Ethereum Classic: Complete coin guide
Quick inner navigation:
One of the biggest inventions of the last decade is cryptocurrencies. The first crypto, Bitcoin, was developed in 2009 shortly after the global economic meltdown with the aim of giving the people more control over their finances. Even though it has taken some time, cryptocurrencies are finally living up to their potential.
Cryptocurrencies and other digital assets are finding their way into all aspects of the global economy and have been making positive impacts. One of such digital currencies is Ethereum Classic. In this post, we will look at Ethereum Classic, how it came about and its different applications.
What is Ethereum Classic?
The first thing we need to know is that Ethereum Classic (ETC) is not a new digital currency. Instead, it was extracted (forked) from the existing crypto, Ethereum. The blockchains of Ethereum and Ethereum Classic are identical in virtually every way up to block 1,920,000. It is at this block that the hardfork to refund the DAO token holders was implemented. This implies that all the transactions, crypto balance, and wallets that occurred on the Ethereum network prior to the hardfork are still valid on the Ethereum Classic network. After the hardfork, the two cryptos were split in two, and each one now acts independently.
Ethereum classic has similar features to its parent Ethereum, and they include development and deployment of smart contracts and decentralized applications. Their specifications such as average block time, size and reward are all the same.
Ethereum Classic Fork- why it happened?
The hardfork of the Ethereum network occurred after a hack on the original Ethereum back in June 2016. The hack led to the loss of $50 million worth of ether. Since the Ethereum network is an open source system, the hacker was able to exploit the vulnerabilities in code and subsequently stole the funds.
The issue of hardfork was a controversial subject that literally split the Ethereum community at the moment. Both sides presented valid arguments regarding whether to conduct a hardfork or not.
- Those who didn’t support the Ethereum classic fork pointed out the fact that the DAO (Decentralized Autonomous Organization) terms and conditions should hold under any circumstances. They also believed that activities that occur on the blockchain are immutable and should therefore not be altered with regardless of the outcome.
- Those who supported the hardfork argued that the code law is a very drastic statement at that time and that humans should ultimately decide on the final decision. They also believed that it would be an issue if they leave a big piece of the ether supply in the hands of a malicious actor as it would likely harm the value of the ether in the future. While the non-supporter view it as a bailout, the supporters of the hardfork thought otherwise.
- The Ethereum Classic was therefore created to make it possible for smart contracts to operate exactly the way they are programmed to, without any interference from a third party. The Ethereum classic team has four developers with the lead organizer being Arvicco.
The Technology behind Ethereum Classic
The main technology behind Ethereum classic is the DAO. Its Turing-complete Sputnik Virtual Machine is responsible for executing the smart contracts on the Ethereum classic blockchain. The Ethereum classic’s network was not created to simply be a decentralized currency but make a decentralized world computer.
- The ETC nodes were developed to help run the virtual machine financially. Thus, there are fees that are paid in Ethereum classic so that the nodes can process transactions that have to do with the contracts.
- While developing Ethereum classic, the Emerald Software Developer Kit was also produced. This toolkit is special to the network and is used in building apps. The SDK has other components for developers including UI, libraries, and build tools. This tool makes it possible for as many developers to build on top of the ethereum classic blockchain.
- Ethereum classic also has the Geth. It is a programming language that provides a multipurpose command line tool that runs a full Ethereum Classic node. The program enables miners to mine ETC, transfer funds, develop smart contracts and manage different accounts.
Ethereum Classic VS Ethereum
After the Ethereum hardfork, it became very hard for developer and crypto enthusiasts to distinguish between Ethereum and Ethereum Classic.
- The biggest difference between the two is how they handle the smart contracts. A smart contract is a function that was integrated into the blockchain of Ethereum, and it is supposed to execute commands. The new version (in this case Ethereum) and Ethereum Classic allows you to create a smart contract. The different between the two is that Ethereum Classic doesn’t allow you to change contracts after they have been created. For Ethereum, its new DAO reprogrammed and made it possible for developers to rewrite and change some things from their contract.
- This means that Ethereum classic is the original ethereum while Ethereum ETH is the new version of the network. The developers of Ethereum ensured that it is harder to mine it than Ethereum Classic.
- Ethereum is maintained by the Ethereum foundation, unlike Ethereum classic’s network which is an open-source system. Anyone can become a contributor to the development of Ethereum Classic. The Ethereum foundation led by the currency’s creator, Vitalik Buterin view Ethereum’s smart contract offering more to developers. Ethereum classic is thus more of a niche product.
- In terms of price, Ethereum classic trades around $22 per coin while a coin of Ethereum costs around $800 (as per the time of writing). Ethereum’s ETH is traded on virtually all exchange platforms while ETC, on the other hand, is traded on only a few exchanges.
- Ethereum classic and the Ethereum Virtual Machine operating system has suffered a number of security breaches.
The Decentralized Autonomous Organization (known as The DAO) was created with the aim of becoming the venture capital for the decentralized and crypto space. The DAO was announced back in May 2016, and it was built as a smart contract on the Ethereum blockchain.
