Ethereum Classic

Ethereum Classic (ETC) represents the original Ethereum (ETH) blockchain, which made its debut in July 2015. It serves primarily as a network for smart contracts, enabling the hosting and operation of decentralized applications (DApps). Its native cryptocurrency is called ETC.

Since its inception, Ethereum Classic has strived to set itself apart from Ethereum, with the development paths of both networks increasingly diverging over time.

The initial aim of Ethereum Classic was to uphold the integrity of the original Ethereum blockchain. This effort came after a significant hacking incident resulted in the theft of 3.6 million ETH.

Ethereum Classic is essentially the original Ethereum chain, and its founding figure is Vitalik Buterin, the creator of Ethereum.

In July 2016, a major hard fork occurred within the Ethereum community due to disagreements over whether to alter the blockchain to undo the effects of a large-scale hack. This incident involved The DAO, a decentralized autonomous organization that had amassed around $150 million through an initial coin offering (ICO) months earlier.

Ethereum Classic emerged as the blockchain that did not implement the fork. Developers emphasize that the project does not have an "official" team behind it, and it boasts a "global development community" that operates as a permissionless 'do-ocracy,' allowing anyone to contribute.

Ethereum Classic stands out due to a mix of unique characteristics:

* Proof-of-Work: ETC remains committed to the proof-of-work consensus mechanism, recognized as one of the most secure systems in existence.

* Sound Money: As a proof-of-work blockchain, ETC is akin to digital gold. The cost to produce this currency mirrors the cost of generating blocks, supported by a fixed monetary policy that caps the supply at 210,700,000 ETC.

* Programmability: With smart contract capabilities, ETC offers greater flexibility and utility compared to simpler cryptocurrency networks like Bitcoin or Litecoin.

* Full Replication: ETC achieves high security by fully replicating data across all network nodes. Unlike other smart contract blockchains that adopt "sharding," "parachains," or "sidechains," which may compromise security, ETC maintains full replication.

* Composability: In ETC, composability means all applications enabled by smart contracts reside within the same ecosystem. This ensures equal security and facilitates complex interactions among them.

* Size: Being a highly substantial blockchain, particularly as the largest in its category, enhances ETC's security. It is the largest smart contract blockchain that utilizes proof of work while having a capped monetary policy.

The combination of these distinctive features makes ETC-based dApps some of the most secure in the world.

Ethereum Classic (ETC) and Ethereum (ETH) are two distinct blockchain networks that once shared a common foundation but have since parted ways in terms of philosophy and development.

Ethereum Classic is essentially the original Ethereum blockchain, launched in 2015. It is a decentralized, open-source platform that allows the creation and deployment of decentralized applications (dApps) and smart contracts. ETC secures its network using a Proof-of-Work (PoW) consensus model.

Conversely, Ethereum emerged from a fork of the original Ethereum blockchain in 2016, as a response to a hack that led to the loss of Ether worth millions of dollars. The Ethereum community adopted a hard fork to reverse the hack's effects, restoring the stolen funds to their rightful owners. This decision resulted in the formation of two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC).

A major distinction between Ethereum Classic and Ethereum lies in their governance structures. Ethereum tends to have a more centralized setup with a core development team making key decisions about the platform's future. In contrast, Ethereum Classic takes a more decentralized approach, with decisions driven by community consensus.

Additionally, their technology roadmaps differ significantly. Following "The Merge" in September 2022, Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus model. Meanwhile, Ethereum Classic has remained dedicated to its original PoW algorithm, staying aligned with its decentralized philosophy.

Ethereum Classic started with a technical foundation similar to Ethereum, differing chiefly in its handling of DAO hack transactions.

Since its launch, Ethereum Classic has made adjustments to its tokenomics, setting a cap on its supply in December 2017. The total supply is capped at 210,700,000 ETC, which is about ten times that of Bitcoin (BTC), whereas Ethereum (ETH) does not have a supply cap.

ETC operates using a PoW mining algorithm akin to Bitcoin's approach, where miners compete to validate the blockchain and are rewarded with new coins. The block reward for ETC decreases over time by 20% every two years or 5 million blocks, with the next reduction slated for block 20,000,000, expected around June 2024, from 2.56 ETC to 2.048 ETC per block.

Proof-of-Work (PoW)

Ethereum Classic has experienced attacks in the past when it was a smaller chain, including 51% attacks that aimed to control the network's mining hashrate to conduct fraudulent transactions and double-spend coins, the most recent being in August 2020.

The network relies on the Proof-of-Work (PoW) consensus model, where miners solve complex, computational puzzles to create and validate transaction blocks, thereby securing the network.

The blockchain is fully replicated, a feature that ensures redundancy across numerous nodes worldwide. This replication makes it nearly impossible for natural disasters or human interference to disrupt or manipulate the network.

Now that Ethereum Classic is the largest proof-of-work smart contract blockchain globally, its security has improved significantly, allowing developers to remove some of the safety measures implemented after the 2020 attacks.

Ethereum Classic's blockchain includes a subgroup of nodes known as miners. These miners compile transactions into batches, attach a timestamp, include the previous block's cryptographic hash, and add a nonce, which is a random number.

They then create a new cryptographic hash for this new block and check if it meets a specific target set by the protocol. If not, miners adjust the nonce and try again, repeating this process as necessary. This trial-and-error method can occur trillions of times per second and is known as "proof of work" because it requires significant computational effort and energy. Statistically, one miner will eventually succeed in hitting the target within the protocol's set block time, which is 13 seconds for ETC.

Once a miner hits the target, they broadcast the block to the rest of the network for verification, after which they receive the miner reward along with the block's transaction fees.

As a cryptocurrency with a significant market presence, ETC is widely available on numerous major exchanges.

You can trade ETC against stablecoins, other cryptocurrencies, and fiat currencies. There are also derivative options and institutional investment tools available. Some of the exchanges where you can buy Ethereum Classic include Binance, OKEx, HTX, and Coinbase.

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