One of the decentralised, open sources, blockchain-based computing platforms is Ethereum Classic, also known as ETC. This cryptocurrency not only allows developers to deploy and build small contracts but also enables self-executing, autonomous code blocks which can trigger actions according to pre-determined conditions. The Ethereum Classic network does not require any sort of permission which means, anyone can join this blockchain and execute transactions with a compatible cryptocurrency wallet. ETC was officially launched in 2016 because of a technical and ideological split seen within the Ethereum community after the DAO attack.
About Ethereum Classic
In ETC, smart contracts can be enforced even though they do not involve any third party like lawyers. Smart contracts resemble if-then like statements which means if any action in a contract is fulfilled, all its responding parameters can be deemed completed. Likewise, if the parameters have not been completed, a penalty might be imposed in the form of a fee or contract void as per contract terms and conditions.
All the smart contract in ETC is kept within a distributed ledger also known as a blockchain network. The distributed network can be defined as a ledger comprising contracts and transactions that are maintained and kept in a decentralised way in several locations.
Every kind of agreement made between a seller and a buyer is written in the lines of code in the smart contracts that depend on contract terms and remains self-executing. This results in minimal to no use of external monitoring by a central authority as the code controls all the contract related executions.
The Original Ether
Ethereum is a blockchain and open-source cryptocurrency that was made to enable developers to publish and build their smart contracts. They are also allowed to distribute applications that can be used without risking downtime, interference of others and fraud from third parties. In the broader sense, Ethereum is “the world’s programmable blockchain.” The crypto itself distinguishes itself from the world-famous Bitcoin since it is a programable network that serves the entire market for games, financial services and applications. All can be paid in Ether crypto and remains safe from fraudsters, censorship or theft.
What gave birth to Ethereum Classic
DAO project was launched in 2016 by a German start-up named Slock. The project was launched on Ethereum and called ‘The DAO’ which raised $150 million through crowdfunding. Hackers on the other side exploited the loophole in the project smart contract and stole around $50 million. To restore the lost funds, Ethereum users including its founders Vitalik Buterin and Gavin Wood initiated a radical change in Ethereum’s base protocol. This formed the new Ethereum Classic chain, known as ETC.
However, some of the community members opposed changes in base protocol or the fork and supported the core principle of law. This made old chains remain the same but renamed the same as ETC. Since Ethereum Classic has an old code of Ethereum blockchain until the DAO attack, it is also sometimes regarded as the original Ethereum crypto.
Ethereum Classic vs Ethereum
In terms of functionalities, both Ethereum and Ethereum Classic behaves similarly. For example, blockchain developers are allowed to use the open-source code for running and developing their decentralised applications or the dApps. The platforms can also create ERC-20 tokens for applications.
One of the primary differing factors between the both is ETC’s incompatibility with ETH blockchain updates. Since the fork is backward- incompatible it cannot adjust with updates. By applying new rules and codes, the new chain with its users or nodes is cut off from the base blockchain. Therefore, ETC is not able to access or modify according to new updates occurring in the new chain of Ethereum.
Well, why do we even need ETC under such a situation if it is unable to update itself? As mentioned earlier, ETC is more based on ideological principles than other elements. For example, it believes more in preserving the unadulterated and original Ethereum code. This means Ethereum Classic is an unadulterated Ethereum network having its historical records.
Future of Ethereum Classic
Although ETC seems bright for the future, it does not overshine the original Ethereum because Ethereum is more legitimate amongst the two. Particularly, the Ethereum Classic has a few security concerns which lag investors interest in investing more in ETC. Moreover, a few hacks in the ETC systems have made it necessary for its software and its codes to redevelop and prevent system hacks in future.