What Is Ethereum Classic, and How Is It Different?

Ethereum Classic is a decentralized smart contract network similar to Ethereum. It is built upon the original Ethereum protocol and runs smart contracts based on its own blockchain. Ethereum Classic is a fork of the original Ethereum blockchain. It was developed because of a disagreement on how to handle the DAO hack in 2016. 

In this article, we will explore what Ethereum Classic is, how it works, how it differs from Ethereum, and how to invest in ETC. 

What Is Ethereum Classic?

Ethereum Classic is an open-source, decentralized computer network that was created in 2016 after the DAO hack. It is based on the Ethereum blockchain. The original Ethereum blockchain was created in 2015 by Vitalik Buterin.

However, due to a disagreement over how to handle funds lost in the DAO hack, the Ethereum community split into two camps — those who wanted to keep the original chain intact (Ethereum Classic), and those who wanted to create a new chain with the DAO funds restored (Ethereum).

The Ethereum Classic network consists of a public blockchain, which anyone can access and use, and a decentralized virtual machine, Ethereum Virtual Machine (EVM), that executes smart contracts. Smart contracts are programs that run exactly as programmed and can be used to facilitate, verify, or enforce the negotiation or performance of a contract.

The Ethereum Classic network’s token is known as ETC. This token can be traded and is also used to pay for transaction fees and gas costs incurred when running smart contracts on the network.

History of Ethereum Classic

Ethereum Classic is a fork of the Ethereum blockchain. It came into existence in 2016 after a hard fork that split the Ethereum community. The hard fork was the result of a disagreement over how to handle the DAO hack. 

The DAO was a smart contract built on the Ethereum blockchain that raised funds for projects built on the Ethereum platform. The hack resulted in the loss of about 3.6 million ETH, which led to a debate over whether to hard fork the Ethereum blockchain to refund the investors who lost money in the hack.

The community eventually decided to hard-fork, and those who disagreed with the decision formed Ethereum Classic. Ethereum Classic has since grown into a strong project with its own roadmap and goals. 

How Does Ethereum Classic Work?

Ethereum Classic is an open-source, decentralized computer platform that runs smart contracts. These contracts are applications that run exactly as programmed without any third-party interference or fraud. 

The Ethereum Classic network is powered by the native token, called ETC. This token is mined through a process called Proof of Work (PoW). Miners compete to solve complex mathematical problems in order to add blocks of transactions to the Ethereum Classic blockchain. In return for their efforts, miners are rewarded with ETC. 

The Ethereum Classic blockchain is immutable, meaning that once a transaction is recorded on the blockchain, it cannot be altered or removed. This makes Ethereum Classic a very secure platform, as well as attractive to developers who want to build applications that require a high degree of security and transparency.

Ethereum Classic vs Ethereum: What’s the Difference?

When it comes to Ethereum Classic and Ethereum, there are a few key differences that are worth noting. 

Supply Limit

The supply of Ethereum Classic is capped at 210 million tokens, with no further issuance possible. This compares to Ethereum’s supply of ETH, which is unlimited. This means that once all 210 million ETC are mined, no more will be created.

The hard cap on the total supply of ETC ensures scarcity and gives holders a sense of security knowing that their investment is backed by a finite resource. The difference in supply schedules is due to diverging philosophies among the developers of each project. 

The Ethereum Foundation believes that crypto assets should have infinite supplies to allow for growth and innovation, while the team behind Ethereum Classic believes that capping supply helps to preserve value and promote stability.

Proof of Work vs Proof of Stake

A major difference between Ethereum Classic and Ethereum is that Ethereum Classic is mined through a process known as Proof of Work, unlike the latter, which switched to Proof of Stake in September 2022. 

Proof of work is a computationally intensive process that requires miners to solve complex mathematical problems in order to add new blocks to the blockchain. The miner who solves the problem first is rewarded with newly minted coins.

Proof of stake is a less resource-intensive process that allows users to earn rewards for validating transactions and producing new blocks. In PoS, users must stake their coins in order to participate in the network. The more coins a user stakes, the greater their chances of being selected to validate a block.

Adoption

When it comes to overall adoption, ETH is far ahead of ETC. According to CoinMarketCap, ETH is the second-largest cryptocurrency by market capitalization with a market cap of over $147 billion, while ETC is currently ranked 23rd with a market cap of over $2.7 billion as of November 27, 2022. 

ETH also has significantly more real-world usage than ETC. For example, ETH is used by numerous businesses and organizations for developing decentralized applications (Dapps). Additionally, a growing number of people are using ETH to pay for goods and services. In contrast, ETC has very little real-world usage.

Community Size

Another key difference is that Ethereum Classic has a much smaller community and development team than Ethereum. This is likely due to the fact that Ethereum Classic was created after the DAO hack and did not have the head start Ethereum enjoyed. As a result, Ethereum Classic has lagged behind Ethereum in terms of features and overall community members.

Here is a brief video that explains the differences of Ethereum and Ethereum Classic for further reference:

What to Know Before Investing in Ethereum Classic

If you’re thinking about investing in Ethereum Classic, there are a few things you should know first. Ethereum Classic is a fork of the original Ethereum blockchain, which means it’s a separate and independent entity. That also means that it has its own token, called ETC.

Investing in any cryptocurrency is risky, and Ethereum Classic is no exception. The price of ETC can be volatile, and it’s important to do your research before investing. You should also be aware of the potential risks associated with forks in general. 

