Ethereum Classic

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Discover Ethereum Classic's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Ethereum Classic?

Ethereum Classic (ETC) is an open-source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts. It was created in 2016 after a hacking incident on the original Ethereum blockchain, with a split in the community over whether to reverse the hack. ETC continues to operate on the original blockchain, adhering to the principle of "Code is Law," while Ethereum was forked to reverse the hack. ETC aims to become a global payment network using smart contracts without centralized governance, similar to other cryptocurrencies.

How is Ethereum Classic used?

Ethereum Classic (ETC) is used in various ways, primarily as a decentralized platform for executing smart contracts and decentralized applications (dApps). Here are some key use cases:

  1. Smart Contracts and dApps: ETC is used to facilitate the execution of smart contracts, which are self-executing agreements written in code. These contracts automate specific actions when certain conditions are met, ensuring trustless and secure transactions. dApps built on the Ethereum Classic platform provide various services, such as decentralized exchanges, wallets, and other applications.

  2. Payment and Store of Value: ETC can be used as a store of value, similar to Bitcoin, allowing users to save and exchange it while maintaining its purchasing power over time. It can also be used for payments, with large corporations like Amazon and Microsoft considering it for settling transactions without financial intermediaries.

  3. Censorship Resistance: ETC transactions are verified by a network of nodes that follow the original Ethereum rules, making it censorship-resistant. This feature allows for the use of ETC in decentralized applications that require freedom from central authority control.

  1. Utility Token: The ETC token is used as a utility token for decentralized applications built on the Ethereum Classic platform, enabling users to access and participate in various services and functions.

  2. Investment: ETC can be used as an investment, with its value potentially appreciating over time. However, its market performance is subject to fluctuations and uncertainties.

Overall, Ethereum Classic offers a robust platform for decentralized applications and transactions, with its native token ETC serving multiple purposes within the ecosystem.

How do I store Ethereum Classic?

To store Ethereum Classic (ETC) tokens, you need to set up an Ethereum Classic wallet. Here are the steps to follow:

  1. Choose an Official Ethereum Classic Wallet:

    • Visit the websites of official Ethereum Classic wallets such as Jaxx, Classic Ether Wallet, Ledger Nano S, Ethereum Parity, and Mist. Choose a wallet that meets your requirements, considering whether you want a hardware or software solution.
  2. Download and Save Your Private Key:

    • The wallet you choose will provide you with an encrypted private key. Download and save this key in a secure location, such as your hard drive, documents folder, or an external USB. Make sure to have a backup, as a lost private key cannot be retrieved.
  3. Use Your Private Key to Unlock Your Wallet:

  • Paste your private key into the space provided on your Ethereum Classic wallet and click unlock. This will grant you access to your wallet, where you can store, send, and receive ETC tokens.
  1. Buy Ethereum Classic Tokens:

    • To use your wallet for products and services, you need to buy some Classic Ether. You can do this through exchanges, brokers, or OTC markets. Ensure you understand the different order types and trading options available.
  2. Manage Your Wallet:

    • Familiarize yourself with the wallet interface, which allows you to check your balance, store funds, and interact with the blockchain. Be aware of the different fee management options available, such as manual control, suggested fees, or predetermined fees.

By following these steps, you can securely store and manage your Ethereum Classic tokens.

How to buy Ethereum Classic?

To buy Ethereum Classic (ETC) tokens, follow these steps:

  1. Choose a Platform: Select a reputable cryptocurrency exchange such as MEXC, Binance, Coinbase, KuCoin, or Kraken.

  2. Create an Account: Sign up for an account on the chosen platform. This typically involves providing identification and verifying your email address and phone number.

  3. Verify Your Identity: Complete the Know-Your-Customer (KYC) process by submitting the required identification documents to ensure compliance with regulatory requirements.

  1. Add a Payment Method: Connect a payment method such as a bank account, debit card, or credit card to fund your account. Some platforms also support third-party payment services like Simplex, Banxa, and Mercuryo.

  2. Navigate to the ETC Page: Find the Ethereum Classic (ETC) page on the platform and select it as the asset you want to purchase.

  3. Choose Your Purchase Method: Decide how you want to buy ETC. You can use fiat currency, stablecoins like USDT, or other cryptocurrencies. Some platforms offer peer-to-peer trading and futures trading options as well.

  1. Set the Amount: Enter the amount of ETC you want to buy, and the platform will automatically convert it to your local currency.

  2. Confirm the Purchase: Review the details of your purchase, including the price and fees, and confirm the transaction.

  3. Store Your ETC: Once the purchase is complete, you can store your ETC tokens in your account wallet or transfer them to a non-custodial wallet for added security.

