What is Ethereum Classic (ETC) How it Works & Where To Buy It?

Ethereum Classic (ETC) is the original Ethereum that refused to undergo the hard fork in 2016.

Ethereum’s new hard fork retained the Ethereum name, while the original Ethereum blockchain project was called “Ethereum Classic”.

There’s a lot of controversy surrounding the history of the Ethereum Classic network, and blockchain purists see ETC as a pilgrimage toward maintaining the true ethos of blockchain.

 

How Ethereum Classic (ETC) Works

To understand Ethereum Classic, it’s important to consider what caused the divide between Ethereum. In 2016, there was an exploit in Ethereum’s code that would lead to a $50M exploit.

After notable deliberation, the team and community decided that a hard fork was the best way to resolve the issue. However, blockchain purists disagreed with the motion and believed that the code should never be altered.

This caused the split between Ethereum – the original Ethereum became Ethereum Classic, and the hard forked version kept the Ethereum name.

During this period, Vitalik Buterin and other founders were slammed by purists in the community, calling the hard fork an advancement that was detrimental to the future of blockchain.

The community of Ethereum Classic decided to give ETC a hard cap, like Bitcoin and other projects – a hard cap of 210 million ETC tokens was agreed upon.

The project still retained its original blockchain infrastructure and like Ethereum, ETC utilizes the proof-of-work consensus algorithm.

Similarly, DApps can be built atop Ethereum Classic, like the Ethereum Blockchain. It’s important to recognize that Vitalik Buterin created Ethereum Classic but the Ethereum Classic community is significantly smaller than the Ethereum community.

Ethereum Classic operates in the same way but the network is smaller and there are fewer miners in comparison to Ethereum – making the network a lot more vulnerable to exploits.

 

What Is Ethereum Classic (ETC) Used For?

Ethereum Classic, like Ethereum, is used for making payments and the implementation of smart contracts that bolster the functionality of the network.

The Ethereum network consists of the largest number of DApps and the highest TVL (total value-locked) of all projects – ETC however has only a fraction of the same feats as Ethereum.

The Ethereum Classic network is much smaller and is a lot less developed compared to the Ethereum network. Ethereum on the other hand is seen as a much more credible and trusted project, as it’s only 2nd to Bitcoin.

ETC trading and payments are however still very active but the capacity of the Ethereum Classic Network is limited in scalability. It can only process around 15-25 transactions per second.

 

Where To Buy Ethereum Classic (ETH)

Ethereum Classic (ETC) has been around for several years and is a well-known cryptocurrency available on most exchanges. It is also the 30th largest cryptocurrency in the world by market capitalization.

ETC tokens are commonly available and frequently traded on most centralized crypto exchanges. Before you’re able to purchase ETC, you’ll need to deposit fiat money onto an exchange, and sequentially ETC tokens will be credited to your ETC digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store ETC tokens.

Five of the most popular crypto exchanges are:

1. Kraken
2. Coinbase
3. KuCoin
4. HTX
5. BitHumb

 

All of the above exchanges allow users to buy, sell, transfer and store ETC tokens in a digital wallet on the exchange. You can use your debit or credit card to purchase ETC tokens on centralized exchanges.

How long has Ethereum Classic (ETC) existed?

Ethereum classic was created in 2016 after the DAO (Decentralized Autonomous Organization) was hacked. The Ethereum Foundation was poised to answer the question – “How does Ethereum recover $50M of the $150M raised in the ICO?”

97% of the community, including founders, agreed that the best option was to hard fork Ethereum. Essentially, this created a new Ethereum (still named Ethereum) and the legacy Ethereum chain which was renamed Ethereum classic.

Ethereum Classic’s community went on to give ETC a hard cap of 210 million tokens. The project hasn’t experienced the same growth as Ethereum and is significantly less developed than Ethereum.

What’s controversial about Ethereum Classic (ETC)?

When researching various cryptocurrencies, especially hard forks, it’s important to consider the controversies surrounding them. ETC has been surrounded by controversy since its inception.

Let’s take a look at the top two controversies surrounding Ethereum Classic (ETC)

• Multiple Hacks – Ethereum Classic has been the victim of multiple hacks since 2016. Many of the hacks have been 51% attacks that have altered the network negatively. The hacks are also a clear indication of how weak the network security is compared to other blockchains.