The DAO can best be described as a complex smart contract that has many features. It made it possible for crypto companies to make proposals for their funding ICOs. The plan was for investors to receive the DAO tokens then vote for the particular project to fund.
DAO ensured that anyone with an internet connection could buy or hold a DAO token and the creators of the DAO could set any rules they voted on. DAOs rely on smart contracts that describe what will happen in the system.
The DAO is the underlying technology behind Ethereum Classic. It is virtually impossible to change a DAO, or the smart contracts underpinning it the moment it has been added to the Ethereum blockchain. This was a big issue since the developer can’t change a code even when he/she sports a bug on that smart contract. This issue was what the attacker that stole $50 million exploited and the developers could only watch as the hacker drain the funds while they could do nothing to stop it.
This vulnerability was the reason why the hardfork was implemented. The hardfork was made to carry out only one function; return all the ethers taken from the DAO back to a smart refund contract. The new smart contract would only be able to withdraw.
The split led to a new version of the blockchain (Ethereum) and the old version (Ethereum Classic).
Ethereum Classic Growth
Despite being overshadowed by Ethereum, Ethereum Classic has made significant progress over the past few months.
- After the hardfork, Ethereum Classic was trading at roughly $13 per coin on most trading platforms. However, it has recorded astonishing growth over the past few months, attaining an all-time high of $47 per coin in December.
- The developers’ conference in Hong Kong in November last year saw the price of ETC rise to $34 per coin. That was close to 300% increase in price in just a few months. By December 21, 2017, Ethereum achieved an all-time high value of $47.77 per coin.
- The market slump that followed afterward affected the price of the currency even though it bounced back to the $40 region two weeks ago. It has since then slumped and now trades at roughly $22 per coin. Its market dominance currently stands at 1.34%, while it has a market cap of $2 billion.
How To Buy Ethereum Classic
You can buy Ethereum Classic from several exchange platforms. The first thing to do however is to get an Ethereum Classic wallet.
Ethereum Classic Wallet
Since ETC is an ERC20 token, it can be stored on any ERC20 compatible wallets. There are several Ethereum Classic wallets that you can use.
- The Ethereum Classic Wallet is the most popular one. It can be added as an extension of your chrome browser, and it is very safe for storing your ETC reserve.
- For mobile enthusiasts, you can decide to use the multi-currency wallet Coinomi which also supports ETC. the wallet works on android and IOS.
- The safest ETC wallet to use however is hardware wallets. TREZOR, LedgerWallet, and Keepkey are excellent options. They are more secure than desktop, mobile, and web wallets since they are cold storage wallets.
- The Mist Wallet is fully fledged for this though since it is a software that runs Ethereum and has been adjusted to work with Ethereum Classic. The Mist Wallet can be gotten on GitHub.
Ethereum Classic Exchanges
The next step is to buy either BTC or ETH from exchanges such as CEX.io or Coinbase. Before purchasing these coins though, you will need to register on these exchanges. After registering, proceed to deposit fiat currency using credit cards, debit cards, bank transfers or any means allowed by the platform.
After depositing the fiat currency, you should proceed to purchase ETH or BTC.
The next step is to transfer the BTC or ETH to the exchanges listed below and trade them for ETC.
Bitfinex >> This is a very big exchange platform that offers a wide range of cryptos including ETC. verification is not needed before you start trading. Maker fees ranging from 0.02-0.1% exists while taker fees range from 0.12-0.2%.
After sending BTC or ETH from Coinbase or CEX.io, go to the market section and search for ETC. trade the BTC or ETH in your account for ETC.
Binance >> This platform is now amongst the top in the world and offers a wide array of altcoins. Luckily, ETC is one of them. Binance is widely used due to its ease of use and friendly interface. Verification is needed on this platform. You can verify your account via Google Authenticator or SMS authentication. Trading fees on Binance are 1%.
After sending your funds to Binance, you can search for ETC, and the traded pairs will appear. Trade your BTC or ETH for ETC coins.
OKEx >> Just like the two listed above, OKEx is one of the most popular trading platforms at the moment. It currently supports several altcoins and ETC is one of them. Before withdrawal occurs, you will need to do a video verification. Their fees for crypto-crypto trading is 0.1%.
After sending your BTC or ETH to OKEx, search for the ETC pair and trade BTC or ETH with the ETC.
After purchasing your ETC from the above platform, you can transfer them to any of the wallets listed above in order to secure your funds.
Despite the earlier concerns that Ethereum Classic might not survive due to being overshadowed by Ethereum, the cryptocurrency has endured tough times and has since grown to become an important altcoin. The price progressed last year and hit an all-time high of $47. Analysts expect that the currency will reach the $60 before the end of the year.
In terms of functions though, Ethereum Classic is being used less. The security issues and the fact that developers cannot change codes in their smart contracts is driving developers to use Ethereum instead. The currency still has a long way to go before it can convince altcoin exchanges, mining operations, brokerages, and wallets to integrate it.
The crypto world is an exciting one, and you will benefit from it greatly. You can check our site for more crypto-related articles.