Remember to always follow the specific instructions and guidelines provided by your chosen platform, as the exact steps may vary slightly.

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History of Ethereum Classic

Ethereum Classic (ETC) has a rich and complex history that began with the Ethereum project. The Ethereum project's mainnet was initially released via Frontier on July 30, 2015, by the Ethereum Foundation, a Swiss non-profit founded by Vitalik Buterin and the core Ethereum team.

The DAO Hack and the Hard Fork

In June 2016, a significant event known as the DAO (Decentralized Autonomous Organization) hack occurred. The DAO, built on the Ethereum platform, was exploited, resulting in a substantial loss of funds. This event led to a contentious debate within the Ethereum community about how to address the hack. Some members advocated for a hard fork of the blockchain to refund the misappropriated funds, while others believed in preserving the original blockchain without modifications.

The Birth of Ethereum Classic

The disagreement ultimately led to a hard fork of the Ethereum blockchain. The new forked chain became the current Ethereum (ETH), while the original blockchain continued as Ethereum Classic (ETC). This split marked the divergence of two separate blockchains, each with its own community and ecosystem.

Post-Fork Development

Since the hard fork, Ethereum Classic has evolved as a distinct blockchain, maintaining its commitment to immutability and decentralization. It has continued to develop its own ecosystem, with a focus on preserving the original Ethereum blockchain's history and ethos. Ethereum Classic has also adopted a fixed monetary policy, capping the total amount of ETC that can be created at 230 million.

Key Events and Milestones
  • 2016: Ethereum Classic emerged as a separate blockchain following the DAO hack and the subsequent hard fork.
  • 2017: The current ETC monetary policy was implemented, aiming to be mechanical, algorithmic, and capped, similar to Bitcoin.
  • 2018: The ETC Summit was held in Seoul, South Korea.
  • 2019: The third annual ETC Summit took place in Vancouver, Canada.
  • 2022: Ethereum Classic's block rewards were reduced by 20% to 2.56 ETC per block, following the bitcoin-inspired 5M20 emission schedule.
  • 2022: Vitalik Buterin, Ethereum's most prominent co-founder, endorsed Ethereum Classic for those who value Proof-of-Work chains.
  • 2022: Antpool invested $10 million in the Ethereum Classic ecosystem.
  • 2022: Ethereum Classic's hashrate surged by 83% as the Ethereum merge approached.
  • 2022: The Ethereum Foundation upgraded Ethereum to proof-of-stake consensus, cementing Ethereum Classic as the largest Proof of Work EVM network.

Ethereum Classic continues to operate as a decentralized, immutable, and open-source platform, supporting the development of decentralized applications and smart contracts.

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How Ethereum Classic works

Ethereum Classic (ETC) operates on a decentralized network of nodes that synchronize and validate the blockchain. These nodes ensure the authenticity of transactions and maintain the integrity of the blockchain. The network uses a Proof of Work (PoW) consensus mechanism, where miners solve complex computational problems to create new blocks and prove their work. Once added, transactions cannot be modified or removed, ensuring the immutability of the blockchain.

Smart Contracts and Decentralized Applications

On ETC, developers can write smart contracts that automatically execute when certain conditions are met. This enables the creation of decentralized applications such as Decentralized Autonomous Organizations (DAOs) and stablecoins. Smart contracts are self-executing programs that operate on the blockchain when predefined conditions are met, facilitating actions like the sale of an item at a predetermined price, automating payment and transfer of ownership.

Open-Source Platform

Ethereum Classic is an open-source platform, allowing anyone to view, enhance, and customize the code and technology behind the platform. This extends the platform's reach and enables innovative work on the future of blockchain technology. The open-source nature of ETC allows for community collaboration and development, ensuring that the platform remains decentralized and secure.

ETC Token and Gas

The ETC token is used as "gas" on the network to pay for transactions on the blockchain. It has a limited maximum supply of 210.7 million ETC. The token is created as a reward to network nodes for validating computations performed on Ethereum Classic's EVM. The ETC token is traded on digital currency exchanges under the currency code ETC and is used to pay for transaction fees and computational services on the Ethereum Classic network.

Ethereum Classic Ecosystem

The Ethereum Classic ecosystem consists of developers, users, businesses, and services organized around the Ethereum Classic blockchain platform. The ecosystem aims to create a decentralized infrastructure for the development and execution of smart contracts and decentralized applications (DApps). It includes developers building software and applications, users utilizing these applications, businesses offering products and services, and community initiatives promoting and improving the ecosystem.

