Have you ever looked at a cryptocurrency on an exchange and wondered when it was created? And no, we’re not referring to a currency that’s sinking beneath the surface along with thousands of other cryptocurrencies. We’re talking about a currency that’s popular enough to be in the top 20 crypto-list based on market capitalization.
While most of us have seen or heard about Ethereum, not everyone is aware of the history of the Ethereum Classic. So sit back and relax while I explain the concept and story of Ethereum Classic.
What Exactly Is Ethereum Classic?
Ethereum Classic is a near-identical duplicate of the existing Ethereum blockchain. It is a blockchain-based cryptocurrency and computer platform. One of the most prevalent applications is for developers to construct smart contracts. These contracts are activated to execute specific orders when certain predefined circumstances are met.
Even the Ethereum Classic cryptocurrency is named Ether, and before you get confused, their symbols differ. Ethereum’s Ether is abbreviated as ETH, while Ethereum Classic’s native token is abbreviated as ETC. Ether (ETC) is also utilized as a payment method on the Ethereum Classic blockchain to enable transactions.
“I’ve got it. They’re nearly identical. So, how do they differ from one another?”
They, of course, do. The history of Ethereum Classic is an excellent starting point for understanding how they vary.
How and why did Ethereum Classic come to be?
The solution to our question may be found in the past when in 2016, a German business called Slock launched a project called “DOA” on the Ethereum blockchain (Decentralised Autonomous Organisation).
The DOA is a smart contract-based entity that conducts transactions without human involvement or manipulation.
2016 was a challenging year since it saw some of the worst hacks of the decade, and Ethereum was not immune.
Hackers exploited a flaw in smart contracts to amass a fortune of almost $50 million. This breach sparked a significant debate since consumers were perplexed by their loss. Ethereum’s designers sought to undo the harm and turn back the clock as if nothing had occurred. Following that, Ethereum was divided into two parts: Ethereum and Ethereum Classic.
To remedy the issue, Ethereum co-founders Gavin Wood and Vitalik Buterin assisted in hard forking the original Ethereum blockchain, resulting in the Ethereum we know today.
This separation, however, caused Ethereum users to conflict with the objective of their blockchain technology. As we all know, Blockchain technology is a digital ledger that captures all transactional data and can never be changed or destroyed.
Some cryptocurrency community members were offended by the thought of human intervention in the initial Ethereum blockchain. Users who had been the victims of theft, on the other hand, applauded the change in order to recoup their losses. To be honest, the ethical and technological components of Ethereum were the focal points of this disagreement.
Those that wanted to stay faithful to the original Ethereum blockchain stayed and dubbed it Ethereum Classic.
What is the difference between Ethereum and Ethereum Classic?
Now it’s time to distinguish between the two.
Technically, these chains are identical and only differ in the manner in which they are updated. The original Ethereum, currently known as Ethereum Classic (ETC), is wholly distinct from all Ethereum upgrades (ETH).
This implies that Ethereum Classic is entirely programmed using the original model. It also does not include any revisions to Ethereum’s previous improvements, including the Ethereum 2.0 version.
This also implies that Ethereum Classic is a ledger that retains a record of the famed hack, but Ethereum does not.
Is Ethereum Classic a worthwhile buy?
We hope you now have a clear idea of what Ethereum Classic is. However, the crucial question is whether this is a suitable investment for you.
Ethereum Classic, an open-source blockchain platform, offers smart contract capability, which is primarily geared at developing and running decentralized apps. This is comparable to the Ethereum system, but Ethereum Classic looks to be vying for the same level of popularity.
Given ETC’s difficulties, it’s difficult to determine whether it’s a worthwhile investment. The future of Ethereum Classic looks to pose several dependability and scalability difficulties, implying that the coin lacks clarity and does not appear promising compared to Ethereum.
Following a series of 51% attacks, many developers doubted the network’s viability. A 51 percent occurs when a big miner controls the hash rate of a network by moreover than 51 percent and then uses it for double-spending and currency theft. Overall, Ethereum Classic has been hacked 51 percent of the time, making it very hazardous.
Specific problems have hampered ETC’s long-term growth. Some of the issues include a lack of support, visibility, and security. Furthermore, unlike Ethereum, Ethereum Classic has a Proof-of-Work-based paradigm, which has become a target of 51 percent assaults compared to other consensus protocols.
Nonetheless, the price of ETC has shown remarkable durability and performance during the preceding year. Despite having weak security, the token has remained primarily unaffected. This suggests that investors’ significant attention is on short-term price movements rather than primary or long-term security.
Conclusion
That’s all there is to Ethereum Classic! We discussed some of the benefits of this cryptocurrency and why it was founded. We also discussed if it is a worthwhile investment and looked at Ethereum Classic’s future. Nonetheless, cryptocurrency markets constantly bring new and exciting perspective coins that are expressly built to decentralize. Aside from that, the primary purpose of Bitcoin and Ethereum is worldwide acceptance. So, what are your thoughts on Ethereum Classic price prediction? Is it worthwhile? Please leave a comment below to let us know what you think!