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What is Ethereum Classic? ETC guide and why it forked from Ethereum

What is Ethereum classic?

Ethereum Classic is an Ethereum hard fork that acts as a blockchain, network, community and also as a cryptocurrency taking digital assets to new levels. Apart from facilitating the transfer of funds from one person to another, Ethereum classic also creates a platform to run complex autonomous contracts without any alteration.

Ethereum classic vs Ethereum

The intended purpose of creating Ethereum classic was so that it could preserve the codes used on Ethereum before its DAO project got hacked. It is important to note that the Ethereum and Ethereum Classic had similar blocks up to block 1920000 when the hacking took place.

After the 1920000 blocks, an Ethereum fork had to be done to compensate the lost Ethers. Ethereum classic, being an Ethereum fork means that its value will always be tied to that of Ethereum.

The narrative behind the development of ETC

In 2015, Ethereum started a Decentralized Autonomous Organization project that was to provide funding capital for developers who wished to develop decentralized applications on the Ethereum platform. One year later, the project had received more than $150 million in investments so that it could carry out its operations.

A paper was then released showing weaknesses in the DAO project architecture, but the developers of ETC ignored the claims not knowing that the flaws highlighted would cause their downfall.

During the same year, DAO got hacked, and the same flaws outlined in the paper had been exploited to make the hack a success, leading to the loss of up to $50 million.

The hack left the Ethereum team in a dilemma; they could not revert the hack and refund all investors their Ethers because blockchain philosophy states that no transactions on the blockchain can be edited or deleted.

The dilemma forced Ethereum to undergo a hard fork so that it could revert the DAO hack by copying and modifying their main code. The original main code remained as it was and it received the name, Ethereum classic.

Ethereum classic

Since the separation of the two coins, ETC and ETH have been operating as totally different cryptocurrencies but with similar objectives and vision.

Pros of Ethereum classic

Though most people criticize ETC, this cryptocurrency is bound to succeed because of the following factors;

I.    It enjoys great benefits from sharing its name and a large portion of its code with Ethereum, a leading and successful blockchain.

II.    It received a massive head start in terms of market share, development team and wallet support from Ethereum.

III.    It provides an excellent platform for developers that turned away from Ethereum because of the direction it was taking. 

Cons of Ethereum Classic

Just like any other cryptocurrency present in the market, Ethereum classic has some drawbacks as highlighted below.

I.    The ETC community is still quite small, and most buyers are not real users that use the ETC token for its intended purpose.

II.    It is likely that Ethereum classic will not adhere to future changes made on the Ethereum network.

III.    Most Ethereum classic supporters are bitcoin investors that do not wish to see Ethereum succeeding.

Ethereum Classic’s price history in brief

According to Coinmarket cap, Ethereum classic’s price currently stands at $6,28 with a market cap of $688,497,152.

This current price reflects a more than 60% decrease from its all time high price of $45 in January of 2018. Ethereum Classic is not the only cryptocurrency that suffured such a decline in price.

Bitcoin, for example, saw it’s price slashed from about $20,000 in the same period to close to $4,000. Ethereum also suffered a similar faith with its price dropping from more than $1,000 to less than $200 after the market downturn.

Where to buy Ethereum classic

If you are looking to buy your first Ethereum classic coins, then below, we will look at a list of the best cryptocurrency exchanges from where you can get the coin.

Binance

Binance is one of the leading exchange platforms in the crypto market with about 10 million users and completing trades of +\- 2.5 billion USD on a daily basis. On the exchange, traders can trade Ethereum Classic with the following pairs; ETC/BTC, ETC/BNB, ETC/USDT.

Bittrex

Bittrex is also another leading cryptocurrency exchange where ETC can either be bought or traded. Trading pairs supported by this exchange are ETC/USDT, ETC/BTC, ETC/USD.

Changelly

Changelly allows investors and traders to purchase Ethereum classic and other cryptocurrencies using either their credit, debit cards or other cryptocurrencies.

KuCoin

Investors can also get started with ETC via KuCoin exchange. It is a leading exchange within the crypto space and supports a host of other cryptocurrencies. ETC traders on the exchange have the following pairs to chose from when trading; ETC/BTC, ETC/ETH.

Ethereum Classic wallets

When it comes to ETC, there is a wide option of wallets to store ETC coins. This could either be hardware wallets, mobile wallets, desktop wallets or online wallets.

Ledger Nano S

Currently, this is by far the best hardware wallet in the market to store Ethereum classic coins. Some of the fantastic features that this wallet offers include;

  • An OLED screen that has physical buttons for manipulating the device
  • A back up of all the seed keys
  • Offline private keys
  • Can be used in infected computers
  • Supports up to 22 currencies

Trezor

Ethereum classic

Trezor is one amongst the very first hardware wallets that came into the market and has since gained massive popularity and market share. It is important to note that Trezor became a favorite for most investors because it was the first wallet to support multiple currencies.

Its features are similar to those of Ledger Nano S and could be a good option to store Ethereum Classic if you are planning to invest hugely in the coin.

Atomic wallet

The Atomic wallet has gained much popularity in the crypto market and among ETC investors because of its user-friendly interface. The wallet is also completely decentralized which provides extra security for your funds alongside giving you full control over your funds.

Jaxx wallet

Ethereum classic

The Jaxx mobile wallet can be used to store multiple cryptocurrencies such as Bitcoin, Ethereum, Ethereum Classic, Dash and is popular among ETC investors for its cross-platform pairing feature, native camera scanning, and an easy-to-use UI.

Coinomi

This wallet is popularly known for storing forked coins such as ETC. The Coinomi wallet ensures that all private keys stay within the wallet and its seed keys can help you to restore your funds anytime in case your devise is lost or stolen.

It also has an inbuilt coin exchange integration with platforms such as ShapeShift and Changelly, which is not a standard feature with other wallets.

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Daniel is a determined and experienced writer with a keen eye on emerging technologies. Daniel aims at educating the crypto community on the developments within the space.