Ethereum Classic is one of the two crypto assets created after a hard fork of the Ethereum network in 2016. Prior to the fork, there was strong disagreement within the Ethereum community on how to respond to the infamous DAO hack, in which a hacker exploited a vulnerability in the DAO’s smart contract system, resulting in ETH worth more than $50 million becomes inaccessible.
Part of the Ethereum community advocated a hard fork, effectively reversing the damage done by the DAO hacker and erasing it from the history of the blockchain. This part of the Ethereum community backed the Ethereum chain as we know it today, with ETH as its native capital.
The other part of the Ethereum community claimed that immutability is a crucial aspect of blockchains, even if it can sometimes lead to undesirable results. This camp opposed the idea of using a hard fork to fundamentally change the story of what happened on the Ethereum blockchain. This part of the Ethereum community backed the side of the hard fork now known as Ethereum Classic with ETC as the native asset. The aftermath of the DAO hack is still present on the Ethereum Classic blockchain.
Key features of Ethereum Classic:
- The name Ethereum Classic was used in 2016 after the Ethereum community split into two opposing camps
- Maintains the continuity of the Ethereum blockchain
- Uses Proof-of-Work to secure the ledger of transactions and there are currently no plans to move to Proof-of-Stake
- Unlike ETH, the total supply of ETC is capped
What is Ethereum Classic and how does it work?
Ethereum Classic is basically a decentralized, blockchain-based platform that runs smart contracts. As a smart contract platform, it hosts and supports decentralized applications (DApps) applicable in various scenarios, solving various problems inside and outside the crypto space. It also has a native currency traded with the ticker symbol ETC.
To understand how Ethereum Classic works, you need to be familiar with smart contracts. Put simply, smart contracts are self-executing computer programs stored on a blockchain that run according to predetermined conditions. They do not require the involvement of third parties and cannot be manipulated.
Ethereum Classic allows blockchain developers to build and deploy decentralized applications (DApps) on it. Of course, the DApps are embedded in smart contracts that run based on predetermined conditions and are immune to third-party interference. This allows users to exchange money, property, and other valuable items without intermediaries.
As a blockchain network, Ethereum Classic relies on a proof-of-work consensus mechanism. This means that users around the world are providing computing power to validate transactions and ensure the security of the network. In return, miners receive ETC, the valuable native currency of the network. Users can transact with ETC, use it for all types of transactions and also exchange it for other digital assets and fiat currencies.
Ethereum Classic (ETC) price history
It is well known that cryptocurrencies are volatile. This implies that their prices fluctuate from time to time. ETC is no exception to this rule and it is important to understand how the price of Ethereum Classic has performed historically.
ETC is a relatively popular digital coin. It has been on the market since 2016 and is available on multiple cryptocurrency exchanges and platforms including the top exchanges. Despite its close ties to ETH, the price of ETC doesn’t necessarily have a large correlation with the price of ETH. Rather, general crypto market conditions and specific events within the Ethereum Classic ecosystem affect the price.
To keep this section easy to understand, we will highlight key milestones in ETC price history since trading began on official exchanges:
- ETC was launched at the end of June 2016 and on July 24, 2016 the price was $0.752354
- The ETC price hit an all-time low of $0.615038 on July 25, 2016
- ETC/USDT first touched $1 in July 2016
- In May 2017, the ETC coin price reached the $10 mark for the first time
- Ethereum Classic crypto price hit $50 for the first time in April 2021
- The ETC value reached the $100 mark for the first time in May 2021
- ETC reached its all-time high (ATH) of $176.16 on May 6, 2021
As ETC’s price fluctuates from time to time, so does its market capitalization. You can view a detailed ETC price chart and Ethereum Classic price today on CoinCodex.
Ethereum Classic (ETC) offering.
The maximum ETC supply is set at 210,700,000 coins. New ETC coins come into circulation through Ethereum Classic Mining. It is important to note that although Ethereum (ETH) will move to Proof-of-Stake, the Ethereum Classic (ETC) project is committed to Proof-of-Work.
The circulating supply of Ethereum Classic is gradually increasing as new coins are released to reward miners. However, this will no longer be the case after all available ETC have been mined.
The classic Ethereum supply was severely limited by the Gotham hard fork upgrade on December 11, 2017. The move added a Bitcoin-inspired deflationary issuance schedule to the coin’s offering. This deflationary schedule, also known as 5M20, decreases the block reward by 20% every 5,000,000 blocks. This aspect of the ETC tokenomics should bring the long-term sustainability of the coin to a high level.
The main milestones of Ethereum Classic
Since it emerged from the original project, the cryptocurrency Ethereum Classic has undergone important developments. A lot has happened in terms of upgrades, technical changes and monetary policy.
Here is a summary of the main milestones and events related to the Ethereum Classic project:
- July 20, 2016 – The DAO “bailout” results in a new Ethereum forked chain, with many predicting that the original unforked chain will disappear within hours. Market participants rename and brand the original non-fork chain and Ethereum Classic was born
- July 23, 2016 – Poloniex lists ETC as a tradable digital coin and many other cryptocurrency exchanges follow suit
- March 1, 2017 – Ethereum Classic reaches consensus to cap maximum ETC supply to 210,700,000 and adopts Bitcoin-inspired issuance plan to control inflation
- May 29, 2018 – ETC successfully disables the difficulty bomb that was supposed to force the Ethereum to PoS transition. This signaled Ethereum Classic’s long-term commitment to PoW.
- June 1, 2018 – Ethereum Classic Labs opens an office space in San Francisco with a mandate to provide funding and industrial connections
- January 8, 2019 – First 51% attack occurs and ETC begins tightening surveillance
- November 28, 2020 – ETC implements the Thanos upgrade and adapts the mining algorithm from ETHash to ETCHash
- July 23, 2021 – ETC Core developers implement ETH Berlin Protocol upgrade to maintain operational parity with sister chain
- April 11, 2022 – The Ethereum Classic DAO is formed to oversee the development of the network through an open-source development fund
Ethereum Classic vs. Ethereum
While Ethereum Classic (ETC) is undoubtedly the original blockchain, Ethereum (ETH) is considered the most legitimate. The original founders and a majority of network participants voted and proceeded to create the hard fork, and Ethereum (ETH)’s many successes justify this move. The 51% attacks that have affected the Ethereum Classic crypto in the past have also contributed to ETC’s second-tier status.
Over the years, ETH has grown to become the largest smart contract platform while ETC has struggled to keep up. Nonetheless, the ETC crypto could still have value as a speculative digital asset and could gain utility if a larger number of projects decide to build on the Ethereum Classic platform.
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