Ethereum Classic: The Resilient Blockchain Holding Firm on Principles
Ethereum Classic (ETC) is an open-source, decentralized, blockchain-based cryptocurrency platform that runs smart contracts. Formed in 2016 due to a hack of a decentralized autonomous organization (DAO), Ethereum Classic remains steadfast in its philosophy of immutability: ‘Code is Law.’
Key Highlights
- Origins: Ethereum Classic is an open-source, decentralized blockchain that emerged in 2016 following a significant hack of The DAO, a smart contract-based organization on the original Ethereum blockchain.
- Philosophy: Emphatically adhering to the principle that ‘Code is Law,’ Ethereum Classic participants chose not to reverse the hack, preserving the sanctity of the blockchain’s history.
- Smart Contracts: The platform retains the functional capacity to run smart contracts, automating transactions and interactions based on predefined conditions.
- Distinct From Ethereum: Although sharing common roots, Ethereum Classic distinguished itself by maintaining a proof-of-work consensus mechanism and a capped supply of 210.7 million ETC.
Understanding Ethereum Classic: The Immutable Blockchain Network
Ethereum Classic functions primarily like Bitcoin but with enhanced functionalities, such as running self-executing smart contracts. These contracts can conduct activities autonomously once specific conditions are met, ensuring trustless and reliable transactions without third-party interference.
Historical Context
Ethereum’s original blockchain was conceived by Vitalik Buterin and the Ethereum Foundation and launched in 2015. With the DAO managing to attract over 18,000 investors contributing more than 11 million ETH, a vulnerability exploited by hackers led to the loss of one-third of the accumulated ether. This crisis resulted in Ethereum splitting into two entities:
- Ethereum (ETH): The new blockchain, with changes implemented to invalidate the hack.
- Ethereum Classic (ETC): The original, unaltered blockchain.
Ethereum Classic’s Scalability Challenge
One significant challenge has been Ethereum Classic’s scalability. While its network can manage between 10-20 transactions per second, this is notably fewer than traditional payment systems. Continuous updates have been implemented to address these limitations, but scalability remains a concern.
Future Perspectives of Ethereum Classic
Although still in the shadows of Ethereum in terms of global popularity, Ethereum Classic holds a dedicated community and undergoes constant development. Periodic upgrades keep the platform relevant, providing compatibility with Ethereum’s network changes and aiming to establish ETC as a compelling digital store of value.
Distinctions from Ethereum
Prominent differences include:
- Proof-of-Work vs. Proof-of-Stake: Ethereum Classic maintains its proof-of-work mechanism, where competitive mining remains integral.
- Token Supply: Ethereum Classic has a fixed limit on its total token supply of 210.7 million. This includes halving-like events every 5 million blocks, gradually reducing block rewards.
Vision and Goals
The objective behind Ethereum Classic is to build a global utility to facilitate decentralized smart contracts without central governance interference. Prospects alike with other cryptocurrencies look towards establishing a firm footing as a digital store of value.
Forward Looking Sentiment
While remaining clear about uncertainties in the cryptocurrency domain, particularly market prices, Ethereum Classic aims to retain its esteemed base and robust participation to stay competitive. Its continued presence on exchanges and foothold amongst miners points towards sustained interest, despite the uphill challenge.
Considering Ethereum Classic as an Investment
Whether Ethereum Classic is a suitable investment hinges on personal attitudes towards risk, investment strategy, and outlook for blockchain’s competing potentials.
Related Terms: Ethereum, Blockchain, Cryptocurrency, Smart Contracts, Open-Source.
References
- The New York Times. “A Hacking of More Than $50 Million Dashes Hopes in the World of Virtual Currency”.
- Ethereum. “Hard Fork Completed”.
- Ethereum Classic. “Apps and Protocols”.
- Coinbase. “All Assets by Market Cap”.
- Ethereum Classic. “Classic History”.
- Ethereum Classic. “The Ethereum Classic Fifthening Is in June 2024!”
- Ethereum Classic Improvement Proposals. “ECIP 1017: Monetary Policy and Final Modification to the Ethereum Classic Emission Schedule”.