However, Ethereum Classic does have some advantages over other cryptocurrencies. For one, it’s been around for longer than many other altcoins, which gives it more credibility. It also has a strong development team and community behind it. 

If you’re considering investing in Ethereum classic, make sure you understand all the risks involved before doing so. But if you’re comfortable with those risks, then ETC could be a good investment for you.

How to Get Ethereum Classic

There are a few different ways to get your hands on some Ethereum Classic (ETC). You can buy or mine it. 

Buying 

When it comes to buying Ethereum Classic, there are a few different options available. One option is to buy ETC directly from an exchange and the other is to buy ETC peer-to-peer (P2P). 

Exchange Platforms

If you want to buy Ethereum Classic (ETC), you can do so from an exchange platform. Here’s how to buy ETC from an exchange platform:

1. Select a reputable exchange platform. Try to compare the features and fees of each one before deciding which to use. If you are new to crypto trading, we suggest using an exchange that has a user-friendly platform and educational resources.
2. Once you have found an exchange that you want to use, you will need to create an account. Ensure you create the account with the full name written on your ID as most exchanges require identity verification before you can be allowed to trade.
3. After creating an account, you need to deposit funds into it. Many exchanges allow you to deposit funds into your account through your cards.
4. Once your account is funded, simply locate “Buy” on your exchange platform.
5. Select Ethereum Classic from the menu.
6. Enter the amount of ETC you want to purchase.
7. Confirm your order.
8. Once your order has been confirmed, your ETC will be deposited into your wallet.

Peer-to-Peer

If you’re looking to buy Ethereum Classic (ETC) peer-to-peer (P2P), there are a few things you’ll need to take into account. 

1. First, make sure you have a secure and reliable Ethereum Classic wallet set up. 
2. Next, find a reputable P2P exchange that supports ETC trading. 
3. Once you’ve found an exchange, create an account and deposit some funds. 
4. Finally, search for an ETC seller and proceed with the trade. Remember to always exercise caution when trading P2P, and never send funds before receiving the coins in your wallet.

Mining

Mining is the process of verifying and adding transactions to the Ethereum Classic blockchain. Miners are rewarded with ETH for their efforts. In order to mine, you’ll need to set up a full node and have a sufficient amount of computing power. 

Things to Know Before Mining ETH

If you’re interested in mining Ethereum Classic, there are a few things you’ll need to keep in mind. First, Ethereum Classic uses a different mining algorithm than Ethereum (ETH), so you’ll need to use specialized mining software. 

Second, Ethereum Classic’s difficulty is constantly changing, so you’ll need to make sure your rig is configured to adjust accordingly. Also, since Ethereum Classic is a decentralized network, there’s no centralized authority to pay miners, so you’ll need to make sure you have a wallet set up to receive your rewards. 

Mining Ethereum Classic is very similar to mining Ethereum. Both use the Ethash algorithm, which is designed to be ASIC-resistant. This means that miners can use their existing GPUs to mine Ethereum Classic. 

The main difference between the two cryptocurrencies is that Ethereum Classic has a lower block reward. This means that miners will earn less ETC for each block they mine. However, Ethereum Classic also has a lower difficulty, so it may be easier to find blocks and earn rewards.

How to Mine ETC

To start mining Ethereum Classic, here’s what you need to do.

1. Get the appropriate mining hardware. You can use GPUs to mine ETC, and they are quite affordable. However, ASIC is more efficient for mining ETC. But it’s also quite expensive.  
2. It is very important that you download the appropriate software for your operating system. 
3. Once you have installed the software, you will need to create an account with a mining pool. A mining pool allows miners to work together to find blocks and earn rewards more efficiently. After you have created an account, you will need to configure your miner settings. These settings will tell your miner how much power it should use and what kind of coin you want it to mine (ETC or ETH). 
4. Once you have configured your miner, you can start mining!

Where to Store Ethereum Classic

There are a few different options available for those looking to store their Ethereum Classic tokens. One option is to use a hardware wallet, such as the Ledger Nano S or Trezor Model T. These devices allow you to store your ETC offline in a secure location, away from potential hacks or malware. 

Another option is to use an online wallet, such as MetaMask or MyEtherWallet. These wallets offer convenience and ease of use, but they are not as secure as hardware wallets since they are connected to the internet. 

Finally, you can also store your ETC on an exchange that supports the token. However, this is generally not recommended since exchanges are often subject to hacks and other security breaches.

No matter which method you choose, be sure to take measures to keep your ETC safe and secure. This includes keeping your private keys safe and avoiding phishing scams. With proper care and caution, you can ensure that your ETC tokens are well-protected against any potential threats.

Should You Invest in Ethereum Classic?

When it comes to cryptocurrency, there are a lot of different options out there. One option is Ethereum Classic (ETC). So, should you invest in Ethereum Classic? Let’s take a look at some of the pros and cons. 

On the plus side, Ethereum Classic has a strong development team and community behind it. The team is constantly working on improving the platform and expanding its capabilities. Additionally, ETC is one of the more established cryptocurrencies, having been around since 2016.

This gives it a bit more stability compared to some of the newer coins on the market. On the downside, Ethereum Classic is not as widely accepted as some other cryptocurrencies. For example, it’s not yet possible to use ETC to purchase goods and services directly from many major merchants. 

Additionally, the value of ETC can be quite volatile, so there’s always a risk that your investment could lose value quickly. So, should you invest in Ethereum Classic? Ultimately, it’s up to you to decide whether or not you think ETC is a good investment for you. However, we recommend doing your own research and consulting a financial advisor before making any final decisions.

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