ETC, short for Ethereum Classic, is a decentralized cryptocurrency and open-source blockchain platform that was created in July 2016 as a result of a split from the original Ethereum blockchain. In this article, we will delve deeper into the history, technology, and future of ETC.
History of Ethereum Classic (ETC)
In 2015, Ethereum was launched as an open-source blockchain platform with the goal of creating a decentralized platform for building smart contracts and decentralized applications (DApps). Ethereum was well-received and quickly gained a large following in the crypto community.
However, in June 2016, an incident known as “The DAO Hack” occurred. The DAO was a decentralized autonomous organization built on top of the Ethereum blockchain. It was essentially a venture capital fund where people could invest in projects and receive a portion of the profits. The DAO was hacked, resulting in the theft of around 3.6 million Ether, which was worth around $50 million at the time.
In response to the hack, the Ethereum community proposed a hard fork of the Ethereum blockchain to revert the transactions and return the stolen funds to their owners. This was controversial, as some members of the community believed that a blockchain should be immutable, and transactions should not be reversed. These members continued to use the original Ethereum blockchain, which became known as Ethereum Classic.
Ethereum Classic uses the same technology as Ethereum, with some key differences. It uses a proof-of-work consensus algorithm, meaning that miners compete to solve mathematical puzzles in order to validate transactions and create new blocks on the blockchain. This is in contrast to Ethereum, which is in the process of transitioning to a proof-of-stake consensus algorithm.
ETC uses the same programming language as Ethereum, Solidity, and is compatible with Ethereum’s smart contracts and DApps. However, there are some differences in the codebase between the two blockchains, which means that not all Ethereum applications are compatible with Ethereum Classic.
ETC has a fixed supply of 210 million tokens, which is different from Ethereum’s supply, which is unlimited. This means that ETC may be more attractive to investors who are concerned about inflation and want a fixed supply of tokens.
The future of Ethereum Classic is uncertain. It is currently the 31st largest cryptocurrency by market capitalization, with a market cap of around $1.2 billion as of March 2023. It is not as well-known as Ethereum or some of the other major cryptocurrencies, but it has a dedicated following and is actively being developed.
One potential use case for ETC is as a store of value. Some investors see ETC as a hedge against inflation, as the fixed supply means that the value of each token may increase over time as demand for it increases.
Another potential use case for ETC is in decentralized finance (DeFi). ETC is compatible with many Ethereum-based DeFi protocols, which means that it could be used as collateral for loans or as a means of exchange in decentralized exchanges (DEXs).
Ethereum Classic is a decentralized cryptocurrency and blockchain platform that was created as a result of a split from the original Ethereum blockchain. It uses the same technology as Ethereum, but with some key differences, including a fixed supply and a proof-of-work consensus algorithm. While its future is uncertain, ETC has a dedicated following and is actively being developed, with potential use cases including as a store of value and in decentralized finance.