Born in hard times Ethereum Classic (ETC) should have been the undisputed king of altcoins had it not split in 2016 after the infamous DAO hack that shook the blockchain industry to the core. New investors making an investment decision are often confused when comparing Ethereum and Ethereum Classic. Although the symbols look similar, there are many differences between the two blockchains. Today I will try to clear the air and explain everything you need to know about Ethereum Classic (ETC coin). Let’s dive in –
What is Ethereum Classic?
Ethereum Classic (ETC) is a decentralized blockchain-based platform designed for smart contracts. It is the oldest and the original version of the Ethereum (ETH) blockchain. The applications running on the platform are immutable and free from censorship, manipulation, downtime and third-party interference. In short, there is no possibility of governance.
History of Ethereum Classic:
Ethereum Classic is the original version the Ethereum blockchain. It emerged after the hard fork that took place in 2016 post the DAO hack. A consensus has been established within the Ethereum community to make the hack obsolete by hard forking (explained in Cryptocurrency terminology) the complete Ethereum network. The move sounded logical at first, but a large part of the group didn’t agree with the proposal as it blew up the reason for creating a decentralized system.
The debate split the Ethereum community into two groups, one favoring the hard fork while the other supported the code by following the principles of decentralization, hence naming the original chain Ethereum Classic.
The DAO Hack:
DAO stands for Decentralized Autonomous Organization, which was launched on the Ethereum blockchain in 2016. It was one of the famous projects of the time, designed to function as a venture capital fund. The DAO was very successful in rearing 150 million dollars Value of Ether (ETH) in just 3 weeks following its crowdfunding efforts involving 11,000 investors.
Everything went upside down when one day the project was hacked and the hacker dumped an estimated amount 70 million dollars Value of ether from total funded amount. The hack stole almost 14% of the total Ethereum supply in circulation. It was more of a survivability threat to Ethereum. The only way to recover the funds and make the hack obsolete was to hard fork Ethereum.
Hard fork was completed and Ethereum was back on track, but the part of the group that supported the original principles of Code stayed and continued the original blockchain and called it Ethereum Classic.
Ethereum Classic follows the “Code is Law” principle
Code is law:
In the blockchain, code is law means that every transaction or process that is completed on the network is final and immutable. In simpler terms, once the process is completed, nobody has the right to change the outcome of the process after its completion, which also indicates that nobody can change the execution code. What is done is final.
For example, today’s banking system displays your account balance and daily transactions. However, these transactions or your bank statement can be manipulated by the bank. Of course, there are laws that prevent such acts, but the possibility is always there.
If you say code is law, there is absolutely no way of changing it. You and I have no right to change or alter the outcome of said transaction. What is done is final. This is what decentralization stands for, not an ownership model.
What is Ethereum ETC coin?
ETC is the native currency of the Ethereum Classic blockchain. It is used to secure the network and help create smart contracts on the Ethereum Classic network. At the time of writing, ETC ranks 25th in market cap.
The total supply of ETC is capped at 210 million
Ethereum Classic vs Ethereum
| comparison type | Ethereum Classic (ETC) | Ethereum (ETH) |
|---|---|---|
| principle | Code is law | consensus rules |
| total supply | 210 million | Unlimited |
| TPS | 4 | 15 |
| protocol | POW | Change to the POS |
| Security | Middle | High |
| popularity | Low | Very high |
Advantages of Ethereum Classic:
Zero Manipulation:
Ethereum Classic follows Code is Law and has the zero immutability rule. Therefore, do not expect any impairment or change in the outcome of any transaction conducted on the platform. The same applies to the creation of smart contracts.
Intelligent contract creation:
Ethereum Classic supports smart contracts. In fact, it is the first smart contract-based blockchain solution. Since the source code is similar to Ethereum. A developer can create a smart contract in a similar way as they can do on the Ethereum network.
store of value:
ETC coins or Ethereum Classic’s native token can be a store of value. If the blockchain can compete with the upcoming projects, accompanied by the rising adoption rate. The result will be an increase in the price value of the ETC token.
