By Mark Ackman
Ethereum Classic (ETC) is a type of cryptocurrency that works in a different way than other types of cryptocurrencies.
The launch of ETC was unprecedented in the history of the cryptocurrency marketplace. A segment of Ethereum (ETH) blockchain users opted against adopting the recommended new code from project developers, resulting in the creation of Ethereum Classic.
The problem revolved around the creation of Ethereum Classic was the fact that the code was capable of modifying Ethereum’s record of transactions.
This means there was a possibility the users could have lost their funds in case the DAO application is breached.
Hence, Ethereum Classic was created after the developers of Ethereum upgraded the already existing Ethereum software rather than creating a new code.
Nonetheless, a small group of Ethereum users persisted in utilizing the previous software version that contained evidence of the theft.
By forcing developers to modify the current code, the users of Ethereum forced the developers to create Ethereum Classic.
The launch of Ethereum Classic revolutionized the way blockchains were being launched, operated, and upgraded.
What Led to the Creation of Ethereum Classic?
Ethereum Classic was created after a dispute occurred among the Ethereum community. The immutability of blockchains is considered one of their fundamental characteristics.
In other words, users cannot modify the newly added transactions to the blockchains.
But, the Ethereum community felt that this newly proposed code by the developers amid the popularity of DAO could sacrifice the immutability of the Ethereum blockchain.
On the flip side, the developers proposed the new code as a one-time solution for a trial version of the software.
The Difference between Ethereum and Ethereum Classic
Initially, Ethereum and Ethereum Classic were both created by using the same source code. But, later on, ETC’s technology was differentiated by the developers.
Ethereum Classic still uses the proof-of-work framework for its mining, the proof-of-work mining frame is a similar framework being used by the Bitcoin miners.
Despite the fact that a large number of cryptocurrencies are using a proof-of-stake mining framework.
But, as of 2020, Ethereum Classic uses a proof-of-work framework. But developers are continuously working on the development of the new operational framework.
This means both Ethereum and Ethereum Classic will move away from the proof-of-work framework.
Another interesting fact about ETC is that the currency has opted for a fixed monetary policy.
Since the price of ETC is influenced by its scarcity, hence there is a limit to the amount of ETC that can be produced. As of now, only 230 Ethereum Classic tokens can be mined.
What Are The Benefits of Using Ethereum Classic?
What distinguished Ethereum classic from other cryptocurrencies is its fixed monetary policy.
Those who are backing Ethereum Classic, still believe that it can function as a means of preserving wealth, similar to (Bitcoin).
Investors may find it worthwhile to note that ETC tokens are expected to become increasingly scarce over time.
It is worth mentioning that ETC is a native coin for Ethereum Classic. In terms of functionality, Ethereum Classic and Ethereum are so compatible with each other.
With the growing popularity of Ethereum Classic, more and more people are suggesting that at some time point, Ethereum and Ethereum Classic must collaborate.
Blockchains like Ethereum have the capacity to develop and run apps on their own. As of now, a very small number of decentralized apps are operating. But in the future, their numbers can increase significantly.
Developers have the ability to build decentralized applications and new digital currencies using Ethereum as the underlying technology.
The creation of Ethereum Classic is also based on a similar vision. Nonetheless, the creators have chosen to continue their development by implementing alternative technical choices.
In recent times, decentralized crypto exchanges and decentralized applications are becoming popular.
In the future, we can see more decentralized crypto exchanges entering the marketplace. Ethereum Classic can go as big as Ether and Bitcoin, in terms of price.