Ethereum Classic (ETC) is one of two main “Ethereum” coins on the market. It is the original Ethereum blockchain, which is used to develop decentralized applications (dapps) and smart contracts.
What Is Ethereum Classic
The inner workings and purpose of the Ethereum Classic platform and its coin are closely related to its shared history with Ethereum that lasted until 2016. After the hacking incident in 2016, one part of the developers decided that the platform should undergo a hard fork to mitigate the damage. The other part opposed changing the original blockchain and stood by the existing platform that they subsequently named Ethereum Classic.
The original incident is linked to the Decentralized Autonomous Organization (DAO) which the original Ethereum used. The purpose of this organization was to make sure that the network and its decision-making system remain decentralized. It was breached by a hacker who stole about 3.6 million ether (approximately USD 50 million US dollars) as the cryptocurrency needed to use the Ethereum platform and its products.
Most of the original Ethereum developers opted for the hard fork, but those who chose Ethereum Classic claim that the platform basically offers the same functionality when it comes to the development of smart contracts and dapps on it. Smart contracts are run on the platform’s Sputnik Virtual Machine, while dapps are designed with the help of the Emerald Software Developer Kit. The nodes which process transactions related to smart contracts are paid in ETC. The network still uses the Proof-of-Work protocol and has no plans to change it, unlike the Ethereum which plans to move to the Proof-of-Stake consensus algorithm. In addition to Ethereum, Ethereum Classic is in direct competition with the platforms such as NEO, Qtum and Lisk which are also focused on smart contracts and dapps.
The software Geth is used to run the nodes on the Ethereum Classic network, as well as handle accounts, transactions and mining. Thanks to its shorter block times, the transaction fees with ETC are low.
Ethereum Classic ETC Coins
The number of ETC coins is capped at 210 million, with 105,730,255 ETC in circulation as of November 2018. Their coin’s market cap in the same period stands at USD 956.4 million, down from its all-time high of about USD 4 billion in late 2017.
The coins are available for trading on major cryptocurrency exchanges such as Poloniex and Kraken, as well as on peer-to-peer platforms.