What is Ethereum Classic?
Ethereum classic is the original Ethereum blockchain, which was forked to create the mainstream Ethereum we know and use today. It uses a proof of work consensus mechanism just like Bitcoin but has smart contract functionalities. This means it can be used to execute and enforce the terms of a contract without needing any third-party intermediaries. Smart contracts are simply pieces of software that are self-executing and can store, transfer and manage digital assets without any manual interference.
Ethereum Classic is the perfect platform for dApps because it’s secure and decentralized. The transactions are tracked on a public ledger and cannot be reversed or tampered with. However, ETC is much more than just an altcoin, as it has its own virtual machine (EVM) and programming language (Solidity). This allows developers to build decentralized applications on top of the Ethereum Classic platform, making it a powerful tool for businesses. The network also supports sidechains, allowing users to move their ETC tokens off the main chain.
Who Created Ethereum Classic?
Ethereum classic was created in 2016 following the infamous DAO hack. The Decentralized Autonomous Organization (DAO) was a smart contract built on the Ethereum blockchain that allowed users to invest in projects and vote on decisions. However, due to its vulnerability to hacking, it was attacked, and funds worth millions of dollars were stolen. To prevent further losses, the developers decided to hard fork the Ethereum blockchain, creating two versions: Ethereum (ETH) and Ethereum Classic (ETC).
The main difference between these two blockchains is their philosophy. While ETH supporters believe in security over immutability and code is not law, ETC supports immutability over security and code is law.
This means that developers on the Ethereum classic platform cannot modify or delete transactions made on the blockchain, even if they are vulnerable to attack. This creates a trustless environment where users can be sure their funds and data will remain safe.
How Does Ethereum Classic Work?
Ethereum classic works just like other blockchains; it’s based on a decentralized system of nodes that process transactions and store information in blocks. When you make a transaction with ETC tokens, it is broadcasted to all the nodes in the network who verify its validity and add it to the blockchain, creating an immutable record of the transaction.
The network is secured using a proof of work consensus mechanism, similar to Bitcoin. This means miners have to compete with each other to solve complex mathematical problems to generate new blocks and receive rewards.
The Ethereum Classic blockchain has a block time of 15 seconds, which is faster than Bitcoin’s 10-minute block time. This means that transactions are processed quickly and efficiently on the network with minimal fees.
How to Buy Ethereum Classic from Bybit?
Bybit is an online cryptocurrency exchange platform that allows users to trade ETC tokens. Buying Ethereum Classic from Bybit is easy and safe; here are the five simple steps you need to follow:
1. Log on to the website and create an account.
The first step is to log on to the Bybit website and sign up for a free account. The process is simple; all you need to do is provide your email address and create a secure password.
Coin-Labs signed an agreement in 2021 to become the official business partner of Bybit.
Therefore, when you sign up for Bybit through the Coin-Labs website, you will be able to experience Korea’s top commission benefits and also become eligible to participate in an event to receive up to $600 in bonuses.
2. Verify your identity and provide KYC details.
Bybit requires users to complete a Know-Your-Customer (KYC) process before they are allowed to trade on the platform. This involves providing proof of identity, such as a passport or driver’s license, and further documents for verification purposes.
3. Sign in to your dashboard and click on ‘buy crypto’
Once you have successfully verified your identity, log in to your dashboard and click on the ‘buy’ tab at the top right hand corner of the page. From here, select Ethereum Classic from the list of cryptocurrencies available.
4. Select how much Ethereum Classic you wish to purchase
Next, choose how many ETC tokens you want to buy and enter the corresponding amount in USD or any other supported currency.
5. Add a payment method and click on ‘buy’
Finally, select your preferred payment method (e.g., credit card or bank transfer) and click on ‘buy’ to complete your transaction. It’s that simple!
Ethereum Classic Comparison
Ethereum Classic and Ethereum are both blockchain-based networks built on the same code. However, there are significant differences between the two.
1. Ethereum Classic vs Ethereum
The main difference between Ethereum and Ethereum Classic is their philosophy. While ETH supporters believe in security over immutability and code is not law, ETC supports immutability over security and code is law.
