What is Ethereum Classic and How Does it Work?

Ethereum Classic: A Guide to the Original Ethereum Blockchain

If you are interested incryptocurrencyand blockchain technology, you may have heard of Ethereum Classic (ETC). ETC is a decentralized platform for buildingsmart contractsand decentralized applications (dapps), just like Ethereum (ETH). However, ETC is a separate blockchain that was created as a result of a controversial hard fork in July 2016, which split the original Ethereum blockchain into two: Ethereum and Ethereum Classic. In this article, we will explore what Ethereum Classic is and how it works.

What is Ethereum Classic?

Ethereum Classic is the original Ethereum blockchain that did not undergo the hard fork that created Ethereum. The hard fork was the result of a debate within the Ethereum community about a hack that exploited a vulnerability in a popular smart contract known as the DAO (Decentralized Autonomous Organization). The hack resulted in the loss of millions of dollars worth of ETH. In response, the Ethereum community decided to create a new blockchain with a new set of rules that would allow the stolen funds to be returned to their rightful owners. However, a group of Ethereum users disagreed with this decision, arguing that the immutability of the original blockchain was more important than recovering the stolen funds. As a result, they continued to use the original blockchain, which became known as Ethereum Classic.

How Does Ethereum Classic Work?

Ethereum Classic works in a similar way to Ethereum, but with some key differences. Both blockchains use a Proof-of-Work consensus algorithm, which means that miners compete to solve complex mathematical problems to validate transactions and create new blocks. However, Ethereum Classic has a different monetary policy than Ethereum. While Ethereum has a hard cap on its total supply of 120 million ETH, Ethereum Classic has no hard cap, and its total supply is unlimited. This means that new ETC can be created indefinitely through the mining process.

Another difference between Ethereum and Ethereum Classic is the way they handle smart contracts. Ethereum has a built-in mechanism for handling bugs and vulnerabilities in smart contracts, known as the Ethereum Improvement Proposal (EIP) process. This process allows for the quick and easy deployment of patches to fix vulnerabilities in smart contracts. Ethereum Classic, on the other hand, has a more hands-off approach to smart contracts. While it does have a similar EIP process, it is up to individual developers to fix any bugs or vulnerabilities in their smart contracts.

Investing in Ethereum Classic

If you are interested in investing in Ethereum Classic, there are a few things to keep in mind. First, like all cryptocurrencies, ETC is a highly volatile asset, and its price can fluctuate rapidly. It is important to do your own research and understand the risks involved before investing. Second, it is important to choose a reliable cryptocurrency exchange to buy and sell ETC. Look for an exchange with a good reputation, high trading volume, and strong security measures. Finally, be sure to keep your ETC in a secure wallet, such as a hardware wallet, to protect it from theft or loss.

Conclusion

Ethereum Classic is an interesting and unique blockchain that has a passionate community of supporters. While it shares many similarities with Ethereum, it has some key differences that make it distinct. Whether you are interested in investing in ETC or just learning more about blockchain technology, Ethereum Classic is definitely worth exploring.