Key Features
  • Decentralized and Immutable Blockchain: Ethereum Classic operates on a decentralized network of nodes, ensuring the immutability of transactions once added to the blockchain.
  • Smart Contracts and DApps: ETC supports the creation of smart contracts and decentralized applications, enabling automated actions and decentralized governance.
  • Open-Source Platform: The platform is open-source, allowing community collaboration and development.
  • ETC Token: The ETC token is used as "gas" to pay for transactions and has a limited maximum supply.
  • Proof of Work Consensus: Ethereum Classic uses a Proof of Work consensus mechanism, ensuring the security and decentralization of the network.

Overall, Ethereum Classic provides a decentralized, immutable, and open-source platform for the development of decentralized applications and smart contracts, with a strong focus on security, decentralization, and community collaboration.

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Ethereum Classic's strengths

Ethereum Classic (ETC) prides itself on several key strengths:

  1. Immutability: Ethereum Classic adheres to the principle that "code is law," meaning that the history of the blockchain cannot be changed or reversed by anyone. This ensures that the blockchain remains immutable and secure.

  2. Fungibility: Ethereum Classic ensures that each token is interchangeable and indistinguishable from another, maintaining the integrity of the blockchain.

  3. Censorship Resistance: Ethereum Classic is not controlled by any central authority or intermediary, making it a censorship-resistant currency. Transactions are verified by a network of nodes that follow the original rules of Ethereum, which cannot be changed or reversed by anyone.

  1. Store of Value: ETC can be used as a store of value, similar to Bitcoin, as it maintains or grows purchasing power over time.

  2. Utility Token for Decentralized Applications: The ETC token can be used to access and participate in various decentralized applications built on the Ethereum Classic platform, providing services such as VPNs, travel booking, and more.

  3. Payment: Ethereum Classic is being considered by large corporations like Amazon and Microsoft as a means of settling transactions without the need for financial intermediaries.

  1. Decentralized Governance: Ethereum Classic operates on a decentralized consensus mechanism called Proof of Work, where miners compete to solve mathematical problems and add new blockchain blocks, ensuring that all nodes agree on the state of the blockchain.

These strengths highlight Ethereum Classic's commitment to decentralization, security, and immutability, making it an attractive option for those who value these principles in a cryptocurrency.

Ethereum Classic's risks

Ethereum Classic (ETC) carries several risks that investors should be aware of:

  1. Volatility: ETC's price can fluctuate rapidly, leading to significant gains or losses. This volatility is inherent to most cryptocurrencies, making it essential for investors to be prepared for market changes.

  2. 51% Attacks: ETC is vulnerable to 51% attacks, where an attacker controls the majority of the network's mining power, allowing them to manipulate transactions. This has happened four times in the past, causing security concerns.

  3. Lack of Formal Governance: Unlike some other cryptocurrencies, ETC does not have a centralized organization or foundation overseeing its development and decision-making. This can lead to challenges in reaching consensus and making important decisions.

  1. Competition from Other Cryptocurrencies: ETC faces competition from other cryptocurrencies and blockchain platforms. While it has a dedicated community and a strong development team, there is no guarantee that it will maintain its position in the market.

  2. Security Breaches: Individual wallets and exchanges may be vulnerable to hacking or other security breaches, which can compromise the security of ETC investments.

  3. Regulatory Changes: Governments are still grappling with how to regulate cryptocurrencies, and new regulations could impact the value and usability of ETC. Investors should stay informed about regulatory developments and be prepared for potential changes in the legal landscape.

  1. Technical Issues: ETC is not immune to technical issues such as software bugs or vulnerabilities, which can impact its performance and security.

  2. Scalability Issues: ETC faces scalability issues, which are a significant concern for mass crypto adoption. Its less malleable code makes it less adaptable to changes, which can hinder its growth.

  3. Energy Consumption: ETC's proof-of-work system consumes more energy compared to Ethereum's proof-of-stake mechanism, which can be a concern for environmental sustainability.

  1. Market Performance: ETC has a lower market performance than Ethereum, with a lower price, market capitalization, trading volume, and liquidity.

These risks highlight the importance of thorough research and careful consideration before investing in Ethereum Classic.

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Did Ethereum Classic raise funds?

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Ethereum Classic’s team

  • Bob Summerwill: Executive Director of the Ethereum Classic Cooperative.
  • Alison Alexis: Financial Controller and Business Services at the Ethereum Classic Cooperative.
  • Isaac Ardis: Core Developer of Ethereum Classic.
  • Chris: Team member of the Ethereum Classic Cooperative.

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