In this Ethereum tutorial, we will learn about Ethereum Classic. Here, we will understand the origin of the Ethereum Classic. Also, we will cover the following topics.
- Origin of Ethereum Classic
- What is Ethereum Classic
- What is Ethereum Classic used for
- Limitations of Ethereum Classic
- How Ethereum Classic Works
- Ethereum Classic vs Ethereum
- What is Ethereum Classic Cryptocurrency
Origin of Ethereum Classic
In the starting, there was just Ethereum, proposed by Vitalik Buterin in late 2013. After this, Ethereum got released as a platform in 2015. Moreover, Ethereum also came with its native cryptocurrency, Ether. Consider Ether as a transferable token used to perform transactions on the Ethereum network.
In 2016, Slock.it, a German business, developed an Ethereum-based Decentralized Autonomous Organization project. Moreover, this DAO project raised around $150 million. But soon, a hacker exploits a weakness in the smart contract and, able to steal around $50 million.
After this incident, the Ethereum community held a vote. And huge percentage decided that the Ethereum code needs modification in order to recover the stolen funds. However, a minority still disagreed with the modifications. As a result of the dispute, a new blockchain, currently known as Ethereum, came into existence.
Moreover, instead of switching to the new blockchain, the minority opted to mine the old version of the blockchain. And this eventually resulted in the emergence of the Ethereum Classic.
Now here comes a question, what is Ethereum Classic.
Read Ethereum Ecosystem
What is Ethereum Classic
We can consider Ethereum Classic as an original interpretation of Ethereum Blockchain. And it aims to keep the core concepts of decentralization and immutability by maintaining unbroken transaction history.
Ethereum Classic, in a nutshell, is a decentralized open-source computing platform based upon blockchain technology. Moreover, it enables developers to create and deploy smart contracts, and it also comes with a built-in native digital currency ether classic (ETC).
Now, Ethereum Classic and Ethereum were essentially identical technological inventions at the time of the split. However, they have subsequently matured in their distinct ways.
Moreover, Ethereum Classic, in its proper shape, aspires to be a smart-contract platform, scalable network for payment, and decentralized digital value store.
What is Ethereum Classic used for
Till now, we got a clear idea about Ethereum Classic and its existence. Next, let’s, discuss the usability of Ethereum Classic.
- First, the objective of the Ethereum Classic is to be a smart contract-based global payment network that can function without any centralized authority.
- Similar to other cryptocurrencies, Ethereum Classic most likely aims to a digital store where we can store and exchange ETC while retaining its value.
- Moreover, Ethereum Classic is primarily used to pay for decentralized computational processing. On the Ethereum network, we use ETC to pay for the execution of transactions and smart contract functionalities.
- However, Ethereum Classic also has its native token named Ether Classic (ETC). Now, ETC is likewise a native cryptocurrency with a defined market supply cap and a monetary strategy.
Limitations of Ethereum Classic
Despite the fact that both Ethereum Classic and Ethereum support smart contracts, Ethereum is considered more reliable than the two networks. And the main reason behind this is the limitations of the Ethereum Classic.
So, in this section, we will discuss some of the limitations of the Ethereum Classic.
- Security: Essentially, Ethereum Classis is considered to be an insecure chain. Moreover, smart contracts are likely to be a security risk, especially given the fact that Ethereum Classic has previously been hacked.
- Low user adoption: The user adoption of Ethereum Classic is still at a low level. Where the DApps on Ethereum Classic is very less, that too with fewer users. Ethereum on the other hand tends to have tens of thousands of DApps.
- Scalability: Even after multiple updates, Ethereum Classic’s payment systems’ scalability remains one of the most crucial challenges in the future.
- Less Engagement: Ethereum Classic is also an open-source project, and its Github repository is also big. However, it lacks engagement as compared to Bitcoin or Ethereum.
Read How to Setup Private Ethereum Blockchain on Windows
How Ethereum Classic Works
Now that we got a clear idea about Ethereum Classic let’s, discuss the working of Ethereum Classic.
Ethereum Classic is a fork of Ethereum, and due to this, it is similar to how Ethereum works. Ethereum Classic is also a blockchain-based platform. It is a decentralized system that facilitates a system for cryptocurrency but also helps to create smart contracts.
It also facilitates developers to use of Turing Complete programming language to design automated apps. Similar to other distributed ledgers, Ethereum Classic also keeps a shared database with a complete record of the transaction history.
Moreover, it also keeps track of the recent state of all blockchain-powered smart contracts, as well as the balances of users’ wallets.
Also, Ethereum Classic utilizes a Proof-of-Work consensus mechanism, similar to Ethereum. And PoW mechanism helps to mine tokens that power most of the activities on the Ethereum Classic network.
Ethereum Classic vs Ethereum
In this section, we will discuss some essential differences between Ethereum Classic and Ethereum.
Fundamentals
After the dispute, Ethereum migrated to a new blockchain with a large number of users and miners. Also, it focused on decentralized decision-making, conflict resolution mechanisms, and some additional protocols.
On the other hand, Ethereum Classic stick to using the same protocol and relied on immutability and code of law.
Community & Support
The main difference between both Ethereum and Ethereum Classic is their community support and development. Ethereum’s community comprises original developers. Moreover, there are more than 200 businesses are currently employing Ethereum.
On the other hand, Ethereum Classic’s communication comprises only 10% of the original community. Moreover, Ethereum Classic was unable to draw that much audience as compared to Ethereum.
Consensus
Both of the smart contract platforms utilize the Proof of Work consensus protocol. But, Ethereum is experimenting with Proof of Stake and intends to abandon PoW entirely.
Ethereum Classic, on the other hand, has no intentions to transition to PoS. Moreover, Ethereum Classic is unable to access the majority of Ethereum updates.
Price
The price is one of the most noticeable distinctions between Ethereum classic and Ethereum.
In truth, both Ethereum and Ethereum Classic have a healthy market capitalization. The increase is exceptional, though, due to Ethereum’s popularity.
After Bitcoin, Ethereum is the second most popular cryptocurrency and one of the most prominent blockchain systems on the market.
Ethereum Classic, on the other hand, is not much popular in cryptocurrency and not immensely popular among developers.
What is Ethereum Classic Cryptocurrency
The native token of Ethereum Classic, ETC, is a cryptocurrency that we can buy and sell on any digital currency exchange.
Moreover, ETC is utilized as a reward for network nodes participating in the mining process. And it is given to the miners who validate some computation made on Ethereum Classic’s EVM.
Also, currently, the value of 1 ETC is around 29.26 USD (United States Dollars). However, this value changes every minute in a day.
So, in this tutorial, we have learned about Ethereum Classic. Here, we have understood the origin of the Ethereum Classic. Also, we have covered the following topics.
- Origin of Ethereum Classic
- What is Ethereum Classic
- What is Ethereum Classic used for
- Limitations of Ethereum Classic
- How Ethereum Classic Works
- Ethereum Classic vs Ethereum
- What is Ethereum Classic Cryptocurrency
I am Bijay, a Microsoft MVP and founder of TSInfo Technologies, a SharePoint development company. Currently focusing on getting expertise on Ethereum, Solidity, Bitcoin, Cryptocurrency, Blockchain, etc. Sharing my expertise and tutorials on Bitcoin and Ethereum related technologies. Read More…