What is Ethereum Classic & How Does it Work?

Ethereum Classic

The continuation of the original Ethereum stack introduced in 2015, Ethereum Classic (ETC) is a blockchain that is permissionless, decentralised, secure, and resistant to censorship. After the DAO saga, the Ethereum project broke out into two parts: Ethereum (ETH) and Ethereum Classic, due to disagreements over how to handle them. To create a public platform for smart contracts and decentralised apps, or dApps, is the overarching goal and architecture. The symbol for Ethereum Classic is ETC.

It utilises a completely untouched version of the Ethereum blockchain. Its guiding principle is to prioritise the code over all other considerations, and if there are any exploits or compromises, they shouldn’t be eliminated via hard forks that jeopardise the code’s integrity. The ETC team is committed to upholding absolute

Why Was Ethereum Classic Invented?

A sophisticated smart contract known as Decentralized Autonomous Organization (DAO), a virtual venture capital established to finance dApps, was introduced on the original Ethereum blockchain. Anyhow, DAO Tokens had to be bought with Ether if you wanted to have a voice in which dApps should be funded by the Ethereum network. If you owned DAO tokens, you were automatically included in the DAO smart contract.

Any dApp needs 20% of the votes cast by DAO token owners in order to receive the necessary funding. This smart contract’s adaptability and transparency allowed Ethereum to quickly sell $150 million worth of DAO tokens. Once you entered the DAO system, leaving was somewhat difficult but had a loophole. Split Function would allow you to obtain

The majority of the Ethereum community and its creators decided on creating a hard fork to address this problem. The $50 million that was locked up in the system might be recovered and returned to the public by rolling back the blockchain to before the attack. This is also where the ideological division took place. Some members of the Ethereum Foundation disagreed with this strategy and saw it as a central authority undermining the decentralisation ethos and the code’s integrity. They made the choice to stick with the old blockchain rather than the new one. Because of this, it is known as Ethereum Classic.

How Does Ethereum Classic Work and What Technology Is Behind It?

Ethereum and Ethereum Classic are fairly similar. It is based on a blockchain that not only generates smart contracts and apps that users can own, transfer ownership of, and interact with, but is also intended to replace payments. By allowing Turing Complete, programmers can create automated applications that can be supervised using conditional outcomes.

It keeps an exhaustive record of transaction history in a shared database, much like all the other blockchains. Additionally, it keeps track of the most recent status of each smart contract backed by the blockchain as well as user balances that can be digitally transferred to another user’s wallet. ERC-20 tokens, which may be mined using the Proof of Work algorithm, power all of the activities. Due

Is Ethereum Classic Real Money?

Remember that ETC is essentially a decentralised blockchain that facilitates the development of programmable applications and contracts rather than a payment method. It has a minimal consumer market penetration when compared to the leading cryptocurrencies. Only a few companies accept it, including Guarda Wallet, MrChrissy VPN, I49 Seed Bank, Playhub Casino, and Bitcoin Investment Spheroid Universe. It’s not even close to being a useful money.

The main distinction between a digital currency like BTC and ETC is that Bitcoin is intended to provide an alternative to traditional currencies. However, ETC is a coin that is primarily used to power the Ethereum Classic blockchain, which supports smart contracts, decentralised autonomous organisations (dApps), transactions, and more (DAOs). Because of this, the ERC-20 token

Fees & Expenses

The average transaction fee for Ethereum Classic is quite low when compared to ETH. However, for the past six months, its cost has likewise remained below $8. The average transaction cost for ETC at the time of writing is $0.0014; aside from a few brief surges, it was roughly the same last year. During the cryptocurrency boom in January 2019, ETC saw its average transaction cost rise to a high of about $6. When miners process and validate transactions, average transaction fees are calculated in US dollars. The cost is determined by a number of elements, including the requirement for Proof of Work.

Additionally, the percentages and structures of the commissions and fees levied by various cryptocurrency platforms, including exchanges, vary greatly. Usual buying and selling techniques

What Are the Benefits of Ethereum Classic?

It offers a few features unique to its technology but still has all the benefits of a blockchain. These advantages consist of:

Immutability – All transactions cannot be edited, deleted, or removed after they have been written and recorded in the blockchain. This idea was the driving cause behind the separation of ETC and ETH. Along with upholding a high degree of decentralisation, this also ensures higher security and code integrity.

