What Is Ethereum Classic – a Quick Overview of the Network and Cryptocurrency
In the inspiring crypto space, while Ethereum token is thriving, its offshoot Ethereum Classic is not lagging behind. ETC is the original ETH platform’s hard fork, released in 2016. It is a decentralized digital currency and has analogous technical characteristics as its predecessor. Both tokens are highly volatile. Yet, these altcoins have been a preferred choice for lots of financiers and crypto traders.
Let’s explore the Ethereum Classic’s specifications, look for reasons why it keeps on expanding its digital horizons, in what terms it is similar or different from ETH, and what makes it so prosperous.
What Do I Need to Know about Ethereum Classic?
Classic Ethereum has long been the globe’s most prevalent decentralized and blockchain-grounded platform, which allows its holders to create DApps – decentralized applications maintained by smart contracts. ETCfeatures scripting functionality.
- The token supports an adapted Nakamoto consensus form via state-centered transitions completed on an open EVM. Its network comprises miners, companies, and developers.
- Like the pioneer BTC, no one manages or possesses ETC. It remains an open-source venture put together by individuals worldwide. Classic Ether’s best feature is flexibility – the network lets you generate novel applications.
Ethereum Classic History
The self-directed investment project DAO was created following Etherium’s success. It maintained a fully decentralized managing model. After this project collapsed due to hacker activity, the ETH Foundation was split. Some of its members chose to return the stolen assets to the owners by rolling back the code, and others decided to preserve the main notion of a non-interference policy. These events led to the formation of a new venture – ETC.
A week following the release of the official webpage, ETC was registered by the Poloniex exchange, thus becoming officially recognized as a new crypto asset on the market.
Here are some facts about the token:
- In 2014, Ethereum founders including Vitalik Buterin started their work on a next-generation digital ledger that in prospect would implement an extensive, smart contract network.
- Initially planned in 2013 by Buterin, the platform rapidly gained approval among the developers immediately after its launch on 30 July 2015.
- In 2016, ETC mainline created an innovative network that adheres to novel consensus guidelines. Classic Ether adhered to the previous network regulations with the original perception of ETH. Now, the token preserves the reputation of a reliable crypto asset and does not depend on any corporations.
Where to Store ETC
To store Ether Classic, you can use the same methods as for other cryptocurrencies, namely: crypto-exchanges, wallets in the form of desktop / mobile applications, online wallets, hardware and paper wallets.
Most of the popular multicurrency wallet apps support ETC like Guarda, Trust Wallet, Exodus. When it comes to online wallets, the choice is not so great. Until recently, it was possible to use the official Ethereum wallet MyEtherWallet, but now it has ceased to support work with ETC. Fortunately, there is also this Ethereum Classic mono wallet, which is as easy to use as possible. By the way, you can use it to create a paper wallet ETC.
Hardware wallets like Ledger and Trezor are the safest. They are suitable for long-term storage of large amounts, but less convenient than the above.
ETC: Technical Features
As an Ethereum-based hard fork, and derivative, ETC shares the same features as the original platform. It mainly relies on so-called smart contracts, which transfer digital money from one party to another by design after the set transaction requirements are fulfilled.
The platform generates new blocks with the consensus algorithm named PoW. Miners get remuneration for their labor. To begin any transaction, the platform user has to pay a gas fee.
Attacks on ETC
A surprising fact about Classic Ethereum is that in 2019, it was a victim several times – it survived 51% of hacker attacks. This kind of invasion indicates controlling over half of the scheme and allows invaders to spend coins twice.
A group of foundations succeeded in doubling spending on ETC by virtually 500,000 USD. In summer 2020, an identical attack took place three times and the originators ultimately shifted away from the previous form. The platform started adding the security solution Mess as a protection scheme in October 2020.
Key Goals of ETC
Although two related coins both contain Ethereum in their names, the tokens are unalike.
If ETH focuses on improving its network to serve its emergent users, ETC intends to provide an unlimited means to manage crypto assets and facilitate the funds’ transfer process via smart contracts – just as in the initial growth stages of Ether. Contrary to the forerunner, the ETC aims to keep the system unchanged.
Monetary Policy of ETC
Back in 2017, the overall ETC supply was capped by the renovation of hard-fork Gotham – with the indicator 210,700,000 ETC. This became a reason for the addition of a BTC-like deflationary PoW emission schedule accepted in ECIP 1017. Recognized as 5M20, it diminishes the block return for every group of 5,000,000 blocks by twenty percent. Explore the details below.
| 5M20 Era | Block | Total Era Emission (ETC) | Block Reward (ETC) | Date | |||||
| Era 1 | 120 | 25,000,000 | 5 | 15–07 | |||||
| E 2 | 5,000,00120 | 20,000,000 | 4 | 17–12 | |||||
| E 3 | 10,000,00120 | 16,000,000 | 3.2 | 20–03 | |||||
| E 4 | 15,000,00120 | 12,800,000 | 2.56 | 22–04 | |||||
| E 5 | 20,000,00120 | 10,240,000 | 2.048 | 24–05 |
ETC Projects
The ETC developers team is carrying out works to improve venture security. The token also instigated the update called Thanos last year. It intended to regulate the hashing algorithm as of the earlier Ethash version to a new one – Etchash.
Back in spring 2020, the venture teamed up with Chainlink to add into ETC decentralized oracles. This enables the network to access records on the global level.
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