic cryptocurrency, it is the secure contracts that are emphasized. The sacrifice in this scenario falls on the common base of available developers, but the quality of the currency is not negatively affected. The original currency put security on the back burner, while the main focus was on targeting eWASM, which means that only a limited number of developers could open their own platform.
- The block of the classic coin has a small capacity, so there is a lot of space left over. However, due to the growing popularity of this currency, we should not expect the situation to remain this way forever.
- The block is processed in 25 seconds, reducing the time when using Ethereum Classic to 14 seconds, potentially reducing it to 10 seconds.
- The unit under consideration is profitable as an investment object. The convenience of investing lies in the presence of “Ethereum Classic Investment Trust”, which makes it convenient to invest even if you do not have the underlying assets.
Analyzing the history of the formation of Ethereum Classic and the main features of this cryptocurrency, it is worth highlighting its main advantages:
- ideological fidelity;
- active development;
- The support of many major players.
There is no backward compatibility of the new cryptocurrency with the Ethereum hard fork, and that is the main problem of ETC. The new blockchain is preferred by many community players, hence, the updates released for Ethereum are no longer available to them. Other so-called disadvantages of the blockchain, however, can be easily challenged.
- Violation of the principle of blockchain immutability. While this statement is true, special circumstances should not be overlooked. Due to the hacker attack, 14% of the world’s Ether stock could have been lost and urgent action had to be taken to restore justice. It was the hard fork that remedied the situation by devaluing the Ether in the accounts of the attackers. Moreover, every DAO token holder was able to receive compensation.
- An increase in the number of hard forks in perspective. This fact is not justified due to the democratic and decentralized nature of the Ethereum community. Such important decisions are not made without majority consent.
Where to store?
It is possible to store the Ethereum Classic directly on the exchange, but using an appropriate cryptocurrency wallet is a smarter and safer choice. Among the available options are the following:
- Ethereum Classic Wallet – a convenient and easy-to-use web wallet;
- Ledger Nano S – presented as a hardware wallet;
- Jaxx Wallet – available for many browsers and operating systems;
- Classic Ether Wallet for Chrome;
- Classic Ether Wallet web wallet, a variation of MyEtherWallet;
- My Ether Wallet is an open source web wallet;
How to mine Ethereum Classic
Interest among miners in Ethereum Classic was caused by a simpler mining process compared to Ether or Bitcoin. Moreover, according to the developers, Ethereum will switch to a PoS algorithm in the foreseeable future, which will make it impossible to earn money by mining it.
You can get by with a home power outlet and an inexpensive mining farm without spending a lot of money on premises and equipment to mine ETCs. To calculate the profitability of your business in advance, use the What To Mine website.
You will need 5 basic things:
- A farm to mine on the Ethash algorithm. Actually, you can also mine on a regular PC, but a specialized farm makes more profit.
- As cheap access to electricity as possible.
- Mining software.
- Mining pools.
- A wallet for withdrawing remuneration (ETC wallets were mentioned above).
What are pools? These are communities of miners, presented in the form of special servers. The whole community works on closing blocks, and if successful, the reward is distributed among its members. Compared to solo-mining, this method is less profitable, but much more reliable. Therefore, for small miners, pools are practically the only real money-making option. Among the recommended pools for mining:
Without knowing the key technical aspects, you should not start mining the cryptocurrency.
The value of the Ethereum Classic is now at $41. There is every reason to believe that ETC is expected to grow in the future. The last sharp jump was observed in March 2022 – from $25 to $49.
To summarize, it is worth comparing Ethereum and Ethereum Classic in the end. Ether is the largest cryptocurrency, which enjoys great confidence of all crypto market players, despite the hacker attack that occurred in the past.
The situation with Ethereum Classic is different – many people after the hardfork predicted the final extinction of this coin. But now it’s obvious that in any case it won’t disappear from the market and there is a clear growth potential. ETC has its advantages: a loyal community united around the principle of “Code is Law” and greater democracy. It is possible that in the future the development paths of both coins, which grew from the same root, will diverge more and more.
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