Decentralized – It relies on a Proof of Work consensus mechanism, therefore a middleman or central authority are not required. They are not required for transactions, and smart contracts are self-executing.

Quick and Affordable Transactions – Your transactions are handled and validated swiftly and without the involvement of a third party thanks to an automated verification process. Additionally, it greatly reduces the cost of your transactions, so that’s not the only benefit.

High Reliability – For the past five years, the Ethereum Classic blockchain has handled a wide range of applications, smart contracts, and transactions without being affected by outside meddling, downtimes, frauds, or censorships. This demonstrates its dependability.

The main advantage of the Ethereum Classic blockchain is that it is programmable, enabling programmers to write decentralised applications (dApps) and build smart contracts. These apps might offer games, smart contracts, financial services, and other things.

Can Ethereum Classic Be Used Anonymously?

Cryptocurrencies’ anonymity feature is exaggerated. Although there is no personal data recorded on the decentralised blockchain, if you use ETC or any other cryptocurrency, you will need to use trading and exchange services that ask for personal information. Some of the most trustworthy cryptocurrency exchanges are forced to gather personal information in order to comply with Anti Money Laundering (AML) and Know Your Customer (KYC) laws. The anonymity of cryptocurrency has also been reduced by more rules.

If you exclusively utilise the blockchain, you would continue to keep some level of anonymity. Even then, anyone can find you if they work hard enough thanks to your digital footprint and meta data. So, if you want to use ETC completely anonymously,

How Safe Is Ethereum Classic?

Very safe. Cryptographic encryption makes every transaction on the Ethereum Classic network incredibly safe. The Ethereum blockchain network has a large number of nodes to quickly verify transactions because of how it has been designed. Instead of the blockchain, the bulk of cyberattacks typically target dApps or smart contracts that have been improperly coded. But ETH 2.0, which is switching to a Proof of Stake consensus mechanism, will offer more modern security.

What Teams Are Working On Ethereum Classic Development

Five recognised teams are actively working toward their objectives in order to maintain the ETC network. These groups consist of the following:

cryptocurrency consortium

It is an association created by institutions, companies, and individuals from various crypto groups to further the core principles of ETC, which include decentralisation, immutability, and resistance to censorship.

Cooperative ETC

The primary goal of this team is to oversee the development of the ETC protocol and ensure the establishment of a mature ecosystem through increased stakeholder collaboration, quicker consumer and commercial ETC adoption, and mature transparency and governance.

Core ETC
This group is in charge of maintaining the ETC project’s infrastructure tooling and specifications, as well as the Core-Geth client and EVM-LLVM backend project. The group also sees to timely updates and protocol research.

Labs ETC

This is the ETC project’s financial arm, and its main goals are to secure the necessary money and establish long-lasting connections with institutions and organisations to address the challenges.

Google Labs
It is a blockchain venture studio developing decentralised solutions and focusing on Web 3. To introduce decentralised applications, solutions, and goods, they worked with ETC.

The Ethereum Foundation, Parity Technologies, ETC Consortium, ETCDEV, ETC Cooperative, Grayscale, Commonwealth, POA Network, Chainsafe, Core Paper, Second State, and PegaSys are among the organisations that are currently making contributions to the project.

Which Financial Institutions Are Invested in Ethereum Classic?

Since ETC is not a form of payment, the Ethereum Foundation, which backs both ETH and ETC, has received support from a number of financial institutions. EEA, or the Enterprise Ethereum Alliance, was founded a few years ago and included well-known companies like JP Morgan, Credit Suisse, MasterCard, ING, and others. However, Ethereum Classic is the less well-known portion of the blockchain and is eclipsed by support and attention given to its more well-known sibling, ETH.

Ethereum Classic Mining

Ethereum mining and ETC mining are quite similar. In order to find the right answer, computational power is used. Technically speaking, miners use a hash function to generate random strings of alphabetic and numeric characters with predetermined lengths from the unique metadata of each block. Each node on the Ethereum Classic network confirms the transaction, and the blockchain is updated, if a miner discovers a hash that satisfies the target. In exchange, they get ETC tokens.