Currency name(s): Ethereum Classic (ETC), but sometimes it is referred to as Ether classic
Genesis Block: July 2015
Total Supply: The total supply at the moment is around 111 million ETC tokens, out of which all are circulating; the maximum supply is capped at 210 million ETC tokens
Algorithm: Proof-of-Work algorithm, for the time being; there is a plan to switch to proof-of-stake; Ethash
Features: decentralized, immutable, fungible, censorship-resistant, DApps-compatible, supporting smart contracts
The Ethereum Classic network has been around for a while now. It was created as a result of a hard fork of an existing cryptocurrency network, Ethereum. Before 2016, both Ethereum (ETH) and Ethereum Classic (ETC) were one and the same. However, a powerful hack occurred and that resulted in a smart contract on the network to be compromised and the community formed strong opposing opinions on how to secure the Ethereum blockchain. This hack targeted the DAO – or the Decentralized Autonomous Organization – a smart contract that was created on the Ethereum network that was intended to later be used to fund the development of other DApps. Essentially this was another smart contract on the network, but it was very popular and accumulated a large percentage of Ethereum tokens available then. After the hack occurred, a large part of the community wanted to roll back the blockchain code before the hack so that the stolen funds would be returned, but a small part of the community didn’t want to change the blockchain due to ethical reasons. Therefore, due to the disagreements within the community and not reaching the full consensus, the had fork took place and today we have both Ethereum and Ethereum Classic as independent networks, with their own tokens as fuel for sustaining them.
Both Ethereum and Ethereum Classic networks serve as a platform to execute smart contracts and develop decentralized applications (or DApps for shorter). But, Ethereum (ETH) is based on a new blockchain code, while Ethereum Classic (ETC) continued to develop the original blockchain code that was in place before the hard fork. That is why the community refers to the Ethereum Classic network as immutable – even though the hack happened, the code was not modified by the human hand in any way, only developed further.
The technology behind the Ethereum Classic cryptocurrency network is based on smart contracts. Smart contracts are essentially automated contracts which are executed once the conditions included in the contracts are met. This kind of approach, with implementing smart contracts, actually moves the user further away from intermediaries such as banks, insurances, and various other services. The nodes that keep the network alive and are in charge of running it so it can automatically execute the smart contracts are rewarded in Ethereum Classic tokens. Any user that is contributing to the execution and transaction processing of the smart contracts will be awarded for their time and contribution.
On top of smart contracts, the Ethereum Classic network provides a virtual machine which is used for computations and execution of the smart contracts. It can also run any program if the developers code it into the virtual machine. So, the users are not in charge of the transactions themselves but of maintaining the virtual machine that is the Ethereum Classic network.
Regarding the decentralized applications or DApps, the Ethereum Classic network provided a unique Software Development Kit (or SDK) that the developers can use to create various applications. The network’s focus is on the internet of things (or IoT) as the blockchain is a great platform to establish a machine-to-machine communication and leave the human factor out of the equation.
Finally, the Ethereum Classic network is based on the proof-of-work verification process, meaning that the whole blockchain needs to be verified before a block is added. Then, once the verification is completed, and a consensus reached, the new block is added onto the blockchain.
Our Ethereum Classic market analysis has shown that the network’s token is currently stable, sitting at a price of around $6.20 per token and experiencing small daily fluctuations. Currently, it sits in the top 20 most notable cryptocurrency tokens of the world. The market cap for the whole Ethereum Classic network is around $700 million. The highest price per token ever achieved was $47.77 in December 2017 during the cryptocurrency price surge, while the lowest price per token ever recorded was shortly after its launch in July 2016 where it was sitting at around $0.45.
At the moment, Poloniex, Binance, and HitBTC among others have established trading pairs and those interested can buy, sell and hold Ethereum Classic tokens in exchange for Bitcoin, Ethereum (ETH) or Tether. Bitfinex and Kraken allow fiat currency trading pairs as well, but these trading pairs are very rare at the moment.
The Ethereum Classic network has remained true to the core principle with which the original Ethereum blockchain has started: code is law and human influence must be either reduced to a bare minimum or avoided completely. This is what the smart contracts were created to do – instead of entities acting as intermediaries in transactions, all would be done automatically between machines. Also, the goal of the Ethereum Classic network is to create a worldwide decentralized supercomputer, the one that would be able to process transactions, stop frauds within the network and enforce the rules and agreements that were created on the network itself. But the developers behind the Ethereum Classic network are not as vocal as the Ethereum (ETH) ones, they are truly following the decentralized spirit of what Ethereum used to be – a community that is pushing its way forward with innovation and new technological breakthroughs. This network has many followers and adopters, which fight for the blockchain to continue to be immutable after all – no hard forks, no rollbacks and no corrupting the code. The community believes that, in the long run, the principles behind the Ethereum Classic blockchain and network will bring a great amount of value to its adopters.
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