They believed that, despite the hack, blockchains are not meant to be tampered with. In their minds, Ethereum Classic is considered the real Ethereum or even the father of what we now call Ethereum. More on this coming up! Now that we know what Ethereum Classic is and how it was created, we should look into its technicalities.
So, how does ETC work? Ethereum Classic is a decentralised and open-source computing platform. This means that anyone can join the network, with nodes being spread across the globe. Both Ethereum and Ethereum Classic allow developers to use the open-source code to create smart contacts, tokens, and dApps. For Ethereum Classic supporters, though, Code is Law. This means that all transactions are final and immutable. In a way, Ethereum Classic has become like the Ark of the original Ethereum network.
Ethers are mined. Ethereum Classic relies on a proof of work algorithm to create new coins and Ether is created as a reward for miners. Users can also pay gas fees with Ether to reduce spam and allocate resources. ETC coins are capped at million, which gives a level of scarcity to Ethereum Classic. In contrast, Ethereum is in the process of transitioning to a proof of stake consensus mechanism.
In a way, this kind of means Ethereum Classic has more similarities to Bitcoin than Ethereum. This is probably their biggest technical difference. To better understand Ethereum Classic, we have to clarify two main terms that are often used in the cryptocurrency sector:. Despite Ethereum growing substantially more than Ethereum Classic in regards to smart contracts and dApps, Ethereum Classic has its special space in the crypto universe.
Here we should explain that the DAO the Decentralised Autonomous Organisation was created as a smart contract on Ethereum and was meant to act as a venture capital fund. In other words, the DAO would allow people to share ideas and receive funding for their crypto projects. With this level of power they can manipulate transactions. Since then, ETC has primarily worked on enhancing security, particularly after further attacks on the network.
The future of Ethereum Classic is uncertain like most other cryptocurrencies. However, there is a key thing to look out for: upgrades. Not so much on bringing any crazy new features. This can be viewed in different ways - you could see this as much better for the long run of Ethereum Classic as it will be more stable and secure, which could be reflected in a slow price increase.
However, short-term traders may prefer big feature releases which could add an element of price volatility and short-term gains. Ethereum and Ethereum Classic are very similar in terms of basic functionalities. Users can create smart contracts and dApps, as well as tokens for their projects. Ethereum is often considered the king of smart contracts. To provide an example, Ethereum facilitated the creation of leading coins like Binance Coin and crypto games like CryptoKitties and is now the leading DeFi platform.
The Ethereum team also continuously upgrades Ethereum to improve scalability and user experience. And being the second-largest cryptocurrency and largest dApp and smart contract platform, they have no shortage of developers willing to work with them. This also means they can implement changes much faster than Ethereum Classic.
As such, according to experts, one of the main purposes of Ethereum Classic remains mainly in preserving the original Ethereum code and historical record. Another difference is that Ethereum Classic is still mined, while Ethereum 2. Curiously enough, because Ethereum Classic is mined, the network is in a way similar to Bitcoin; its monetary policy relies on being capped and algorithmic.
But generally speaking, Ethereum is winning the popularity contest. There is a vast divide in the price between Ethereum and Ethereum Classic. Historically speaking, the two were much closer when ETC was first introduced in And as time went by, that divide only grew wider. The two also seem to be affected by the same economic factors as well. Both shot up in the bull run, fell in and rose again in early However, as Ethereum Classic is a lot cheaper, it means it is a lot easier to buy into.
This could mean that you could buy up a much larger amount of Ethereum Classic if you have the funds to do it. Of course, though, for this to be worth it, you really have to believe that Ethereum Classic can reach the same levels Ethereum has reached.
Meanwhile, Ethereum transaction fees can be volatile and at times very expensive. Looking at data from YCharts , the average Ethereum transaction fees were very high in May. So, why Ethereum is at the top of its game, there are several ways in which ETC could undercut them.
Would you consider investing in Ethereum Classic? ETC, called ether, is the native cryptocurrency of Ethereum Classic. The difference is in the ticker symbol. For a start, they can be used to pay gas fees fees to compensate the computational energy for processing and validating transactions. That said, there are some significant differences, too. ETC coins are mined and there is a limited supply of ,,, with ,, On some platforms, you may also see ETC being traded against other fiat currencies and even cryptocurrencies.
Here we should mention that the Ethereum Classic team has participated actively in the crypto sector during the ongoing coronavirus pandemic. Ethereum Classic Labs supports the OriginalMy project that aims to facilitate the process of collecting digital signatures and tackling fraud beyond borders, which can improve local and international processes during the pandemic.
Moreover, as mentioned above, Ethereum Classic is capped. This can increase scarcity and demand and push prices up. As developers put it:. Its monetization makes everything tick and helps to bootstrap the ecosystem. Ethereum Classic has also worked towards creating closer ties to Ethereum with the Agharta and Phoenix forks.
These forks have made Ethereum Classic more interoperable with Ethereum. At the same time, investing in Ethereum Classic remains fairly risky in terms of security. Then came the dreaded In , like much of the crypto market, Ethereum Classic saw a huge spike in price. Its first major movement upwards since Based on this information, we can say that Ethereum Classic follows market trends. Specifically, if Bitcoin and altcoins are up, ETC will likely follow.
Like most altcoins, Ethereum Classic is very susceptible to news related to Bitcoin. In the last few price jumps and crashes, this is exactly what happened. One of the primary things they have aimed to do to tackle this is security, and you can see they are still actively working on this in their April development update.
If you are considering buying Ethereum Classic ETC , then you might want to know how much it could be worth. Prices may increase further, as ETC is trying to improve its interoperability with other blockchains and security. ETC could enter the top 10 cryptos list in the next five years and start competing with leading altcoins like Cardano , NEO , and even Ethereum.
