Born during hard times, Ethereum Classic (ETC) should have been the undisputed king of Altcoins if the split didn’t happen in 2016 after the infamous DAO hack that jolted the blockchain industry to the core. New investors while making an investment decision often get confused when they compare Ethereum and Ethereum Classic. Though the symbols look similar, there’s a lot of difference between the two blockchains. Today, I will try to clear the air and explain everything you need to know about Ethereum Classic (ETC coin). Let’s dive in –
What is Ethereum Classic?
Ethereum Classic (ETC) is a decentralized blockchain-based platform which is built for smart contracts. It’s the oldest and the original version of Ethereum (ETH) blockchain. The applications that run on the platform are immutable and without censorship, manipulation, downtime & third party interference. In short, there’s no possibility of governance.
History of Ethereum Classic:
Ethereum Classic is the original version of the Ethereum blockchain. It came to inception after the hard fork that took place in 2016 post the DAO hack. A consensus was established within the Ethereum community to make the hack redundant by hard forking (explained in Cryptocurrency terminology) the complete Ethereum network. The step sounded logical at first, however a large part of the group didn’t agree on the proposal as it was breaking the reason behind creating a decentralized system.
The debate split the Ethereum community into two groups, one favoured the hard fork while other supported the code by following the decentralization principles hence named the original chain Ethereum Classic.
The DAO Hack:
DAO stands for Decentralized Autonomous Organization which was launched in the year 2016 on Ethereum blockchain. It was one of the famous projects of the time that was intended to act as a venture capital fund. The DAO was very successful in raising $150 million worth of ether (ETH) in just 3 weeks from its crowdfunding efforts with participation from 11,000 investors.
Everything was going upside then one day the project was hacked and the hacker drained an estimated $70 million worth of ether from the total funded amount. The hack stole nearly 14% of the total Ethereum supply in circulation. It was more like a survival threat to Ethereum. The only way to recover the funds and make the hack redundant was to hard fork Ethereum.
Hard fork was completed and Ethereum was back on track but the part of the group that supported the original principles of Code stayed and continued with the original blockchain and named it Ethereum Classic.
Ethereum Classic follows the principle of “Code is Law”
Code is Law:
In blockchain, Code is law means that any transaction or process completed on the network is final and immutable. In simpler terms, once the process is completed no one has the right to change the outcome of the process post its completion which also indicates that no one can change the execution code. What’s done is final.
For example, the Banking system of today displays your account balance and day-to-day transactions. However, these transactions or your account statement are open to manipulation by the bank. Of course, there’re legal laws that prevent such acts but the possibility is always there.
When one says Code is Law, there’s absolutely no possibility of alteration. You and I have no right to change or alter the outcome of the said transaction. What’s done is final. That’s what decentralization stands for, no ownership model.
What is Ethereum ETC coin?
ETC is the native currency of Ethereum Classic blockchain. It is used to secure the network and help in creating smart contracts on the Ethereum Classic network. At the time of writing, ETC stands at number 25th by market cap.
Total supply of ETC is capped at 210 Million
Ethereum Classic vs Ethereum
|Comparison Type||Ethereum Classic (ETC)||Ethereum (ETH)|
|Principle||Code is Law||Consensus Rules|
|Total Supply||210 Million||Unlimited|
|Protocol||POW||Shifting to POS|
Ethereum Classic Advantages:
Ethereum Classic follows Code is Law and have zero immutability rule. Therefore, expect no interference or change in the outcome of any transaction conducted on the platform. The same goes for creating smart contracts.
Smart Contract Creation:
Ethereum Classic supports smart contracts. In fact, it is the first smart contract-based blockchain solution. Since the source code is similar to Ethereum. A developer can create a smart contract on similar lines as he can create on the Ethereum network.
Store of Value:
ETC coin or the native token of Ethereum Classic can be a store of value. If the blockchain is able to compete with the upcoming projects accompanied by the rise in adoption rate. The outcome will be an increase in the price value of the ETC token.
ETH switching to POS can be a good news for ETC. Mining may shift to ETC from ETH
Ethereum Classic Disadvantages:
Loss of Trust:
The DAO hack highlighted the vulnerability of Ethereum network. This event led to the loss of investor’s trust in the Ethereum Classic blockchain, even after the hard fork. Moreover, there’s no major update on Ethereum Classic that can impress investors to come back to the network.
Proof of Work:
Ethereum Classic is sticking to POW protocol which has drawn criticism from environmental advocates while popular blockchains like Cardano (ADA), Polkadot (DOT), Solana (SOL) have integrated the new proof of Stake (POS) consensus mechanism which is fast and energy-efficient.
Low PR activity:
Tell me the last time you heard news on Ethereum Classic? Perhaps most of the readers and investors hear a lot about Ethereum 2.0 update but hardly anyone is talking about Ethereum Classic. A marketing and PR (public relations) team is part of the core of any project that needs investors or clients to support and run its business. Unfortunately, Classic is lacking in this space.
Rise of Tech-Savvy Competitors:
After the hard fork, Ethereum Classic had the first-mover advantage to revolutionise how people view blockchain technology. However, it has missed the opportunity and the baton has been passed on to the new emerging blockchains like Solana, Polkadot etc.
Ethereum Classic Price:
Ethereum Classic Price Prediction:
Catching on the Ethereum wave, Ethereum Classic has its share of success in the last bull run. It has reached an all-time high of $175 followed by an all-time low of $32 in the recent market crash. Clearly, it’s a highly volatile cryptocurrency.
Though the project fundamentals are clear, it lacks the competitive edge. Moreover, the rise of new blockchains poses a serious threat to its existence. Let’s not forget how Ethereum is upgrading to ETH2.0 and levelling up with the competition. Something that lacks in Ethereum Classic.
Clubbing my thoughts in a phrase, I am neutral to negative on the growth potential of Ethereum Classic price levels when there’re are projects like Solana (SOL) and Cardano (ADA) taking up all the limelight. It will be a miracle if it hits the lucky $1000 in the next bull run but a bear market has the potential to completely wipe out the project and you may see it rolling in single digit below $10.
How to buy Ethereum Classic?
Ethereum Classic (ETC) is available to buy, sell or hold on all the leading cryptocurrency exchanges like Binance and Coinbase. Simply register your account and start trading ETC coins. Remember to check out Binance native token Binance Coin.
Indian users can use WazirX cryptocurrency exchange to buy Ethereum Classic or any other cryptocurrency on the platform. Simply, create an account and verify your KYC. Once approved you can load INR and buy the cryptocurrency of your choice. Check out my review of Wazirx WRX coin, a native token of the exchange with huge potential.
Is Ethereum Classic (ETC) worth investing in?
Ethereum Classic have what no other blockchain have in common and that is being immutable and censorship-free. Though these features aren’t enough to sail the boat when you have new blockchains coming up with better offerings and features.
It’s going to be a tough race to win for the Classic. Its closest competitor Ethereum already leading with ETH 2.0 upgrade while Classic is still waiting for the major upgrade. 5 years back time was on the side of Ethereum Classic but now the tablets have turned. The blockchain industry is entering into a consolidation phase and I doubt if Ethereum Classic can make it.
Having said that, I would rather choose Ethereum ETH over Ethereum Classic ETC. That’s my view of the Classic version. What about you?
This completes my review of Ethereum Classic ETC coin. Hope you enjoyed reading it. In the next post i will review Ripple XRP cryptocurrency, Uniswap exchange and Brave Browser BAT coin. If you like the post, please share it and educate your friends. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.