Ethereum Classic (ETC)
Ethereum Classic is the first Ethereum blockchain to implement decentralized applications and smart contracts. The appearance of the project was the result of the unshakable faith of its creators in the key principles of decentralization. The Ethereum Classic project symbolizes the importance of cryptocurrency exchangeability and the immutability of the blockchain.
The Ethereum and Ethereum Classic blockchains were one, right up to the notorious DAO attack on block number 1920000.
DAO (Decentralized Autonomous Organization) is a smart contract created on the Ethereum platform. In essence, the DAO was a venture fund in which investors could vote on how to distribute their capital. The fund was so popular that it attracted 14% of all the Ether that existed at that time, raising a total of $ 150 million.
Autonomous execution of a smart contract is both its strengths and weaknesses. In the case of the DAO, the attacker found a flaw in the smart contract, which allowed him to steal more than 3.6 million Ether. The creator of Ethereum Vitalik Buterin and most of the community agreed to implement a hard fork and roll it back to block 1920000, thereby returning the lost funds.
After a hard fork and a refund, the original Ethereum blockchain continued to work and changed its name to Ethereum Classic (ETC). The community, which continued to mine and support the original Ethereum, opposed any interference with what was intended to be an unchanging blockchain. Since then, a lot of time has passed and Ethereum Classic has paved its own path in the world of cryptocurrencies. The Ethereum Classic community hopes the “code is the law” principle will play a key role in the long run.
How does Ethereum Classic (ETC) work
When considering Ethereum Classic, you first need to understand what smart contracts are. Smart contracts were invented by Nick Szabo back in 1994. However, at that time decentralized platforms did not exist for their reliable storage until the ideal candidate for this role – blockchain – appeared. Smart contracts are built on the basis of the Ethereum Classic blockchain and automatically enforce compliance with the rules of the agreement. One day, smart contracts can eliminate the need for intermediary services of banks, insurance, data storage, identification, etc.
Smart contracts Ethereum Classic performs a Turing-complete Sputnik Virtual Machine. In this case, a Turing-complete machine can simulate a Turing machine. Alan Turing’s abstract computer manipulates strings of ones and zeros, mimicking any computer algorithm. It has not yet been proven that a computer can do more than a Turing machine. This means that the Sputnik virtual machine can actually run any computer program. In turn, the essence of Ethereum Classic is not just the decentralization of the currency, but also the creation of a decentralized global computer.
Virtual machine operation is provided by financially stimulated ETC nodes. Nodes receive an ETC fee for processing transactions related to smart contracts. Payments to users are made in Classic Air (ETC).
Emerald Development Kit (SDK)
The toolkit for creating decentralized applications Emerald – the development is no less unique than the Ethereum Classic platform itself. In addition, the Emerald SDK contains other important components for developers such as user interfaces, libraries and tools for building applications. Since Ethereum Classic is a platform, the ultimate goal is for as many developers as possible to make applications on this blockchain. ETC pays great attention to the Internet of things (IoT). In an interview with ETC developer Igor Artamonov said: “Smart contracts on our blockchain are ideal for simple agreements between machines operating within a distributed network and IoT – the most obvious application of such an inter-machine protocol.”
Geth, using the Go programming language, is a ‘multi-purpose command-line tool that manages the filled Ethereum Classic node.’ Geth contains more than 40% of the new code since the Ethereum hard fork, which indicates the active work of the ETC development team. This program allows you to mine ETC, transfer funds between wallets, create smart contracts and manage accounts.
History of Ethereum Classic (ETC)
Ethereum Classic continued the original blockchain and separated from Ethereum in July 2016. It was assumed that the original blockchain would simply disappear after the fork, but mining and trading of coins continued. In the end, ETC appeared on the Poloniex exchange with a one-third price tag from ETH.
After fierce verbal fights at Reddit, the ETC community decided to consolidate the existence of ETC by announcing its own Declaration of Independence: “We believe in a decentralized, censorship and prohibition blockchain-proof. We follow the original Ethereum philosophy, aimed at creating a non-disconnectable global computer that works with irrevocable smart contracts. ”
Principles from the ETC Declaration of Independence:
“The code is the law, no changes to the Ethereum Classic code are permitted that violate the integrity, interchangeability and immutability of the registry. Transaction or registry history cannot be undone or altered for any reason. ”
Naturally, these principles were not in line with Ethereum’s vision, so ETC no longer associated itself with the Ethereum Foundation.
Later, the hacker who got the ETC through an attack on the DAO introduced the stolen funds into circulation, but the ETC price tag turned out to be surprisingly stable. Finally, after all that has happened, Ethereum Classic was able to assemble a development team and set off on its own path.
Coin reserves and stability
ETC is radically different from ETH in terms of mining and coins. Ethereum has a built-in difficulty bomb, which over time makes proof of work mining more difficult. In the end, this will force all miners to switch to proof of stake. In turn, ETC suspended the difficulty bomb, remaining true to the proof of work algorithm.
On average, the formation time of a new block is 10-14 seconds with a reward of 5 ETC per block. Given the high frequency of block generation, transaction fees are relatively small, averaging one cent.
Ethereum Classic is an inflationary coin that will “inflate” through a block reward until 2025, until it reaches a maximum of 210 million coins. Ethereum, on the other hand, has no limit, so it will be an infinitely inflationary coin until the end of its existence. The ETC team believes that their policy makes Classic a safer investment, since the price tag of coins will not constantly fall due to the endless increase in their number.
Ethereum Classic Team (ETC)
Initially, the Ethereum Classic (ETCDEV) team deliberately remained in the shadows. The lack of a vibrant public leader is consistent with their basic philosophy of decentralization and small human intervention. However, this team is no longer relevant.
Ethereum Classic is being developed by ETC Labs and the IOHK Grothendieck team today.
Ethereum Classic Roadmap (ETC)
In 2018, the development team released the first desktop ETC wallet Emerald Desktop Wallet. They also removed the complexity bomb and began working on side chains to improve scalability.
Over the next two years, the Ethereum Classic team will work on compatibility with the Ethereum blockchain, the improvement of the Sputnik virtual machine, and the introduction of sidechains with Proof of Authority (PoA).
Where to buy Ethereum Classic (ETC)
ETC can be found in trading pairs with BTC and ETH on the exchanges Binance, Bittrex, OKEx, HitBTC, etc. Ethereum Classic can also be bought for RUR / USD and mp on the Yobit exchange.
You can also get ETC by mining. The project offers a large list of mining pools on its official website.
Where to store Ethereum Classic (ETC)
There are many options for storing ETC coins. Ideally, use an Ethereum Classic Emerald wallet. If this option does not triple you, there are a lot of additional options recommended by the ETC team itself.
For lovers of mobile wallets, a Jaxx wallet is suitable.
For maximum security, hardware wallets are suitable: both the Ledger Nano S and Trezor. By the way, in this short review you can learn about the pros and cons of each of them and choose the most suitable option for yourself.
With Ethereum Classic, you know that you are investing in a consistent blockchain. In the future, the ETC team hopes that strict adherence to the basic principles will pay off. In turn, the ETH team showed in its example that the human factor could lead to another hard fork. ETC recalls that cryptocurrencies appeared on the ruins of the banking crisis, and Satoshi Nakamoto developed decentralized blockchains as opposed to a spoiled financial sector. “An unchanging blockchain must be free from the human tendency to corruption.” However, cryptocurrency happened earlier, will happen in the future.