What is cryptocurrency Ethereum Classic (ETC) and how does it work?

Ethereum Classic is a blockchain-based distributed cryptocurrency that employs smart contracts. It is open-source and decentralized, and it is built on the blockchain. After a hack occurred on the Ethereum network in 2016, the Ethereum community could not agree on whether or not to pay the people who were hacked. This led to the formation of Ethereum Classic. Ethereum Classic was preserved as the "immutable" original chain, while Ethereum continued as a hard fork under the direction of Vitalik Buterin. The blockchain was first divided into two.

Are you considering getting involved with Ethereum Classic (ETC), but you have no idea what it is or how to get started? No worries. This guide is intended to educate you about the project and get you ready to plunge into the trading experience that is the most user-friendly that is currently available on the market.

What is Ethereum Classic (ETC)?

Ethereum Classic was first designed as software by Vitalik Buterin and his colleagues to enable developers to build new cryptocurrency tokens and decentralized apps (dApps) that would operate on the new Ethereum blockchain network. These new cryptocurrency tokens and dApps would run on the Ethereum network. Ethereum Classic uses smart contracts that are stored in a distributed ledger to make it easier to host decentralized applications (dApps) and exchange value while also providing a blockchain network with decentralized governance.

On the other hand, in June of 2016, the Ethereum network saw a hard fork as a result of differences on immutability between the mining community and the developers. An active community of miners is responsible for the upkeep of Ethereum Classic at the moment. These miners have made the decision to follow a separate technological roadmap for the progression of the chain. Since the beginning, Ethereum Classic has never let its developers change the protocol and never split off.

How does Ethereum Classic (ETC) work?

To validate transactions in the same way as Bitcoin does, Ethereum Classic employs a consensus technique known as Proof of Work (PoW). Miners are responsible for maintaining network security. They do so by processing transactions and producing blocks, utilizing their time and the computing power available. When using the network, it is essential that transactions be completed in the sequence in which they were initiated. Miners make this possible by solving computationally challenging riddles in order to create blocks, which act as a mechanism to safeguard the network from malicious actors. This is done so that blocks may be added to the blockchain.

Users on the Ethereum Classic network are granted the ability to execute smart contracts, which is an essential function of the platform. These so-called "smart contracts" are agreements or if-then clauses encoded in lines of code and can carry out their terms automatically. There is no need for a third party to handle transactions between a buyer and a seller, such as a lawyer, since the procedure is self-contained and may be completed.

Ethereum Classic has committed to maintaining its use of mining based on the Proof of Work consensus algorithm and said that it would not include blockchain updates from the split Ethereum network. Additionally, a fixed monetary policy has been implemented by ETC.

Who Are The Founders of Ethereum Classic?

The Ethereum Foundation, a Swiss non-profit organization formed by Vitalik Buterin and the core Ethereum team, was the organization that, on July 30, 2015, was responsible for the first deployment of the Ethereum Classic mainnet through Frontier. The team's major focus was the realization of the concept of placing smart contracts that could be executed on the blockchain.

A well-known decentralized application (dApp) known as the DAO was hacked in June of 2016, and as a result, users lost fifty million dollars. The attacker took advantage of a programming flaw that allowed them to get more DAO tokens in addition to the user's real contribution. As a result, the attacker was able to steal more than a third of the DAO's core money. This led to a heated discussion about how the developers should respond and whether or not the chain should be split.

On July 15, 2016, a vote with little notice was conducted on-chain to determine whether or not to proceed with the DAO hard fork proposal. There are now 82,054,716 ETH in circulation, and 5.5% of the supply cast their vote. 3,964,516 ETH, or 87%, voted in favor of the DAO Fork, with a quarter of those votes coming from a single address. However, 577,88 ETH, or 13%, voted against it. The vote was conducted so quickly that it drew some criticism, but as of block number 1,920,000, the Ethereum network has officially severed its connection to Ethereum Classic.