The move from ETH to POS can be good news for ETC. Mining can be shifted from ETH to ETC
Ethereum Classic Cons:
loss of trust:
The DAO hack highlighted the vulnerability of the Ethereum network. This event caused investors to lose confidence in the Ethereum Classic blockchain even after the hard fork. Furthermore, there is no major update to Ethereum Classic that could convince investors to return to the network.
proof of work:
Ethereum Classic sticks to the POW protocol, which has been criticized by environmentalists, while popular blockchains like it Cardano (ADA), Polka Dot (POINT), Solana (SUN) have integrated the new Proof of Stake (POS) consensus mechanism, which is fast and energy efficient.
Low PR activity:
Tell me when was the last time you heard any Ethereum Classic news? Perhaps most readers and investors hear a lot about the Ethereum 2.0 update, but hardly anyone talks about Ethereum Classic. A marketing and PR (public relations) team is part of the core of any project that needs investors or customers to support and run its business. Unfortunately, Classic is missing in this area.
Rise of tech-savvy competitors:
After the hard fork, Ethereum Classic had the first mover advantage to revolutionize the way people look at blockchain technology. However, it missed the opportunity and the baton was passed to the emerging blockchains like Solana, Polkadot, etc.
Ethereum Classic price:
Ethereum Classic Price Prediction:
Ethereum Classic catches the Ethereum surge and has its share of success in the recent bull run. It has reached an all-time high of $175 followed by an all-time low of $32 in the recent market crash. It is clearly a highly volatile cryptocurrency.
Although the project fundamentals are clear, competitive advantages are lacking. In addition, the emergence of new blockchains poses a serious threat to their existence. Let’s not forget how Ethereum is upgrading to ETH2.0 and catching up with the competition. Something missing in Ethereum Classic.
Summarizing my thoughts in one sentence, I am neutral to negative on the growth potential of the price level of Ethereum Classic if projects such as Solana (SUN) And Cardano (ADA) take all the limelight. It will be a miracle when luck strikes $1000 in the next bull run, but a bear market has the potential to wipe out the project entirely, and you can see it rolling down into the single digits $10.
How to buy Ethereum Classic?
Ethereum Classic (ETC) can be bought, sold or held on all leading cryptocurrency exchanges such as Binance and Coinbase. Just register your account and start trading ETC coins. Remember to check out Binance’s native token Binance coin.
Indian users can use WazirX Cryptocurrency exchange to buy Ethereum Classic or any other cryptocurrency on the platform. Just create an account and verify your KYC. Once approved, you can load INR and buy the cryptocurrency of your choice. Check out my review of Wazirx WRX Coina native token of the exchange with great potential.
Is it worth investing in Ethereum Classic (ETC)?
Ethereum Classic has what no other blockchain has in common, namely being immutable and censorship-free. Although these features are not enough to sail the boat when you have new blockchains with better offerings and features.
It’s going to be a tough race to win the Classic. Its closest competitor, Ethereum, is already leading with the ETH 2.0 upgrade, while Classic is still awaiting the big upgrade. 5 years ago time was on the side of Ethereum Classic but now the tablets have turned. The blockchain industry is entering a consolidation phase and I doubt Ethereum Classic can pull it off.
However, I would rather choose Ethereum ETH via Ethereum Classic ETC. This is my take on the Classic version. What about you?
That concludes my review of the Ethereum Classic ETC coin. I hope you enjoyed reading it. In the next post I will check Ripple XRP cryptocurrency, Uniswap exchange And Brave Browser BAT coin. If you like the post, please share it and let your friends know. Remember to subscribe to mine Youtube channel for more informative content published each week.
DISCLAIMER:
Cryptocurrency is a very volatile market. All information shared in the post is for knowledge purposes only. In no case is it financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after thorough research.
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Paras is a blockchain writer and video artist at Katoch Tubes. In his spare time, he loves to watch space exploration documentaries and Hollywood movies.
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