Ethereum Classic

Ethereum Classic allows developers to run their applications precisely as programmed on its distributed network without censorship, downtime, and third-party interference.

Overview

Ethereum Classic (ETC) is a hard fork (permanent split) from Ethereum, making it an offshoot of the original Ethereum chain. The fork was in response to a hacking incident that caused Ethereum to lose about 3.6 million tokens, which led to an upgrade that removed the incorrect transactions. But many of its community members believed that blockchain transaction records should be immutable, so they rejected the newly updated platform and created Ethereum Classic using the original ETH ledger that contains the transactions from the hack.

Like Etheruem, ETC's high decentralization makes it free from centralized governance. The platform is also immutable. As a result, members can’t alter transaction records. But unlike the ETH platform, Ethereum Classic is not subject to possible future changes. The blockchain network strictly adheres to Ethereum’s original rules, and it’s not compatible with any Ethereum updates.

Furthermore, Ethereum Classic has a native token that underpins its financial system. As a result, ETC lets users transact business securely on a decentralized platform. Also, the blockchain network uses the native token to incentivize community members to participate in its Proof-of-Work (PoW) consensus process to validate transactions and secure the network.

Additionally, Ethereum Classic supports smart contracts and non-fungal tokens by default. Developers can build and run distributed applications on the platform without permission. The blockchain also features a robust documentation and developer community that guides builders on ETC development.

Products details

Ethereum Classic uses its native token to power the blockchain network. The cryptocurrency allows anyone with a wallet to hold ETC, make peer-to-peer payments or swap the digital currency for another on a crypto exchange. Additionally, ETC is flexible, meaning users can hold a fraction of the internet money. Besides buying the internet money with fiat or swapping with others, people can earn the currency by mining (allocating computing resources to support the blockchain), exchanging goods or services for ETC, or developing Ethereum Classic applications.

Ethereum Classics as a permissionless decentralized network allows anyone to build on it without authentication. Unlike permissioned networks where only designated users can join, this distributed ledger technology (DLT) is a trustless and open blockchain that lets everyone participate in the consensus process to validate transactions, besides developing and running applications. Its board accessibility facilitates high transparency, resistance to censorship, and a super-fast transaction reconciliation process. The feature also ensures strong security since hackers can’t take down all the distributed nodes.

Etheruem Classic uses Proof-of-Work (PoW) consensus protocol to validate transactions and protect the network against corruption. The consensus protocol is a fault-tolerant mechanism that helps decentralized platforms validate transactions and achieve agreement, trust, and security.  Proof-of-Work uses miners to reach consensus. It requires participants (computer nodes) to solve arbitrary mathematical puzzles to prevent people from gaming the system. Successful mining activity will validate a transaction, adding a new block to the network, and the miners earn rewards for the hard work. Unfortunately, ETC mining usually requires high computing power and energy, making it less appealing to some people.

Ethereum Classic (ETC) supply is deflationary, making the number of tokens created decrease over time. The smart contract platform carried out some upgrades after splitting with Ethereum. For instance, it added a hard cap on the number of native tokens available to the public. As a result, the platform only allows a maximum  210.7 million token supply. The block reward falls by 20 percent per every new 5 million blocks, which is approximately two and half years. ETC deflationary monetary policy aims to make the cryptocurrency a better store of value than Ethereum since the tokens are more scarce.

Ethereum Classic natively supports smart contracts, allowing users to digitize and automate contract executions. Smart contracts turn agreements between parties into a pile of computer codes and self-execute them when they meet the contract terms. This legally-binding contract eliminates the need to involve third parties to execute or supervise agreements, ensuring trust and confidence. Furthermore, it can cut operational and administrative costs and speed up contract execution. Ethereum Classic’s smart contract capabilities can also minimize paper-based processes to facilitate a paperless workforce and government.

Ethereum Classic Wallets let users hold and transact ETC. The platform supports several wallet types, providing users options to suit their preferences and requirements. For example, web wallets allow people to access their ETC assets using a web page. They remove the need for downloads and make it straightforward for users to interact with ETC. Unlike web wallets, Hardware wallets provide a secured option for holding ETC for the long term. In addition to these, Ethereum Classic is also compatible with several software wallets, which enable users to interact with the platform seamlessly via installed mobile or desktop applications.

Ethereum Classic transaction confirmation time varies depending on the exchange. For instance, Kraken takes about 40,000 confirmations, which might be up to 6.5 days to complete transactions, while Coinbase requires 20,000 confirmations and could mean up to two weeks. The reason is crypto exchanges take many days to confirm transactions and record them on the blockchain’s immutable public ledger to prevent hacks and frauds. Also, ETC network congestion can affect the time it takes to process transactions. Additionally, transaction fees can vary due to network congestion and the exchange used.

Ethereum Classic enables a decentralized (DeFi) finance system and the development of non-fungal tokens (NFTs). A DeFi is a democratized financial system where everyone is equal. The finance system allows anyone to access its financial products and carry out transactions. Its decentralized governance feature provides alternatives to the tightly controlled traditional financial system, allowing people to participate in the ecosystem without intermediaries. Furthermore, ETC supports the development of non-fungal tokens (NFTs). They provide provable ownership of assets. NFTs come with unique metadata that makes them have one owner at a time. Ethereum Classic platform users can also tokenize their assets into NFTs to securely store or trade ownership.

Recap

Ethereum Classic runs on the original Ethereum ledger. It’s decentralized, immutable, and natively supports smart contract and dApp developments like most peer networks. The blockchain adopts a deflationary monetary policy to make its token more valuable. Additionally, Ethereum Classic uses the energy-inefficient Proof-of-Work consensus mechanism to validate transactions.