The "Difficulty bomb" is a method that was supposed to drive the Ethereum chain away from the Proof of Work consensus mechanism and toward the Proof of Stake consensus mechanism in the future by making mining more difficult at an exponential rate. Ice Age is the name of the update that was applied to the network at block 200,000, and it included the upgrade. Following the completion of the hard split, Ethereum Classic updated its network on block 5,900,000 in order to permanently defuse the difficulty bomb. This was done to ensure that the PoW consensus process will keep working for a long time.

What Makes Ethereum Classic (ETC) Unique?

Ethereum Classic was one of the most historically popular hard forks of any blockchain and continues to this day to be one of the most popular hard forks. Due to the fact that Ethereum and Ethereum Classic share the same basic code, many of the features that can be found on Ethereum can also be available on Ethereum Classic. Ethereum Classic has a different philosophy than Ethereum. For example, it has decided to keep immutability and allows users to participate in a Proof of Work system.

What Gives Ethereum Classic (ETC) Value?

Maintaining and running the Ethereum Classic network is the responsibility of the Ethereum Classic token. Participants on the Ethereum Classic network can earn value by taking part in a variety of activities on the network. Users who hold ETC are able to make use of smart contracts, conduct transactions on the network, interact with decentralized applications (dApps), and vote in governance elections.

Additionally, a fixed monetary policy has been implemented by ETC. There is a limit of 230 million ETC placed on the total amount of ETC that can be generated.

How Many Ethereum Classic (ETC) Coins Are in Circulation?

The total supply of Ethereum Classic (ETC) tokens is capped at 230,000,000, with 137,486,673 currently in circulation and a total maximum supply of 230,000,000. There will never be an increase in this supply. Miners who keep the network secure, manage it, and maintain it can earn ETC tokens for their efforts. Since Ethereum Classic is the first blockchain ever created for Ethereum, the distribution for the initial coin offering was the same for both networks. Due to the fact that it was a hard fork event that caused the chains to split, there was neither a sale nor an airdrop for Ethereum Classic (ETC).

How Is Ethereum Classic (ETC) Secured?

Proof of Work (PoW) is the consensus technique that Ethereum Classic uses. The ETC will never switch to a different consensus process in order to keep the network safe. Miners of Ethereum Classic are in charge of the safety of the network because they solve difficult computational problems to make and verify blocks of transaction data.

The current status of all the information on the blockchain is recorded, and the network continues on to the next block as long as every miner or node on the network reaches an agreement over the order in which the blocks are created (also known as consensus). This consensus process protects the network against attacks by making it necessary for hostile actors to control a significant proportion of the network (51% or more).

The purpose of proof-of-work is to encourage miners to continue working on the Ethereum Classic chain so that it may be extended, and miners are rewarded for their efforts there. Since consumers will always pick the chain that is the longest or is considered the "official" chain, miners do not have much of an incentive to start their own chain.

Other Technical Data

• Node — A machine that joins the Ethereum Classic network.

• Proof of Work (PoW) — Miners compete to solve a difficult-to-generate but easily verifiable piece of data.

• ICO — Initial Coin Offering. A procedure or occasion during which a corporation makes an effort to bolster its financial resources by marketing and selling a brand-new cryptocurrency.

How To Use Ethereum Classic (ETC)

Even though ETC has the same features as Ethereum, users who want to host a node or make a transaction on the Ethereum Classic network currently need the right software for Ethereum Classic.

The most important use for ETC is the transfer of value on the L1 network of Ethereum Classic.

The capacity of Ethereum Classic (ETC) coins, which are native to the platform, to participate in smart contract operations is another selling point for Ethereum Classic. In addition to these uses, it is also a way to buy and sell things and a tool for making risky investments.

How To Choose an Ethereum Classic (ETC) Wallet

The type of Ethereum Classic (ETC) wallet you select will most likely be determined by the purposes for which you intend to use it and the amount of cryptocurrency that you need to keep.

Hardware wallets, also known as cold wallets, provide the highest level of security since they store cryptocurrency offline and provide backups. Hardware wallets like Ledger and Trezor both provide options for storing cryptocurrency. On the other hand, hardware wallets have a more steep learning curve and come with a higher price tag than their software counterparts. Because of this, they could be more suited to holding bigger quantities of ETC for customers who have more familiarity with cryptocurrency.

