The Ethereum Classic (ETC) cryptocurrency platform is open-source, decentralized, and blockchain-based. In 2016, Ethereum Classic was formed after The DAO, a smart contract on the Ethereum blockchain was hacked. A majority of users chose to reverse the hack and return the stolen funds by splitting the original blockchain in two.
The uses of Ethereum Classic
- Ethereum Classic is the primary currency used on the Ethereum network to pay for decentralized computations.
- On the Ethereum Blockchain, ETC is used for executing transactions and smart contracts. These actions are known as gas, and the fees associated with them are known as GAS costs.
The goals of Ethereum Classic
Since the split, several modifications and additions have been made to the Ethereum Classic project.
- Using smart contracts, the project develops a global payment network that does not require centralized control.
- Cryptocurrencies such as Ethereum Classic aspire to be a digital store of value, which means they can be saved and exchanged while maintaining their value.
Cryptocurrencies’ digital store of value includes their purchasing power, which can be quickly converted to cash or used to purchase other assets.
How does Ethereum Classic work?
Ethereum Classic, like Ethereum, is a blockchain-based platform on which developers can deploy decentralized applications through smart contracts. Also like Ethereum, the network uses Proof of Work as a consensus mechanism where miners must compete to solve complicated mathematical puzzles to produce the next block on the chain. Of course, being a blockchain has its problems, the network can only process around 15 transactions per second, while Proof-of-Stake (Pos) networks are times more efficient. This has challenged the scalability of the network.
This a criticism that has become increasingly relevant as Ethereum moves towards PoS with Beacon Chain in comparison. Upgrades are decided by the Ethereum Classic Improvement Proposal (ECIP) process, in which authors, developers, editors, and implementors all take part.
Ethereum Classic’s compatibility with EVM (Ethereum Virtual Machine) allows it to benefit from Ethereum upgrades. In light of its philosophy of slow, careful innovation, this is helpful. The network is therefore unable to respond quickly to trends, which is why it chooses to maintain a PoW consensus structure even though this might keep investors and developers safer.
Difference Between Ethereum and Ethereum Classic
ETC is a speculative digital asset traded by investors. Currently, ETC has 116.3 million coins in circulation with a market capitalization of $3.9 billion. ETC is trading at $33.61 per coin.
Ethereum With a market capitalization of $304.9 billion and over 115.6 million coins in circulation, the Ethereum token, ETH, is the more legitimate and traded of the two. Ethereum coins trade for over $2,600 each.