Always do your research and collect accurate data before you start trading any digital asset. Many experts believe that ETC will increase in value in the long-term as the team has chosen blockchain immutability and transparency. A lot can change in the space of a decade. Other forecasters believe a lot more time is needed before this point. Elsewhere, Wallet Investor is the only other site wild enough to make big predictions on ETC, but they are much more relaxed.
Ethereum Classic is definitely worth considering in For those who believe in the Code is Law principle, Ethereum Classic is a great investment. Ethereum Classic is also trying to establish itself as a major player in the Decentralised Finance DeFi space, which is one of the faster-growing sectors today. Do not forget that cryptos can be also highly volatile and risky, so never invest more than you can afford to lose! The attacks took place in August The situation was very embarrassing for Ethereum Classic.
It showed that they had still not fixed the issue that caused Ethereum to split away four years before. A big turnoff for investors. However, with the upgrades that have been made since this time, there is a lot less to worry about. Not only do some see him as a controversial character, but some might also say that by working on both Cardano and Ethereum Classic, he has a conflict of interest.
Ethereum Classic may rise again in the coming months and years. Ethereum Classic is the original Ethereum blockchain, and what we now call Ethereum is technically the newer version. From this point, the community split into two factions with the majority moving to the new Ethereum and a minority choosing to stay with what would become Ethereum Classic. As a result, the platform split over ideological differences into Ethereum and Ethereum Classic.
As Blockchain Society explained when discussing Ethereum Classic:. All executions are final, all transactions are immutable. For everything else, there is a time-tested way to adjudicate legal disputes and carry out the administration of justice.
In return, though, Buterin wrote in Other crypto projects have also experienced similar problems and debates. Take Bitcoin and Bitcoin Cash in , for example! Well, one thing is for sure: despite its beliefs, Ethereum Classic lags behind Ethereum in terms of market cap and adoption.
Knowing the advantages of investing in ETC is a must in order to make an informed decision regarding your investments. Ethereum, just like other cryptocurrencies, is decentralised with nodes being spread across the globe. This means that payments and transactions are executed without having to rely on costly third parties or restrictive governments. Since Ethereum Classic is the unaltered version of the Ethereum blockchain, many call Ethereum Classic the original or real Ethereum.
This is appealing to those that believe that Ethereum has changed too much since its creation. Such strong beliefs about the immutability of the platform have led to the creation of a dedicated group of users and blockchain enthusiasts. To function, these smart contracts and dApps need to use ETC as fuel, creating demand for the coin.
Hence the more devs build on the network, the theoretically higher ETC will be valued. Particularly during the last crypto bull run transaction fees spiked multiple times, making Ethereum almost unusable for devs. This makes Ethereum Classic a much better alternative for technical users to build upon.
This will enable devs to collaborate between platforms and drive innovation, which will hopefully bring more users to Ethereum Classic. Since they started working on the project, they have introduced Mantis , a client natively written for Ethereum Classic. Its purpose is to mitigate attacks and improve security.
Despite a big loss of value after the bull run in May , ETC is still far higher than it was at the start of the year and most of its existence. While Ethereum Classic comes with some tempting advantages, there are also drawbacks one should consider before buying ETC.
Understanding the cons of ETC is crucial to help investors create an effective risk management strategy. As the two continue to develop in different directions, they will become increasingly different from each other. Thankfully, moves towards interoperability will make this less problematic, but it still means ETC is missing out on a lot of crucial upgrades. Ethereum Classic lacks high community interest and developer activity.
In comparison to Ethereum, Ethereum Classic has a tiny number of active wallets and minuscule growth. Ethereum and Ethereum Classic active wallets. Source: bitinfocharts. And the picture only gets bleaker when you compare the two for GitHub activity. Meanwhile, Ethereum made about You would think that Ethereum Classic would take action to prevent this from happening after all, it was how it was created. But embarrassingly so, it looks like not enough action was taken.
The first major attack took place in and led Coinbase to temporarily stop ETC transactions. However, if another attack happens at this point after all the security changes, it could very well be the end for ETC. Blogger David Seaman even said:. It will be exceedingly difficult for ETC to move past the image of being created from a hack unless it starts to offer much more than an alternative to Ethereum.
Adoption is especially important to prices. The more people use ETC, the more demand there will be for it and the price should therefore increase. As a side note, it will also make ETC more secure as more users mean it will be more difficult to hack. Ethereum Classic search interest, July to July Source: trends. The graph above highlights the issue. Is It A Good Investment? Now you know the pros and cons of investing in Ethereum Classic, you can decide for yourself if potential rewards outweigh risks.
So, should you invest in Ethereum Classic? Is ETC a profitable asset for your portfolio? ETC might be a risky investment - this much is true. While Ethereum has made a spectacular comeback so far, Ethereum Classic will always be seen as the less popular sibling of Ethereum. At the same time, Ethereum Classic has a strong community of supporters who believe in the immutable nature of the blockchain, insisting that Code is Law, which is the wonder of blockchain mechanics.
Besides, the current price of ETC is seen as a low barrier for crypto investors and traders , especially when compared to ETH. Just remember that if you decide to invest in ETC, you should always do your research and invest in an effective risk management strategy. Put simply, Ethereum Classic is a medium-risk investment with lots of potential rewards. The real investment question for Ethereum Classic is does it really work? Given its limited supply of ,, coins, ETC value may increase as crypto scarcity tends to promote growth.
But that all changed with the bull run. Some experts are positive and believe that ETC can explode again beyond its current price levels. Major Ethereum forks. Source: Capital.