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What Is Ethereum Classic?
Ethereum Classic has quite an interesting story behind its formation. It was formed as a result of the network formed in 2016. Ethereum, as widely known, is a famous blockchain protocol. According to the CoinMarketCap data, Ethereum is the second leading cryptocurrency in the world. The Ethereum blockchain was divided into two: the original came to be known as Ethereum Classic, while the newer blockchain was just called Ethereum Classic.
ETC works as an open-source, decentralized, blockchain-based distributed cryptocurrency that runs smart contracts.
Smart contacts are based on the principle of “Code is law ” and are self-executing autonomous digital applications that can run by themselves as programmed. Automatic Teller machines (ATM) and the Bitcoin System are examples of such applications.
Ethereum Classic helps in deploying smart contracts since it offers decentralized governance. It means that the contracts can be enforced without intermediaries, such as a lawyer.
History of Ethereum Classic
The Ethereum network, just like any other network, was a single network. The ETH or Ether facilitated the transaction in the Ethereum network. However, at the beginning of May 2016, the DAO was announced. The DAO, also known as Genesis DAO, was created as a smart contract on the Ethereum blockchain. The DAO name was given to it by the Ethereum community. Its creation period created history and managed to raise funds worth 12.7 million Ether in the biggest crowdfund ever. When the Ethereum price was at $20, the total worth of Ether from The DAO was more than $250 million.
Unfortunately, a hacker found a loophole in the coding of The DAO and stole the funds from it. Around 3.6 million ETH worth around $70 million at that time were stolen in the first few hours.
The hack resulted in the two versions of the Ethereum blockchain, as explained earlier. The earlier network uses ETC as its cryptocurrency, while the older one uses ETH as its cryptocurrency.
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Ethereum Classic vs. Ethereum — What’s The Difference?
Both Ethereum and Ethereum Classic offer the same functionalities, smart contracts, and, at the same time, target the same market. However, Ethereum is considered the more legitimate of the two networks and has gained popularity.
One major differentiating factor among the two networks is that the Ethereum Classic doesn’t require the updates on the ETH blockchain, while Ethereum requires the updates.
Many also argue, saying what is the requirement of ETC if it can’t be updated. It needs to be understood that the foundation of the Ethereum Classic is quite ideological. At the time, the network was going through a split, the community was against the move. This shows the Ethereum Classic community is quite passionate and is still loyal to the network. In short, the foundation of Ethereum is pretty ideological. It can be said that the unaltered historical record of Ethereum.
Now, the question arises, what happened to the coins? Anyone who had coins before the DAO attack now has coins in both the Ethereum chain and Ethereum Classic chain. The community of Ethereum is very much dedicated to the network. The network, as of now, follows the Proof of work and intends to stay the same as the community believes it is much more decentralized than other protocols. Ethereum classic is also quite profitable to mine.
Where Is Ethereum Classic Lacking?
One of the main limitations of Ethereum Classic could be its scalability. Usually, the network can handle around 15 transactions per second, which is relatively low compared to payment networks such as Visa, which handles more than one thousand transactions per second.
Even after going through so many software upgrades, scalability is still its biggest challenge moving forward.
Another issue with Ethereum Classic is security. In the past, the network has suffered quite a few attacks. First in January of 2019 and then in July & August 2020, however, to prevent this, the network has introduced the Thanos Upgrade, and since then, no attack like that has happened.
Its security issues will cause major financial and real estate transactions to use Smart contracts via Ethereum classic.
Future of Ethereum Classic
Taking into account the security concerns of the ETC, the future of the network doesn’t seem quite bright. In addition, Ethereum is considered more legitimate among the two networks.
Besides, the Ethereum Classic might also face more challenges in the future if the ETC did not alter its code and redevelop it and software in order to provide it security from hacks. Investors have already lost faith in it due to many attacks on the system.
Nonetheless, it remains the project that would be an emblem to look upon how the smart contracts will be built within the Ethereum Classic project and if they can be considered for a bigger and more extensive utility.
Goals of Ethereum Classic
The ETC Project has gone through many upgrades and improvements. However, the project’s aim remains the same, becoming a global network by utilizing smart contracts that can operate without any central authority.
Ethereum Classic will strive to be the digital store of value, which means that while retaining its value, it can also be saved and exchanged. Just like fiat currency, for crypto, the digital store of value will have its buying power which can be quickly turned into cash or used to purchase another asset.
Ethereum Classic Price Prediction
At the time of writing, the price of Ethereum Classic stands at $32.53, experiencing a dip of 0.07% in the last 24 hours.
Many are skeptical about the price of Ethereum, they are doubtful if the price of Ethereum can ever go up.
According to Long forecast, Ethereum classic will go downwards and touch $19 by the end of
the year, however in the short term, the price could reach around $25.
While Coin Price Forecast says ETC will surpass all the expectations and by 2025, in the next five years, the Ethereum Classic Price Prediction will touch the mark of $69.98, its highest price in the first half.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
