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About Ethereum Classic
Key Points
- Ethereum Classic (ETC) is the original Ethereum blockchain launched in July 2015.
- ETC is a smart contract network with a native token, ETC.
- ETC has a fixed monetary policy with a supply cap of 210,700,000.
- ETC uses a Proof-of-Work (PoW) consensus algorithm.
- ETC is fully replicated across all nodes, making it secure.
- ETC has a decentralized approach to governance.
Numbers and Figures
- 3.6 million
Ethereum Classic: A Beacon of Decentralization
Ethereum Classic (ETC): A Comprehensive Overview
Ethereum Classic (ETC) is the pioneering blockchain that originally launched as Ethereum (ETH) in July 2015. At its core, it operates as a smart contract network, boasting the capability to host and support a diverse array of decentralized applications (DApps), with ETC serving as its native token.
Since its inception, Ethereum Classic has endeavored to establish a distinct identity, with its technical trajectory increasingly diverging from that of Ethereum over time.
Ethereum Classic emerged as a beacon of integrity, steadfastly preserving the original Ethereum blockchain’s sanctity in the aftermath of a devastating hacking incident that resulted in the theft of 3.6 million ETH.
The Visionaries Behind Ethereum Classic: Unveiling the Founders
Ethereum Classic is, in essence, the original Ethereum blockchain, and its true architect is none other than the founder of Ethereum itself, Vitalik Buterin.
A pivotal and contentious hard fork transpired on the Ethereum network in July 2016, sparked by a deep-seated disagreement among participants regarding the reversal of the blockchain to nullify the consequences of a devastating hack. This event had a profound impact on The DAO, a decentralized autonomous organization (DAO) that had successfully raised approximately $150 million in a highly publicized initial coin offering (ICO) mere months prior.
Ethereum Classic emerged as the network that refused to revert the chain. According to developers, there is no single “official” team overseeing the project, and instead, its global development community operates as a permissionless “do-ocracy,” where anyone can contribute and participate freely.
The Unparalleled Characteristics of Ethereum Classic
Ethereum Classic boasts a distinctive profile, underscored by a synergy of the following features:
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Ethereum Classic (ETC) will persist as a proof-of-work blockchain, leveraging the most secure consensus mechanism known to date.
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As a digital gold, ETC’s value is underpinned by its proof-of-work consensus, where the cost of producing the currency is equivalent to the cost of producing blocks, and its fixed monetary policy is capped at 210,700,000.
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ETC’s programmability, facilitated by smart contracts, renders it significantly more versatile and useful than simpler cryptocurrency chains like Bitcoin or Litecoin.
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The unparalleled security of ETC stems from its full replication across all nodes of the network, unlike other smart contract blockchains that compromise security through “sharding,” “parachains,” or “sidechains.”
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ETC’s composability enables all applications facilitated by programmability to coexist within the same system, ensuring equal security and seamless interaction in complex transactions.
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The larger the blockchain, the more secure it becomes. As the largest smart contract blockchain with a proof-of-work consensus and fixed monetary policy, ETC’s size reinforces its robust security.
Ethereum Classic (ETC) will persist as a proof-of-work blockchain, leveraging the most secure consensus mechanism known to date, renowned for its unwavering reliability and unshakeable integrity.
Ethereum Classic (ETC) embodies the essence of sound money, akin to digital gold, owing to its proof-of-work blockchain infrastructure. The cost of producing this digital currency is directly tied to the cost of producing blocks, ensuring a symbiotic relationship between the two. Furthermore, ETC boasts a fixed monetary policy, capped at a total supply of 210,700,000, thereby maintaining a stable and predictable economic ecosystem.
Programmability: ETC’s inherent programmability, facilitated by smart contracts, renders it significantly more versatile and useful than its simpler cryptocurrency counterparts, such as Bitcoin or Litecoin.
Full replication: ETC boasts unparalleled security, as it is meticulously replicated across every node within the network. Unlike other smart contract blockchains, which compromise on security by adopting “sharding”, “parachains”, or “sidechains”, ETC remains steadfast in its commitment to full replication, ensuring unwavering security.
Composability: In ETC, composability signifies that all applications empowered by programmability coexist within a unified system, thereby ensuring equal security standards and facilitating seamless interactions between them in complex, multi-faceted transactions.
Size: The larger a blockchain is, the more secure the system becomes. As the largest smart contract blockchain that utilizes proof of work and boasts a fixed monetary policy, ETC’s substantial scale confers unparalleled security.
The synergistic combination of these distinctive features renders ETC dapps the most secure in the world.
Distinguishing Ethereum Classic from Ethereum: A Comparative Analysis
Ethereum Classic (ETC) and Ethereum (ETH) are two distinct blockchain networks that, although sharing a common ancestry, have since embarked on divergent paths, distinguished by disparate philosophical underpinnings and developmental trajectories.
Ethereum Classic, the pioneering iteration of Ethereum launched in 2015, is a decentralized, open-source blockchain platform that empowers developers to craft and deploy decentralized applications (dApps) and smart contracts with unparalleled flexibility. The integrity of its network is ensured by a robust Proof-of-Work (PoW) consensus algorithm.
