Perhaps you already knew that there is another version of Bitcoin called Bitcoin Cash . But did you also know that there are multiple versions of Ethereum . Ethereum Classic is one of these versions. In fact, this is even the original Ethereum, hence ‘Classic’ in the name. In this article we explain what it is and how this blockchain and crypto currency work.
- 1 What is Ethereum Classic (ETC)?
- 2 Ethereum Classic Team and Partners
- 3 How does Ethereum Classic work?
- 4 The Future of Ethereum Classic
- 5 How can I buy Ethereum Classic (ETC)?
- 6 How do you store Ethereum Classic (ETC)?
- 7 Is it smart to invest in ETC?
- 8 What are the benefits of Ethereum Classic?
- 9 Can Ethereum Classic be used anonymously?
- 10 Ethereum Classic (ETC) Price
- 11 How safe is Ethereum Classic?
What is Ethereum Classic (ETC)?
Ethereum Classic is considered the fork of Ethereum. In reality, Ethereum is a fork of Ethereum Classic. The fork took place after the hack of TheDAO on June 17, 2016. While the startup Slock.it raises more than $200 million, partly in Ethereum, a hacker manages to embezzle some of that money.
The fork intervenes to go back and thus divide the blockchain into 2 different entities, allowing the contributors to be refunded. As a result, a second Ethereum blockchain is emerging, backed by all the big names in Ethereum such as Vitalik Buterin. Ethereum Classic is thus the original Ethereum blockchain, hence the word “Classic”.
One of ETC’s mottos is “unchangeable”, meaning that it is impossible for the blockchain to change. For the contributors of Ethereum Classic, come what may, there should be no turning back. No one should be able to make changes, whatever the cause. While the majority of people have switched to Ethereum, including Vitalik Buterin and Gavin Wood, some people have stayed with the original blockchain mainly for ideological reasons.
The modification of the Ethereum blockchain as a result of a single hack shows that it can be compromised by human action. It is also important to point out that fraudulent ethers are still present on the Ethereum Classic blockchain, which tends to make people who support ETC look like scammers.
Ethereum and Ethereum Classic have a common goal, only their visions differ. That is exactly why we currently have two different Ethereums.
Ethereum Classic Team and Partners
The Ethereum Foundation does not support Ethereum Classic. The team consists of many entities. So there are 5 entities collaborating on the development of Ethereum Classic:
- ETCDEV is the first of them, it is composed of developers and engineers who work on the research and development of the ETC blockchain.
- IOHK is the second, it is more specialized in Mathematics.
- ETC COOPERATIVE is the team in charge of developing the ETC ecosystem and marketing it.
- ETC LABS is a laboratory where many innovations for ETC are tested.
- Ethereum Commonweath is working on many blockchain projects and is responsible for the Classic Ether wallet.
There are currently no partnerships between major organizations and Ethereum Classic. It is also not clear whether this will happen in the future.
How does Ethereum Classic work?
The immutability of the blockchain is one of the key points of ETC. Whatever happens, the ETC blockchain must not be changed. Once something has happened, it is (almost) unthinkable to return: “code is law”.
ETC uses the Ethereum Virtual Machine (EVM) which can execute scripts, smart contracts, dApps.
The capabilities of Ethereum Classic are largely similar to those of Ethereum. ETC makes it possible to transfer value to other people, as well as execute smart, automatic and complex contracts that cannot be changed or censored. The specifics of the duration, size and rewards of the blocks are almost identical.
The desire to focus on the IoT (Internet of Things) has been clearly announced. The goal is to become an efficient way to connect many devices around the world to exchange value and contracts.
One of ETC’s problems is the lack of compatibility with its fork: Ethereum. While the majority of the community, and thus developers, have moved on to this new blockchain, ETC is no longer compatible with ETH updates. Indeed, while ETH will gradually switch to PoS ( proof of stake ), ETC will continue to evolve in proof of work (PoW).
Running a node on ETC allows the blockchain to remain 100% decentralized with a P2P network. The main role of a node is to connect with others to upload and synchronize data. Here are the softwares you can use to run a node:
Ethereum Classic uses a Proof-of-Work (PoW) consensus. Miners solve complex mathematical calculations to create new blocks. If you want to mine ETC , you can join one of the following mining pools:
- 91 Pool
- ETC-Pool Crypto
- 2 miners
The Future of Ethereum Classic
Ethereum Classic is quite an old blockchain, considering it is also the first Ethereum version. However, there are many developers who are working on this blockchain, and therefore it has a bright future ahead of it. However, it is quite unclear what the actual future plans are for this blockchain.
It is important to do good research yourself into the future of a blockchain before investing in the coin or token of the project. The roadmap determines what the future will look like, and what the chances of success are. Does a project have absolutely no idea what they want to do in the future? Then there is a good chance that the success rate is much lower. Therefore, always pay attention to this before you decide to invest in Ethereum Classic.
How can I buy Ethereum Classic (ETC)?
