ETC is one of two crypto assets that emerged after a hard fork of the Ethereum network in 2016. Before the fork, there were strong disagreements within the community on how to respond to the infamous DAO hack. The consequences of the hack are still present on the Ethereum Classic blockchain. ETC uses proof-of-work to secure the ledger of transactions and there's currently no plans to transition to proof-of-stake. The total supply of ETC has been capped at 210.7 million coins.
What is the Ethereum Classic blockchain?
The Ethereum Classic blockchain is similar to the Ethereum blockchain. However, the former had a 30-day birthday, whereas the latter has a hard-coded one. During the hard fork, the original chain split into the two. One of the advantages of Ethereum Classic is that it is simpler to understand. An easier to follow version of Ethereum will probably lead to more adoption and trading volume. The ETC community has been fairly welcoming and receptive to all newcomers, which may help. What are some important features of the Ethereum Classic blockchain? Proof-of-stake (PoS) is one of the important new features. Ethereum Classic uses a proof-of-stake consensus system instead of proof-of-work. This is a popular consensus algorithm, which makes it easier to deploy and scale.
Why is Ethereum Classic different from Ethereum?
Several developers have since left Ethereum in order to maintain separate development efforts. Because of this, ETC has a distinct development philosophy from its more successful cousin: consensus protocol security, development speed, and priority on building a vibrant community. Additionally, ETC is much smaller than ETH, the main Ethereum crypto asset with an active user base, and has been around longer. Is Ethereum Classic the same thing as Ethereum? Is Ethereum Classic related to the Ethereum blockchain? In essence, yes. While there have been many varying opinions over what Ethereum or Ethereum Classic are, the communities generally agree that Ethereum Classic is an entirely separate cryptocurrency that's grown in popularity over time.
How does the ETC token work and how to use it in exchanges?
ETC provides a small monetary incentive for miners to contribute to the network in exchange for a "share" in the network's mining rewards. The idea is that miners won't mine ETC unless they have enough incentive to do so in the form of Ether. The rewards for mining on the ETC network have increased in recent months to compensate for the lower value of ETH. For example, ETC mining rewards started at 17.7 ether and are currently at 0.05 ether. There's no support for adding additional supply on the Ethereum Classic blockchain and the token will not have additional utility after the hard fork, according to the Ethereum Foundation. How can ETC be traded? Bitfinex has recently added ETC to its trading platform as one of the first major exchanges to support the ETC token.
Who uses ETC and what are some use cases we can expect in the future?
Because ETC is still an open protocol, Ethereum Classic remains an active cryptocurrency. With its decentralized network, ETC can be used as a digital voting tool, financial settlement, and an inter-blockchain communication method. On the digital currency market, ETC is trading in the range of $0.95 – $1.23 USD. Its most popular application is in the payments and micropayments industry. ETC was the second crypto asset to be created after Bitcoin and thus holds a similar value to Bitcoin in terms of purchasing power. In fact, there are services which enable you to purchase ETC using Bitcoin. Several companies are creating new apps and applications using the Ethereum Classic blockchain.
Conclusion
Bitcoin is the crypto asset with the highest market cap. ETC has the second highest market cap and is one of the few true alternative cryptocurrencies. Because of its complexity and features, ETC has managed to have a relatively healthy market cap despite the decline of Bitcoin. Bitcoin is prone to its own set of issues and ETC may see a similar decline in price. However, it's hard to predict what will happen to ETC.