The market capitalization of ETH is significantly higher than ETC; as of writing this article, ETH has a market cap of over $145 billion compared to ETC’s $2.7 billion. This means that ETH is more widely accepted among traders and investors and its tokens are worth more than ETC’s. This doesn’t come as a surprise since ETH has more developers building on the network, and its blockchain is used for various applications.
Ethereum uses a proof of stake consensus mechanism, while Ethereum Classic uses a proof of work consensus mechanism. This means that miners in the ETH network receive rewards for validating transactions instead of competing to solve complex mathematical problems like a proof of work mechanism requires.
2. Ethereum Classic vs Litecoin
Block time is the average time a new block is added to the blockchain. Litecoin (LTC) is another popular cryptocurrency with a faster block time than Bitcoin but slower than Ethereum Classic. Litecoin has a blocktime of 180 seconds, while Ethereum Classic has a blocktime of 15 seconds. On average, Ethereum Classic also has higher transaction fees than Litecoin, which makes it better suited for larger transactions rather than smaller ones.
Unlike mainstream Ethereum, both Litecoin and Ethereum classic use a proof of work consensus algorithm. This means miners need to solve cryptographic puzzles to generate new blocks and receive rewards. Finally, Litecoin has a market cap of $16.5 billion, significantly higher than Ethereum Classic’s $2.7 billion market cap.
3. Ethereum Classic vs Ripple
Ripple (XRP) is a global payment network built on blockchain technology, and it has several differences compared to Ethereum Classic. Firstly, Ripple does not use a proof of work consensus algorithm like ETC but instead uses its own consensus mechanism called the ripple protocol consensus algorithm.
Ripple was built to facilitate cross-border payments, whereas Ethereum Classic is mainly used for smart contracts and decentralized applications. Finally, Ripple has a higher market capitalization of $16 billion compared to ETC’s $2.7 billion. It is more widely accepted among traders and investors than Ethereum Classic.
| Ethereum Classsic | Litecoin | Ripple | Ethereum | |
| Market Cap | $2.7B | $16.5 | $16B | $145B |
| Block Time | 10-15 seconds | 180 seconds | N/A | 14 seconds |
| Consensus Mechsnism | Proof of work | Proof of work | Riple protocol consensus algorithm | Proof of stake |
| Maximum Supply | 210.7 million | 84 million | 100 billion | Unlimited |
Is Ethereum Classic a Good Investment?
Ethereum Classic has several pros and cons as an investment. On the one hand, it is a decentralized network with no single failure point, making it relatively secure from attacks or hacks. Ethereum Classic also has similar transaction times as Ethereum, which means that transactions can be completed quickly without waiting for miners to process them.
On the other hand, ETC has a much smaller market capitalization than Ethereum, meaning that its tokens are worth less and are not as widely accepted among traders and investors. ETC’s proof of work consensus algorithm also requires more energy than proof of stake algorithms like ETH’s, making it more expensive to run.
At the moment, ETC is trading in a downtrend and below the 100 SMA. This shows the dominance of the bears in the market. However, in the long term, Ethereum Classic could gain value if more developers build applications on its blockchain and institutional investors start to show interest in the project.
Overall, Ethereum Classic is an exciting investment opportunity, but it is important to weigh both the pros and cons before deciding.
Is Ethereum Classic Safe?
Ethereum Classic is generally considered safe to use as long as users protect their private keys and ensure they are not sending tokens to a malicious address. Ethereum Classic also has several security measures, such as a replay protection mechanism that prevents transactions from one chain from being duplicated on another chain.
However, ETC does have some security vulnerabilities, such as the “51% attack”, in which an attacker can control more than half of the network’s hashing power and potentially manipulate or reverse transactions. This attack is improbable since ETC has less hashing power than ETH, but it is still essential to be aware of the risks.
Conclusion
Ethereum Classic is a decentralized network and cryptocurrency designed to facilitate smart contracts and decentralized applications. It is a relatively popular investment opportunity with unique advantages, such as faster transaction times and a more secure consensus algorithm. With its growing acceptance among traders and investors, Ethereum Classic is an exciting project that could potentially revolutionize how we interact with blockchain technology.
