What is the Ethereum Classic (ETC) and how does it work?
Ethereum Classic is an open-source, blockchain-based distributed cryptocurrency that makes use of smart contracts. Following a hack in 2016, the Ethereum community divided on whether or not to pay the network’s affected users. The original blockchain was split in two, with Ethereum Classic surviving as the “immutable” original chain and Ethereum continuing as a hard fork under Vitalik Buterin’s direction. Are you curious about Ethereum Classic (ETC), but don’t know where to start? Not to worry. This book is intended to educate you on everything you need to know about the project and prepare you to dive into the most user-friendly trading experience on the market.
What is Ethereum Classic (ETC)?
Vitalik Buterin and his colleagues created Ethereum Classic as software to allow developers to create new cryptocurrency tokens and decentralized apps (dApps) that would run on the new Ethereum blockchain network. Ethereum Classic hosts dApps and transacts value using smart contracts contained within a distributed ledger while also providing a blockchain network with decentralized governance.
However, because to arguments regarding immutability between the mining community and the developers, the Ethereum network witnessed a hard split in June 2016. Ethereum Classic is actively maintained by an active group of miners that have chosen a distinct technical roadmap for the chain’s development. Since its beginning, Ethereum Classic has refused to fork and has resisted developer tweaks.
How does Ethereum Classic (ETC) work?
To validate transactions, Ethereum Classic, like Bitcoin, employs a Proof of Work (PoW) consensus process. Miners, who use their time and computer capacity to process transactions and generate blocks, are in charge of network security. It is critical that transactions occur in the order that they are made when using the network. Miners accomplish this by solving computationally challenging puzzles in order to generate blocks, which help to protect the network from malicious actors.
Who Are The Founders of Ethereum Classic?
The Ethereum Foundation, a Swiss non-profit formed by Vitalik Buterin and the core Ethereum team, first published the Ethereum Classic mainnet via Frontier on July 30, 2015. The major goal of the team was to realise the concept of putting executable smart contracts on the blockchain.
In June 2016, the DAO, a popular dApp, was compromised, and $50 million was taken from users. The attacker took use of a flaw in the programming that allowed them to withdraw more DAO tokens beyond the user’s first payment, draining more than a third of the DAO’s core capital. This generated a heated debate about how developers should respond and if the chain should fork.
On July 15, 2016, a short-notice on-chain vote was held for the DAO hard fork proposal. 5.5% of the total supply of 82,054,716 ETH voted. The DAO Fork received 3,964,516 ETH (87%) in support, with 1/4 of that coming from a single address, while 577,88 ETH (13%) were opposed. There was some criticism of the hurriedly organized referendum, but the Ethereum network formally forked from Ethereum Classic as of Block Number 1,920,000.
What Makes Ethereum Classic (ETC) Unique?
Ethereum Classic is one of the most historically popular hard forks of any blockchain, and it continues to be popular today. Because they share the same underlying code, Ethereum Classic has many of the same features as Ethereum. Ethereum Classic differs from Ethereum in that it chooses to be immutable and provides a permanent Proof of Work system for users to participate in.
What Gives Ethereum Classic (ETC) Value?
The Ethereum Classic coin is responsible for the upkeep and operation of the ETC network. Users gain value by engaging in a variety of activities on the Ethereum Classic network. Users that have ETC can use smart contracts, conduct network transactions, communicate with dApps, and vote in governance elections.
How Is Ethereum Classic (ETC) Secured?
Proof of Work (PoW) is the consensus technique used by Ethereum Classic. To safeguard the network, ETC will never employ another consensus process. Ethereum Classic miners protect the network by solving computationally tough challenges in order to generate and verify transaction blocks.
As long as every miner or node on the network agrees on the order in which the blocks are generated (aka consensus), the state of all information on the blockchain is recorded and the network moves on to the next block. By requiring hostile actors to control a big section of the network (51% or more), this consensus process avoids attacks.
How To Use Ethereum Classic (ETC)
Though ETC functions similarly to Ethereum, users who want to run a node or transact on the Ethereum Classic network will currently require the Ethereum Classic software. ETC is primarily used to transfer wealth on Ethereum Classic’s L1 network. Ethereum Classic is also appealing because of its ability to run smart contracts using its native Ethereum Classic (ETC) currency. It can also be used as a speculative investment instrument and as a form of payment.
How To Choose an Ethereum Classic (ETC) Wallet
The type of Ethereum Classic (ETC) wallet you select will most likely be determined by what you intend to use it for and how much money you need to keep. Hardware wallets, also known as cold wallets, are the most secure solution, as they allow for offline storage and backup. Both the Ledger and Trezor hardware wallets provide ETC storage solutions. Hardware wallets, on the other hand, have a higher learning curve and are more expensive. As a result, for more experienced users, they may be better suited to storing bigger amounts of ETC.
Software wallets are another option that is both free and simple to use. They might be custodial or non-custodial and can be downloaded as a smartphone or desktop app. The service provider manages and backs up your private keys when you use custodial wallets. Non-custodial wallets hold private keys on your device using security components. While they are more handy, they are less secure than hardware wallets and may be better suited to lesser amounts of Ethereum Classic (ETC) or more inexperienced users.
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