If you know nothing about Ethereum Classic (ETC) or cryptocurrencies in general, that’s a big problem. After all, aren’t they the center of the economy today?
To ensure you have the basics done, a cryptocurrency is a digital currency that has been designed to provide an alternative to the conventional currencies we use today. More specifically, out of the centralized system of the economy.
Among all of them, you can find over a hundred cryptocurrencies, if not more. Thus, we don’t blame you for not being able to keep up with what changes, adds, or is deleted.
In the case of Ethereum Classic, ETC, you may be familiar with Ethereum alone. Sometimes, people tend to get confused with both of them and even reach the point of believing they’re the same.
However, all cryptocurrencies have more purposes than just being spent on groceries or other expenses. Thus, ETC comes with more than you being capable of using it to pay your bills or buy some products.
To understand the extension of the currency and how it works, we need to go over different factors, when it was created, who created it and why, and how it works.
Therefore, this is going to take quite some time, but we promise to leave everything clear by the end of the article.
And yes, you will be able to tell whether this should be your next investment or not.
What Is Ethereum Classic (ETC)?
First, we must leave it clear that cryptocurrencies are always related to a blockchain or ecosystem.
In this case, the ecosystem is what makes the name we are reviewing today, while ETC is often used as the native cryptocurrency you can use to operate in it.
With this in mind, Ethereum Classic is an open source-based distributed cryptocurrency platform.
It runs smart contracts, and it is very similar to the original Ethereum.
Although the blockchain and currency follow the same name or have part of it, it was created in 2016 as a result of a hack to the system.
Most people know the main Ethereum, but not many dive deep enough to be knowledgeable about Ethereum Classic. However, its origins come from more than four years ago, unlike what most people believe.
Before that, to better understand the option of the system, you must know smart contracts, which follow the principle of “Code is Law,” are autonomous digital applications that can run on their own when programmed.
These applications include the ATM and Bitcoin systems which you can use with native cryptocurrencies or other options according to the blockchain or applications.
Ethereum Classic: Creation, Ether & Upgrades
The origins of ETC aren’t that hard to understand. However, they are indeed a bit turbulent due to an incident during its launch.
Using Frontier, the Ethereum mainnet was released on July 30, 2015, but it was not available at that time due to a hacking issue.
Due to this hacking of a third-party project, the Ethereum Foundation released a new version of the Ethereum mainnet on July 20, 2016.
This was accompanied by an irregular state change that removed The DAO theft from the Ethereum blockchain history.
To address the issue created with the hacking event, the Ethereum foundation applied their trademark to the altered version of Ethereum’s blockchain.
In other words, the altered version of the blockchain followed the trademark. However, the older and unaltered version of Ethereum was renamed as Ethereum Classic.
The older version took the name of this system, while the new one, after the adjustments of the ones involved in the blockchain to avoid any more hacks, was changed for the old name to avoid confusion and guarantee safety.
We know that it can be hard to understand, but keep it as simple as understanding that the old is the new and vice versa. Does it make sense?
Now, we have to clarify that Ethereum Classic uses Ether as its native token, and it does follow the code “ETC.” This means that whenever someone follows it, they are usually referring to the cryptocurrency and not necessarily to the blockchain.
Network nodes involved in the blockchain are rewarded with Ether for a process called ” mining.” This validates computations on Ethereum Classic’s EVM.
The current ETC monetary policies were implemented on December 11, 2017. It aims to achieve the same goals as Bitcoin, which is mechanical, algorithmic, and capped.
ETC can be used to exchange for network and cryptocurrency transaction fees, digital assets, commodities, currencies, and products and services.
Going back to the creation and adding the upgrades of the blockchain and cryptocurrency so far, we decided to organize the details:
- The Frontier released took place on July 30, 2015.
- Frontier Thawing Upgrade took place on September 08, 2015. The platform implemented an
- Ice Age at block 200,000. This is designed for the system to change its mechanism from Proof-of-Work to Proof-Stake.
- There’s a homestead upgrade on March 15, 2016, as a second major version.
- TheDAO, smart contracts, security, and other details of the blockchain have been improved between 2016 and 2020.
- Even today, in 2021, the platform continues to upgrade and add new elements, like Phoenix Mordor testing, “Thanos” upgrade to recalibrate the epoch length used in some calculations.
How Does Ethereum Classic Really Work?
If you have read about Ethereum before, you know how this version works.
Ethereum and Ethereum Classic have the same fundamental functionalities.
Developers can use open-source code to create and manage their decentralized applications (dApps). They can create ERC-20 tokens for their applications.
However, there is indeed a difference between both versions.
Ethereum Classic’s main distinguishing factor is its compatibility with updates on the ETH Blockchain.
By definition, a hard fork is a backward-incompatible update. The new rules are implemented so that the new chain and its users (nodes) are completely disconnected from the original chain.
