Understanding the Fundamentals of Ethereum Classic

Ethereum Classic is an old version or an old member or Ethereum Network. Though it has seen its ups and downs in the crypto market, it still has its very own dedicated community which always tries to keep it on track. And that is why Ethereum Classic is still among the top cryptos in the world among 1000s of other cryptocurrencies.

So, if you want to know more about Ethereum Classic and its journey, then you are in the right place. This tutorial on Ethereum Classic will cover various important concepts and components of Ethereum Classic as mentioned below:

1. Origin of Ethereum Classic
2. What is Ethereum Classic?
3. Why is Ethereum Classic used?
4. What are the goals of Ethereum Classic?
5. What is the difference between Ethereum and Ethereum Classic?
6. What are the limitations of the Ethereum Classic?
7. What is the future of Ethereum Classic?

Origin of Ethereum Classic

• Slock.it, a German business, created "The DAO," a Decentralized Autonomous Organization or DAO initiative on Ethereum, in 2016.
• While the project earned over $150 million through crowdfunding, hackers took advantage of a flaw in its smart contract and stole $50 million.
• Most Ethereum users, including creators Vitalik Buterin and Gavin Wood, favored a hard fork, or a major modification in the blockchain's underlying protocol, to recover the assets resulting in the formation of the new Ethereum chain.
• However, certain members of the community opposed the fork, preferring to follow the principle of "Code is Law" and remained on the old chain, renaming it Ethereum Classic.

They commonly referred to Ethereum Classic as the "original" Ethereum coin since it preserves the ancient code of the Ethereum blockchain as it existed before the DAO assault.

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What is Ethereum Classic?

• Ethereum Classic is a blockchain-based, open-source, decentralized, distributed cryptocurrency platform that runs smart contracts.
• It split the original Ethereum blockchain into two parts, with Ethereum Classic being the older of the two, and Ethereum is the newer one.
• Ethereum Classic is a decentralized governance platform that leverages smart contracts embedded within a distributed ledger or blockchain network.
• Smart Contracts are self-executing autonomous digital applications, based on the principle of “Code is Law,” which can run on their own as programmed. An example would be an ATM (Automatic Teller Machines).

Uses of Ethereum Classic

• The ETC or Ethereum Classic asset is primarily used to pay for decentralized computations on the Ethereum network.
• ETC used to pay for executing transactions and smart contract functions on the Ethereum Blockchain. This is referred to as gas, and the fee associated with these actions are known as GAS costs.

• ETC is also a native token with a monetary policy that creates a predictable, disinflationary emission schedule with a fixed market supply cap.

Goals of Ethereum Classic

The Ethereum Classic project has seen several modifications and additions since the split.

• The project's purpose is to develop a global payment network based on smart contracts that can operate with no centralized authority.
• Ethereum Classic, like other cryptocurrencies, will most likely aspire to be a digital store of value, meaning you can save and exchange it while maintaining its worth.

A crypto's digital store of value includes its purchasing power, which may be swiftly converted to cash or used to purchase another asset, just like money.

Difference Between Ethereum and Ethereum Classic

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Limitations of Ethereum Classic

Although both Ethereum and Ethereum Classic enable smart contracts and target the same market, Ethereum has grown in popularity as the more trustworthy of the two networks.

• Despite numerous software upgrades, the scalability of Ethereum Classic's payment mechanisms remains one of the project's largest concerns in the future.
• Furthermore, security is likely to be an issue with smart contracts, especially because Ethereum Classic has already been hacked and millions of dollars stolen.

Future of Ethereum Classic

Because Ethereum is considered the more authentic of the two networks, Ethereum Classic's future appears to be less bright than Ethereum's, especially given Ethereum Classic's security concerns.

Ethereum Classic may have difficulties until it can modify its code, and software to prevent future hacks.

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Conclusion

In this tutorial, you came across everything about Ethereum Classic and its concepts like What Ethereum Classic is, How it Originated, uses of Ethereum Classic and how it differs from Ethereum, and what its limitations are.

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