Ethereum Classic is an older version of the Ethereum network or a founding member of the network. The cryptocurrency market has been volatile, but the project’s passionate fan base has been there the whole time, helping to keep it on course. That’s why, even if there are thousands of other cryptocurrencies out there, Ethereum Classic is still highly regarded.
You’ve come to the right spot if you’re interested in learning more about Ethereum Classic and its development. The following topics will be discussed in this Ethereum Classic tutorial:
What exactly is Ethereum Classic?
The Ethereum Classic blockchain is an open-source, distributed, decentralized, cryptocurrency platform that supports smart contracts.
The original Ethereum blockchain was divided into two separate networks, Ethereum and Ethereum Classic.
Ethereum Classic is a blockchain-based, smart contract-enabled distributed governance platform.
Smart contracts are computer programs that carry out their terms automatically and reliably following predetermined terms and conditions, based on the idea that “Code is Law.” A bank ATM is a good illustration of this (Automatic Teller Machines).
Various Applications of Ethereum Classic
- The Ethereum Classic (ETC) token is primarily used to pay for sharding fees on the Ethereum network.
- Transaction fees and the costs associated with running smart contracts on the Ethereum network were previously settled in ETC. All of this is referred to as gas, and the money spent on it is called GAS.
- In addition to being a native token, ETC has a monetary policy that establishes a regular, deflationary emission schedule and a finite market supply cap; the cost of these operations is denoted by the acronym GAS.
Motives of Ethereum Classic
Since the splitting, the Ethereum Classic project has undergone several updates and enhancements.
- The goal of the project is to create a decentralized, worldwide payment system based on smart contracts.
- Like other cryptocurrencies, Ethereum Classic will likely aim to serve as a digital store of value, meaning its value can be stored, traded, and spent indefinitely without depreciation.
The purchasing power of a cryptocurrency is a digital store of value that can be quickly converted to cash or used to buy another asset.
Ethereum Classic’s Future
As the more established network, Ethereum has a brighter future than Ethereum Classic, which is especially concerning in light of Ethereum Classic’s security issues.
Ethereum Classic may run into trouble until the project’s developers update the coding and software to make it more secure from future attacks.
The Limitations of Ethereum Classic
Ethereum and Ethereum Classic both support smart contracts and aim to serve the same market, but the former has gained traction due to its reputation as a more reliable platform.
- There have been many improvements to the underlying code, but the future of Ethereum Classic is still uncertain due to concerns about the scalability of its payment systems.
- The fact that Ethereum Classic has already been hacked and millions of dollars taken indicates that smart contracts may have security issues.
In this guide, you learned everything there is to know about Ethereum Classic, including its definition, history, potential applications, and limitations.