Ethereum Classic is a blockchain and cryptocurrency that was created by splitting Ethereum into two separate projects. In 2016, Ethereum experienced a hacking attack, which prompted the creators to decide to make a hard fork, a change in the protocol code to restore the funds stolen by the attack. However, not everyone agreed with the decision, believing that the original version of Ethereum and its principles – specifically, “code is law” – should be preserved. Those who supported preserving the original Ethereum created Ethereum Classic.
How does Ethereum Classic work and what is it?
Ethereum Classic is a version of Ethereum before the hard fork that has not been modified. It works on similar principles to Ethereum, allowing you to create smart contracts and build applications based on the blockchain.
The cryptocurrency associated with Ethereum Classic is ETC, whose value fluctuates with supply and demand in the market. Although Ethereum and Ethereum Classic are two separate projects, there are still a lot of similarities between them. Both projects aim to create an open and decentralized platform that allows developers and users to use the blockchain easily and flexibly.
Who created Ethereum Classic?
Ethereum Classic was created by a group of developers who disagreed with changes to the Ethereum protocol made after the DAO incident in 2016. To make a long story short, after the incident, which resulted in the loss of many millions of dollars in Ether, the Ethereum Foundation decided on a so-called “hard fork,” which meant splitting the Ethereum network into two separate networks – Ethereum (ETH) and Ethereum Classic (ETC).
The group of developers that created Ethereum Classic argued that the hard fork was unjustified and violated the principle of protocol immutability. Therefore, they decided to continue developing the original Ethereum protocol and create a separate cryptocurrency – Ethereum Classic.
There is no single creator of Ethereum Classic, but it is the work of many people involved in cryptocurrencies and blockchain, who decided to continue the development of the original Ethereum protocol.
What is an ETC cryptocurrency?
Ethereum Classic is a cryptocurrency based on the Ethereum Classic blockchain. It is a digital coin that serves as a medium for exchanging value on the Ethereum Classic network. Like other cryptocurrencies, ETC allows the transfer of value between users, without the need to go through financial institutions.
The ETC coin can be used to make transactions on the Ethereum Classic network and to pay transaction fees. In addition, ETC can be held as an investment, as its value can fluctuate depending on supply and demand in the cryptocurrency market.
Advantages of ETC
The following are the advantages of Ethereum Classic:
- Protocol immutability: Ethereum Classic, unlike Ethereum, did not go through the so-called “hard fork” after the DAO incident in 2016. According to Ethereum Classic supporters, it is the lack of protocol change that is one of the cryptocurrency’s biggest advantages. Protocol volatility in the case of Ethereum, could affect some applications that are written for the original version.
- Decentralization: Ethereum Classic is a blockchain network that strives to maintain full decentralization, meaning there are no central nodes or institutions that control the network. This gives Ethereum Classic users more autonomy and control over their transactions.
- Security: Ethereum Classic uses the same Proof-of-Work (POW) consensus algorithm as Ethereum, which means the network is well protected against attacks. In addition, Ethereum Classic uses the same smart contract technology as Ethereum, this gives developers the ability to create applications based on the blockchain.
- Low transaction fee: the transaction fee on the Ethereum Classic network tends to be lower than that of Ethereum – which is especially important for those making multiple transactions.
- Development: Ethereum Classic is developing as an alternative platform for blockchain developers, and over time, it may attract more attention from application developers looking for alternatives to Ethereum.
