Decoding Ethereum Classic (ETC)
Introduction to Ethereum Classic
Ethereum Classic, a cryptocurrency similar to Bitcoin but independent from Ethereum, utilizes blockchain technology and consensus rules from the original Ethereum network. Although Ethereum Classic ranks high in terms of market capitalization, it remains significantly smaller than Ethereum. Read on to discover the workings of Ethereum Classic, its distinctions from Ethereum, and its potential as an addition to your cryptocurrency investment portfolio.
Understanding Ethereum Classic
Launched in 2016 as a hard fork from Ethereum, Ethereum Classic (ETC) operates on a separate blockchain supporting smart contracts and decentralized applications. Stemming from a significant hacking incident that led to the loss of 3.6 million Ethereum tokens, Ethereum Classic emerged from the disagreement within the Ethereum community regarding the response to the hack. Unlike Ethereum, Ethereum Classic adheres to the original Ethereum ledger and utilizes the proof-of-work protocol to validate transactions. This sets it apart from Ethereum, which also incorporates a consensus mechanism known as proof of stake.
Key Features of Ethereum Classic
One distinctive feature of Ethereum Classic is its preservation of the original Ethereum blockchain, which facilitates the development and launch of open-source applications and smart contracts. With an existing supply of 131.15 million ETC out of a total of 210.70 million ETC, Ethereum Classic continues to be mined using the proof-of-work protocol.
Mining Ethereum Classic
To mine Ethereum Classic, a network of computers operated by miners competes to verify blocks of transactions and earn rewards in the form of transaction and network fees. As the total supply of 210.70 million ETC becomes fully mined, miners will transition to receiving rewards solely from transaction fees.
Acquiring Ethereum Classic
Ethereum Classic can be purchased on various cryptocurrency exchanges and through some retail brokerages, as well as decentralized exchanges using compatible wallets like Trezor, Ledger, or Trust Wallet. It is important to note that certain platforms may impose transaction fees and processing times based on network congestion.
Recent Developments for Ethereum Classic
Since its inception following a contentious hard fork from Ethereum in response to a major hack of the blockchain, Ethereum Classic has faced challenges, including 51% attacks in 2019 and 2020. Despite these incidents, Ethereum Classic remains a significant player in the cryptocurrency market, distinct for maintaining the original Ethereum blockchain and enabling the development of smart contracts and decentralized applications.