The ETC token is currently in the top 100 cryptocurrencies by market capitalization and has excellent liquidity. It is available for purchase and exchange on a wide variety of cryptocurrency exchanges, including platforms such as Coinbase Pro, Binance , Huobi Global, and Bitvavo , as well as the popular decentralized exchange Uniswap .
Despite the fact that it is for sale on many exchanges, it is not always wise to buy this on any arbitrary exchange. We recommend using Binance or Bitvavo. Why? Because these two crypto exchanges have high liquidity, which allows you to buy and sell ETC for the best price. In addition, these two exchanges have already proven themselves in terms of security.
Of course it is also possible to buy ETC on a decentralized crypto exchange , such as Uniswap or Sushiswap . However, this is not always wise. You have to go through many more steps when you use a DEX. This means that the chance of things going wrong is many times greater. So it is safer to opt for a centralized crypto exchange.
How do you store Ethereum Classic (ETC)?
Ethereum Classic runs on the original Ethereum blockchain, which means that the ETC tokens are ERC-20 tokens. You can store these tokens in almost any wallet, because most tokens use the ERC-20 protocol. You can easily and quickly store your tokens in the hot wallet of your crypto exchange. However, this is not always the best and safest choice. It is much more sensible to store your ETC tokens in a cold wallet, also called a hardware wallet .
A hardware wallet is a USB stick where you can store crypto coins. Because you can disconnect a hardware wallet from the internet, it is much more secure than a hot wallet . When the wallet is not connected to a device, no internet connection is possible with the wallet. This makes it impossible for hackers to gain access to the hardware wallet. Of course you should then keep the hardware wallet at home. When you lose this, you also lose all tokens and coins that you have stored on it.
Is it smart to invest in ETC?
Of course you would like to know whether it is wise to invest in ETC. Unfortunately we cannot answer that. And we are not alone in that. It is important that you base your choice mainly on your own research, and not on what others say. But how do you do that research?
You can use a fundamental analysis . With such an analysis you look for all kinds of information about the blockchain and crypto currency. For example, you look at who is on the team of the project, how the project works and who the competitors are. Based on this research, you can then determine whether it is wise to buy ETC at the moment. You obviously want to buy ETC when the token is undervalued (meaning it’s too cheap for what it could/should be worth).
It is also possible to carry out a technical analysis , in which you go deeper into the figures of the project. For example, consider the price. By recognizing certain patterns from the past in the present, you can make an expectation on what the price is likely to do. You also know whether it is smart to invest in ETC at that time.
What are the benefits of Ethereum Classic?
Ethereum Classic has all the benefits of a blockchain, but it offers a few that are specific to its technology. These benefits include the following:
- Immutability . All transactions, once written and stored in the blockchain, cannot be changed, deleted or changed. It is this principle that has forced the split between ETC and ETH. This not only maintains a high level of decentralization, but also ensures greater security and code integrity.
- Decentralized . Ethereum Classic is proof-of-work based, meaning no middleman or central authority is needed. Transactions can take place without them and smart contracts are self-executing.
- Fast and Affordable Transactions . With an automated verification process that requires no third-party intervention, your transactions are processed and verified in no time. This is not the only advantage, because it also makes your transactions very economical.
- High reliability . The Ethereum Classic blockchain has been processing a wide variety of applications, smart contracts and transactions for five years without any third-party interference, downtime, fraud and censorship. This is a testament to its reliability.
- Programmable . The main advantage of the Ethereum Classic blockchain is that it is programmable, allowing developers to write decentralized applications or dApps and create smart contracts. These applications may include financial services, games, smart contracts, etc.
Can Ethereum Classic be used anonymously?
The anonymity that characterizes cryptocurrencies is exaggerated. This is because, although the decentralized blockchain does not contain any personal data, if you use Ethereum Classic or any other cryptocurrency, you will have to go through trading and exchange platforms that will ask you to provide personal information.
Some of the most trusted crypto exchanges have to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations and therefore have no choice but to collect personal data. The stricter regulations surrounding cryptocurrencies have also reduced the possibility of anonymity.
You would maintain a certain amount of anonymity if you only used the blockchain. But even then, there’s a digital footprint and meta-information that anyone with enough effort can lead to you. So, if you’re looking for absolute anonymity with ETC, unfortunately it doesn’t exist. Maybe there are a few crypto exchanges that allow you to buy and sell digital currencies anonymously, but they are quite risky and sometimes they are just scammers.
Ethereum Classic (ETC) Price
How safe is Ethereum Classic?
Ethereum Classic is without a doubt completely safe. Every transaction on the Ethereum Classic blockchain is made extremely secure by encryption techniques. Due to the structure of the Ethereum Classic blockchain, it has a large number of nodes to verify transactions at a rapid pace. The majority of cyber attacks on Ethereum Classic usually target poorly programmed dApps or smart contracts rather than the blockchain. The ETC network will not have the updated security of ETH 2.0, which is expected to be rolled out soon on the Ethereum blockchain, which will notably move to a proof-of-stake consensus mechanism.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com