  The community remains concerned about the security of the network and the future of the project. Many individuals in the community have called for the end of the project, stating that it simply isn’t able to compete with Ethereum or other successful blockchains.

• ETC is Dead Compared to Ethereum – Another major controversy is the extremely minimal growth Ethereum Classic has seen since 2016. When comparing Ethereum and Ethereum Classic is quite evident how one of the projects has surged beyond expectation and the other has seemingly fizzled out.

  Although ETC is frequently traded, it has not upheld the standard and growth of Ethereum. Many believe that the project won’t ever make a successful comeback to its previous strengths – other blockchain purists believe that once the Ethereum 2.0 upgrade happens, Miners will once again return to Ethereum Classic.

 

How many Ethereum Classic (ETC) tokens are there?

At the time of writing, ETC has a circulating supply of 134,262,626.62 ETC tokens (39% of the total supply).

The total supply of Ethereum Classic (ETC) is 210,700,000

The max supply of Ethereum Classic (ETC) is 210,700,000.

Can ETC be mined?

Ethereum Classic (ETC) is a mineable cryptocurrency. ETC like Ethereum can be mined as it currently uses a proof-of-work consensus algorithm.

However, many individuals consider ETC to be unprofitable to mine and much rather prefer other cryptocurrencies.

Individuals with suitable mining rigs can mine ETC but will need to consider the cost of computing power required to mine Ethereum Classic (ETC).

What is the market cap of Ethereum Classic (ETC)?

The market cap of Ethereum Classic (ETC) is:

Ethereum Classic (ETC) market cap = total amount of coins in circulation x current market price of ETC

Ethereum Classic (ETC) Market Cap = 134,262,626.62 ETC x $37,75 = $5,06 billion (30th largest market cap)

Ethereum Classic has a much lower market cap than Ethereum and hasn’t experienced significant growth like Ethereum over the years. However, the market cap of Ethereum Classic is still much larger than many other cryptocurrencies.

It is currently one of the top 50 cryptocurrencies by market capitalization and continues to grow in popularity as the project attracts more investment and users.

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Ethereum Classic (ETC)

When considering Ethereum Classic and what projects might be competing with the project, there are a few factors that need to be kept in mind.

The hard fork of Ethereum led to the divide and Ethereum Classic was essentially supposed to halt use. However, that wasn’t the case and the project continued to grow over the ears but not at the same pace or volume as Ethereum (ETH).

Ethereum Classic still utilizes proof-of-work much like Ethereum mainnet but that doesn’t mean that the Ethereum Classic work efficiency and popularity are similar in any way.

Ethereum is incomparably larger than ETC and therefore can’t even be seen as a competitor.

Projects such as Bitcoin Cash, Cosmos, and Tron are similar in market cap size and user adoption. These projects can be seen as competitors to Ethereum Classic, they’re also projects that have been around for a similar amount of time.

What are the future plans for Ethereum Classic and ETC Token

The future of Ethereum Classic is dependent on whether the network is rejuvenated. It requires more development and more mining to help make the network grow to its full potential.

At the current moment, the project hasn’t released any future plans besides its community planning to improve the amount of investment and frequency of trading in Ethereum Classic.

One advantage of Ethereum Classic is that the smart contract platform makes it accessible for willing developers to deploy DApps – this would drive value to the network and likely encourage growth going forward.

The Classic price has also slumped over the past year, from $120 to below $40 currently.

Pros and Cons of Ethereum Classic and ETC Token

Pros:

• Smart Contacts – ETC supports smart contracts which makes it possible for DApp developers to deploy on the network.
• Cheaper Than ETH – Ethereum is notorious for high ‘gas’ fees. ETC, however, doesn’t experience the same network congestion. This means that gas fees for transactions are significantly lower than on the Ethereum network.
• Potential Option For Miners After ETH 2.0 Upgrade – Ethereum Classic is the legacy chain of Ethereum, which makes it the most convenient option for miners to choose after the ETH 2.0 which will shift Ethereum from proof-0f-work to proof-of-stake.

 

Cons:

• ETC Has Been Hacked Multiple Times – Ethereum Classic has suffered numerous 51% hacks that have left the community and potential investors with significant concerns.
• Many Consider It Dead – Many consider Ethereum Classic a dead project with no real future or development.

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