Ethereum, on the other hand, is a fork of the original Ethereum blockchain, born in 2016 as a response to a devastating hack that resulted in the loss of millions of dollars’ worth of Ether. In a bold move, the Ethereum community implemented a hard fork to rectify the situation, reversing the hack and restoring the stolen funds to their rightful owners. This pivotal event gave rise to two distinct blockchains: Ethereum (ETH) and Ethereum Classic (ETC).
One of the primary distinctions between Ethereum Classic and Ethereum lies in their governance models. While Ethereum operates with a more centralized system, wherein a core development team dictates the platform’s future trajectory, Ethereum Classic adopts a more decentralized approach, where decisions are collectively made by the community through a consensus-driven process.
Another pivotal distinction between the two lies in their development roadmap. Notably, Ethereum has undergone a significant transformation, migrating from a Proof-of-Work (POW) consensus algorithm to a Proof-of-Stake (PoS) algorithm following The Merge in September 2022. In contrast, Ethereum Classic has remained committed to preserving its original PoW algorithm, steadfastly adhering to its decentralized ethos.
The Circulating Supply of Ethereum Classic (ETC) Coins: A Closer Look
ETC originated in a remarkably similar technical state to ETH, with the notable exception of how the DAO hack transactions were addressed.
Since its inception, however, a pivotal shift in tokenomics has occurred, with Ethereum Classic introducing a supply cap in December 2017. Consequently, the maximum supply is fixed at 210,700,000 ETC, approximately tenfold that of Bitcoin (BTC), whereas ETH has opted for an uncapped supply.
ETC employs a Proof of Work (PoW) mining algorithm, analogous to Bitcoin’s, where miners engage in a competitive validation process to secure the blockchain, earning newly minted coins as a reward. The ETC block reward undergoes a gradual reduction over time, decreasing by 20% every two years or 5 million blocks, with the next adjustment slated to occur at block 20,000,000, approximately in June 2024, when the reward will decrease from 2.56 ETC to 2.048 ETC per block.
The Security Mechanisms Underpinning Ethereum Classic (ETC)
The Proof-of-Work (PoW) consensus mechanism
During its tenure as a minority chain, ETC faced several malicious attacks. Notably, it was vulnerable to 51% attacks, which enabled perpetrators to seize control of the mining hashrate and orchestrate fraudulent transactions, including double-spending coins. The most recent incident of this nature occurred in August 2020.
Ethereum Classic employs the Proof-of-Work (PoW) consensus algorithm, wherein miners safeguard the network by resolving computationally intensive puzzles to create and validate blocks of transactions.
The ETC blockchain is fully replicated, rendering it redundantly distributed across numerous nodes globally, thereby making it virtually impervious to takedowns or tampering attempts, whether triggered by natural disasters or human intervention.
As the largest proof-of-work smart contracts blockchain globally, its security posture has undergone a substantial enhancement, allowing developers to retract the supplementary safety measures implemented in response to the 51% attacks of 2020.
The Mining Process of Ethereum Classic: A Comprehensive Overview
A subset of nodes within the Ethereum Classic blockchain network comprise miners. These miners aggregate transactions into batches, appending a timestamp, the cryptographic hash of the preceding block, and a randomly iterating number known as a nonce.
Upon completing this step, they generate a novel cryptographic stamp for the new block, which is then promptly verified against a predetermined target set by the protocol. If the target is not met, the miners promptly revert, modify the iterating random number, and retry. This iterative process continues, with miners repeatedly attempting to hit the target until one of them ultimately succeeds.
They may perform this process trillions of times per second, consuming enormous energy in the process. This phenomenon is referred to as “proof of work,” as it necessitates an immense amount of computational power and electricity to statistically guarantee that one of the miners will successfully hit the target within the standard block time of 13 seconds in ETC.
Upon successfully hitting the target, the miner broadcasts the block to the entire network, where it undergoes verification, and subsequently, the miner is rewarded with the block reward and the accumulated transaction fees.
Where to Acquire Ethereum Classic (ETC): A Comprehensive Guide
ETC, a prominent cryptocurrency boasting a substantial market capitalization, enjoys unhindered tradability on a multitude of prominent exchanges.
A diverse range of trading pairs is available, featuring stablecoins, other cryptocurrencies, and fiat currencies. Additionally, derivatives and institutional investment vehicles are also accessible. Notably, prominent exchanges such as Binance, OKEx, HTX, and Coinbase offer the option to purchase Ethereum Classic.
New to the world of cryptocurrency? Our comprehensive guide is here to walk you through the seamless process of buying Bitcoin and other digital currencies with ease.
Reservations Surrounding Ethereum Classic
Ethereum’s popularity has surged, fueled by network effects and a significant increase in developer and user engagement, despite facing competition from Ethereum Classic, which also offers smart contracts and vies for the same market share.
The primary concerns plaguing ETC are threefold: scalability, bloat, and backward compatibility – constraints that are universally shared among all layer 1 smart contract blockchains. Notably, both Ethereum and Ethereum Classic are poised to overcome these limitations through the implementation of layer 2 systems, thereby ensuring a more scalable future.
The issue of backward compatibility is slated to be resolved with the implementation of “Account Versioning” and “EVM Versioning” within the EVM standard. Meanwhile, the problem of bloating remains an ongoing effort, contingent upon enhancements in client efficiencies, data structure modifications, and other advancements.
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