The original chain (Ethereum Classic) cannot access updates on the new Ethereum chain.
This means that ETC can’t be updated. However, the foundation of the Ethereum Classic is more ideological than any other.
Its greatest significance or relevance lies in which preserves the original, unadulterated Ethereum Code. ETC is an unaltered historical record that saves the details of the Ethereum blockchain or network.
Although ETC isn’t an issue in how it operates, it isn’t a secret that ETH (Ethereum) is a favorite in cryptocurrency market capitalization.
Also, we have to clarify that Ether is the currency used for both networks, which can be a bit confusing, but you will usually find them separated in ETC and ETH.
Finally, the supply of ETC is set at 129.5 million coins. In market cap, this supply s equal to $5.5 billion. The coins are what nodes/users utilize inside the network to create smart contracts and operate while mining.
Meanwhile, ETH has 118.5 million in circulation, and the market cap is set at $385 billion at the time of writing this.
Ethereum Classic price is $54.60, while Ethereum or ETH is trading at $4,330.60 (at the moment of writing this). So, unlike what you might think, it isn’t quite a new cryptocurrency.
What Makes Ethereum Classic (ETC) Functional?
Since both networks are essentially the same, even one offers more safety than the other (that one is ETH).
People often wonder why they would choose ETC to operate with smart contracts when Ethereum has proven to work well and both systems (to keep it short) the same token.
If you ask our personal opinion, we aren’t fans of ETC, but we do understand why some people decide to use it over ETH.
For you to have the ideas clear, it is necessary to go over the main goal of Ethereum Classic.
The project’s goal is what you would expect: To become a global payment network through smart contracts.
Ethereum Classic strives to remain a virtual store of value. This means that it can be stored and exchanged while maintaining its value.
Its purchasing power can be used to convert it into cash quickly or purchase another asset similar to money. In this case, it can be more functional than Ethereum, but with the current price of the ETH token, it is hard to come up with a better option like this.
However, it is indeed a good alternative for those unable to invest in ETH. But, overall, it isn’t a good substitute for Ethereum.
Although they follow the same concept of Ether as the currency, they have parted ways in this matter, and both their tokens are considered individual currencies.
The issue with choosing it is that it continues to suffer from several structural weaknesses that make it not so safe for long-term projects.
This is why the attention was placed on Ethereum. Considering what we mentioned about ETC not being upgraded and the change in the trademark, it is expected that it is unable to keep up with Ethereum (for now.
But to summarize this part: It is functional because it offers the smart contracts and same options as ETH, but probably simplified. However, it isn’t as safe nor valuable as the main network and token.
Ethereum Classic (ETC) Use: More than Contracts
Besides the smart contracts we have mentioned tirelessly throughout the article, you can rely on ETC for more uses.
As with any other decentralized blockchain and currency, it offers the benefit of this governance whenever you run the contracts or operate with dApps.
However, the token itself can be used to pay for specific expenses.
Since it isn’t as used as ETH, it can be a bit tough to find businesses or companies that accept it as part of a payment, but it isn’t impossible.
Trading options like coin market and Binance allow you to trade with the currency, especially if you are a node in the network.
We hate to disappoint about the rest, but ETC isn’t really a big token you can use for many things.
Since it continues to be inferior to its counterpart, ETH, the uses fall into the smart contracts and dApps on the network and trading with other currencies in the right platforms.
Unlike other currencies like THETA or even DOGE that are meant to be used on streaming platforms or online payments and actions, ETC doesn’t have any particular use set by the users or holders.
In fact, we hold part of the supply available, but we don’t usually find particular use for it rather than the previous ones.
Investing in ETC & Cryptos? Not Our Favorite
Despite not being our favorite method to invest money, spending money on cryptocurrency is not a bad idea.
In 2021, cryptocurrencies seem to be increasing dramatically, and it can be hard to ignore such a market cap whenever you wake up and have a look at the value of each currency.
However, we don’t love it for one simple reason: This market can be volatile, and you could lose money in no time.
Although you can follow the principle of people who invested in Bitcoin and are now rich, it is hard for this to happen twice.
Also, ETC isn’t the best option when compared to ETH, and it continues losing relevancy despite its price increases in recent days due to internet memes.
It can be a mess to keep up with cryptos, which is why we prefer putting our money in actual business options.
However, if you decide to bet your money, here’s some investment advice: Care about price volatility, other cryptocurrencies, major investors, and remember it is a decentralized currency.
But following our option of business opportunities, our financial advice would be other, to invest in real businesses. One of them is lead generation, and we are happy to work from home and have passive income without having to be worried about a market every day.
You don’t need to take too many risks with this option, and you aren’t betting on your luck.
Lead generation can be easier and more effective than many people believe.
You can easily make thousands of dollars if you’re lucky and work hard, and your ROI is guaranteed.
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