Software wallets provide another choice, are completely free, and are simple to use. The applications may be either custodial or non-custodial, and they are downloadable for use on smartphones as well as desktop computers. When you use a custodial wallet, the service provider will take care of the management and backup of the private keys on your behalf. To store the private keys, non-custodial wallets take advantage of the security components already present on the user's device. Even though they may be more convenient, they are thought to be less secure than hardware wallets. They may be better for people with less Ethereum Classic (ETC) or less experience.

Using an internet browser, users can access their online wallets, also known as web wallets, making them free and simple to use. They are known as "hot wallets" and, compared to hardware or software alternatives, may provide a lower level of security. Because you will probably place your faith in the platform to handle the management of your ETC, you should choose a service that has a solid reputation and a proven track record in the areas of security and custody. Consequently, they are best used for the storage of lower quantities or for use by more seasoned or regular dealers.

You may store and trade your Ethereum Classic (ETC) tokens easily and safely with the help of Kriptomat. This provides a safe storage option for your cryptocurrency assets. When you store your ETC with Kriptomat, you have access to security suitable for a business and functionality that is simple to use.

When you pick our safe platform as the answer to your cryptocurrency storage needs, the process of selling and buying ETC as well as exchanging it for any other cryptocurrency may be completed in a matter of seconds.

Ethereum Classic (ETC) Mining

Staking is not yet supported on Ethereum Classic. Instead, it makes use of a consensus process called Proof of Work, which is quite similar to Bitcoin's.

A significant modification to the Ethash mining algorithm was implemented in 2020 after the Ethereum Classic network was subjected to a number of 51% assaults in the previous year. The length of the Ethash epoch was increased from 30,000 to 60,000, which enabled the resolution of a significant security problem. EtcHash is the name given to this newly modified (and improved) version of Ethash, also known as the Thanos update.

Keeping it Classic

The history of Ethereum Classic, a historical currency, has been marked by controversy. Even though it is still in use today and has a daily trading volume of over one billion dollars, it is still considered a speculative alternative for investors since it is eclipsed by the more widespread Ethereum (ETH) split. In spite of this, Ethereum Classic has shown itself to be a viable cryptocurrency in its own right by overcoming a significant number of challenges that it has faced. When we take into account that Ethereum Classic is one of the oldest blockchains that can use smart contracts and that the community is committed to immutability, it is easy to see why blockchain fans are drawn to this platform.

Ethereum Classic (ETC) FAQ

Is Ethereum Classic a competitor to Ethereum?

Yes. The Ethereum Classic (ETC) network is intended to directly compete with the Ethereum network by taking an alternative route of development while retaining the same source code. This is done in order to achieve this goal.

When will staking be released?

Ethereum Classic has rejected Proof-of-Stake (PoS), and the network will never accept it.

How to Buy Ethereum Classic (ETC)?

Getting your hands on some Ethereum Classic is as simple as going to Kriptomat's how to purchase Ethereum Classic page and selecting the payment option that works best for you.

How to Sell Ethereum Classic?

If you already have ETC and keep it in a wallet on a Kriptomat exchange, selling your ETC coins is as simple as browsing the UI and selecting the payment method you choose to use.

Ethereum Classic Price

The price of Ethereum Classic and its market value are both influenced by a number of different variables. These factors include exchange inflows and outflows; emotion; technical and fundamental changes; the news cycle; and the broader economic climate.

The price of Ethereum Classic (ETC), much like that of Bitcoin, is determined at any given instant by the aggregate buying and selling activity of millions of people all over the globe. You can keep up with the latest price changes and news about cryptocurrencies by using a cryptocurrency exchange like Kriptomat or one of the many other cryptocurrency monitoring services.

At this time, one euro may be obtained for every load of Ethereum Classic (ETC).

The total amount of money traded in ETC in a single day is 246,246,494 euros. ETC has a total market capitalization of 2,999,833,488 euros, ranking it 26th among all cryptocurrencies in terms of total market capitalization. It has a total quantity of 137,486,673 ETC that is in circulation.

That's all for today, see ya tomorrow! If you want more, be sure to follow our Twitter (@croxroadnews)

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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