What is Ethereum Classic (ETC)?
Ethereum Classic is an open-source, decentralized, and blockchain-based cryptocurrency that utilizes smart contracts. It was created after the decentralized autonomous organization (DAO) of the Ethereum blockchain was hacked in 2016. This blockchain-based cryptocurrency was specially designed as part of the dispute that disturbed the whole cryptocurrency project. After the dispute, the original blockchain was divided into two divisions, namely Ethereum and Ethereum Classic. As the name suggests, Ethereum Classic remained the original blockchain by adhering to the principle of Code is Law, and Ethereum continued working for radical change.
After the sudden split, various features and elements were implemented to expand and enhance the Ethereum Classic blockchain. The major aim of the ETC project is to provide global payment networks using smart contracts. ETC functions without any centralized bodies. Even though both Ethereum Classic and Ethereum offer smart contracts and focus on the same market, Ethereum is comparatively more popular than the latter. After Bitcoin, Ethereum is second in the list of the world’s most popular cryptocurrencies.
Ethereum Classic serves the same purpose as any other cryptocurrency. However, it has not gained much attention in the markets mainly because the original blockchain lacks many updates. It does not receive any help from the hard fork or the new chain on which Ethereum is operated. ETC also adheres to the ideologies of its original foundations and aims to preserve the unadulterated Ethereum code.
Key differences between Ethereum Classic (ETC) and Ethereum (ETH)
Principles and ideologies: ETC stands for preserving the ideological foundation of the blockchain. It is not open to any changes or alternations. On the other hand Ethereum blockchain is open to adaptability and updations. It is open to new changes to enhance the blockchain and solve the existing issues.
Security: Even though both ETC and ETH have secured blockchain networks, ETH has an efficient security system compared to ETC. Since the Ethereum Classic blockchain is behind many updations it has been facing many issues that fail to provide a proper security system.
Scalability: Ethereum Classic and Ethereum are both open-source blockchains. But Ethereum is more scalable as it can handle large transactions at a higher speed compared to the Ethereum Classic’s outdated network makes it difficult to handle large orders.
Consensus mechanisms: Ethereum Classic operates on a proof-of-work (PoW) mechanism that enables miners to verify transactions on the blockchain. On the other hand, Ethereum has transformed into a proof-of-stake (PoS) mechanism that allows the participation of the validators to stake their assets on the blockchain network.
Supply: Ethereum Classic adheres to a monetary policy that follows a limited supply of around 210 million dollars in the total lifespan. Ethereum blockchain does not have a fixed or limited supply.
Support from the community and developers: Even though Ethereum Classic has a loyal community, it has not yet much attention and support from the developers and the public. Ethereum blockchain has gained widespread attention and appreciation from the community. It has bagged the title of being one of the most popular companies with its larger audience and community support.
Is Ethereum Classic a good investment?
Ethereum Classic maintains a distinctive position in the crypto market. The future of Ethereum Classic looks quite promising as it operates on a valuable and significant blockchain network. In the last few years, it gained a significant place among other cryptocurrencies. It was even ranked 30th among other cryptocurrencies as it revealed potential growth in the investment sector.
Based on the technical estimates, the investment towards Ethereum Classic appears to be neutral. Considering the past year’s performances of the cryptocurrency it has had its ups and downfalls. Many believe that the monetary policy of ETC and the proof-of-work mechanism the blockchain operates on are the constant strength of the ETC blockchain. These features could increase the value of the ETC blockchain over time thus stabilizing its position in the crypto markets.
On the other hand, the ETC blockchain also remains vulnerable to many challenges. Scalability is one of the major limitations of ETC blockchain that many investors consider necessary. The blockchain is not adaptable to any innovations and changes making it lack an advanced and secured network. These factors are important considering the rapid growth of technologies. ETH blockchain overtakes ETC in all these factors.
Conclusion
Ethereum Classic completely operates upholding the principles of the original Ethereum blockchain. Despite the various challenges, ETC blockchain has a significant value in the crypto industry that cannot be overlooked. Ethereum blockchain grew because the original blockchain needed solid technology after the DAO hacking incident took place.
According to the Ethereum Classic roadmap, many new upgrades and features are to be released to enhance the blockchain. These upgrades will be made adhering to the idealogy of the original blockchain. Both ETC and ETH have their own unique advantage and limitations. Users can choose between the two depending on their needs and preferences.