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In the world of cryptocurrencies, Ethereum Classic (ETC), stands as a prominent and a little enigmatic figure. It was born out of its own network and niche. This article discusses the intricacies of Ethereum Classic, exploring what makes it different from its counterpart and the various use cases it has served since today.
Birth of Ethereum Classic
Ethereum Classic is a blockchain technology based cryptocurrency that emerged as a result of hard fork in the Ethereum blockchain, in July 2016. This hard fork was prompted by infamous DAO (Decentralized Autonomous Organization) hack, in which the attackers tried to exploit vulnerabilities in DAO’s smart contract code to siphon off a huge amount of Ether (ETH). Ethereum’s native coin. Then Ethereum community became deeply divided on how to respond to this crisis, leading to a creation of two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC).
Ethereum Classic retained its original blockchain, which was characterized by its commitment to immutability and resistance to external intervention. In contrast, Ethereum (ETH), chose to implement a hard fork to reverse the DAO hack, effectively erasing the fraudulent transactions that took place and further returning the stolen funds to its rightful owners. Such fundamental principle, in approach is between the two chains defining the core philosophy of Ethereum Classic.
What Sets Ethereum Classic Apart?
Immutability and Code is Law Principle
Most significant differentiator for Ethereum Classic is its unwavering commitment towards immutability. In world of ETC, “Code is Law”, meaning that once a transaction is recorded on the blockchain, it cannot be altered or reversed, regardless of its circumstances. This principle upholds and sanctity of blockchain as an immutable ledger, preserving its integrity and trustworthiness.
Decentralization
Ethereum Classic prides itself on its decentralized nature. It aims to minimize influence of a few powerful entities and promote democratic, community driven blockchain. This commitment of decentralization is reflected in maintenance of a relatively low mining difficulty and making it more accessible for individual miners to participate and secure the network.
Limited Supply
Similar to Ethereum (ETH), Ethereum Classic has a capped supply of tokens. This scarcity is designed to maintain the value of ETC over time, as a limited supply can potentially drive demand and increase the crypto price. The total supply of ETC is capped at approximately 210 million tokens.
Security
Ethereum Classic benefits from security of its parent chain, Ethereum, including a robust and battle tested smart contract platform. Developers can build decentralized applications (DApps), on the ETC blockchain, taking advantage of Ethereum’s Solidity programming language along with established developer tools.
What is Ethereum Classic Used for?
Ethereum classic serves several purpose and has found applications across various domains:
Decentralized Applications (DApps)
Ethereum Classic provides a platform, for developers to create DApps that run on a secure and immutable blockchain. Such DApps can be used for a wide range of purposes, from finance and gaming to supply chain management systems, and identify verification.
Smart Contracts Usage
Similar to parent chain, Ethereum Classic supports smart contracts. These self executing contracts, with predefined rules enable a wide array of automated transactions and processes, eliminating a need for intermediaries and reducing the risk of fraud.
Digital Asset Transfer
ETC serves as a medium of exchange for transferring digital assets securely and transparently. It can also be used for peer-to-peer transactions, remittances, and cross border payments.
Store of Value
With capped and limited supply and a commitment to immutability, Ethereum Classic is often seen as a store value, similar to Bitcoin. Some investors view it as a digital asset to hedge against inflation and economic stability.
FAQ’s
Is Ethereum Classic more Secure than Ethereum (ETH)?
Ethereum Classic and Ethereum (ETH), both prioritize security but have different approaches. Ethereum Classic’s commitment to immutability makes it an arguably more secure against external interventions. However, this immutability can be a double edged sword, as it means that once a transaction is on ETC blockchain, it cannot be reversed. Even in case of hacks or errors, Ethereum (ETH) on the other hand, values flexibility and can implement changes through hard forks, which can enhance security, but may also introduce complexities and further debates.
What Happened to Stolen Funds from DAO hack on Ethereum Classic?
Stolen funds from DAO hack on Ethereum Classic remains in the possession of the hackers. Contrary to Ethereum (ETH), Ethereum Classic did not implement a hard fork, to reverse the hack or recover the funds. Instead, ETC maintained its commitment to immutability, which means that stolen Ether (ETH) remains on the blockchain, unrecoverable.
Can I Use Ethereum Classic for DeFi (Decentralized Finance) applications?
Yes, Ethereum Classic supports for DeFi applications just like Ethereum (ETH). You can participate in various DeFi activities, on the ETC blockchain network, such as lending, borrowing, trading, and yield farming. While Ethereum ecosystems, may have a larger DeFi ecosystem, Ethereum Classic offers a similar environment with its own set of projects and opportunities.
How Can You Acquire Ethereum Classic (ETC)?
You can acquire Ethereum Classic (ETC) through cryptocurrency exchanges that have listed ETC pairs. First you will need to create an account on a reputable exchange, complete that required verification steps, and then deposited funds into your exchange wallet. Once you have funds in your wallet, you can replace orders to buy ETC using cryptocurrencies like Bitcoin (BTC) or Ethereum (ETC), or even using traditional fiat currencies, depending on exchange’s supported trading pairs.
Conclusion
In summary of Ethereum Classic (ETC) has reversed and carved its own path in the world of cryptocurrencies by adhering to principles of immutability, decentralization and limited supply. It offers a secure and transparent blockchain platform for various applications, from DApps to smart contracts. As it may not have the same level of mainstream adoption as its sibling Ethereum Chain (ETH), Ethereum Classic continues to attract developers, investors, and enthusiasts, who value its unique attributes and principles.
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