General Finance

All You Need to Know About the Ethereum Classic

There has been so much publicity surrounding the Ethereum network and all of its uses and applications – especially regarding the creation of smart contracts and decentralized applications. However, only a few people seem to know that the Ethereum network is a hard-fork version of an original blockchain: Ethereum Classic. This means that Ethereum Classic is the proprietary protocol and originator of the basic code algorithm for Ethereum.

In 2016, developers on the Ethereum network considered the benefits of creating a decentralized and autonomous organization (DAO), which was subsequently implemented. However, the organization’s algorithm framework was not well-set, thus allowing loopholes that were capitalized on by hackers. Consequently, millions of Ether were potentially lost and the blockchain developers were left with salvaging option of creating a hard fork. While Ethereum was designed to prevent ultimate loss of funds, other stakeholders decided that they would rather stick to the initial network – which is now the Ethereum Classic.

What is Ethereum Classic?

Ethereum Classic is one of the first cryptocurrency blockchains to hit the cryptocurrency arena, just after Bitcoin. It was released in July 2015 and has still continued to maintain its relevance on the decentralized technology sphere. Currently, Ethereum Classic is one of the few digital currencies that conveniently has a market capitalization of over a billion US dollars. This means its popularity and preference amongst cryptocurrency users is undeniable. It even ranks within the first 20 virtual currencies out of over a thousand altcoins that are currently available.

Furthermore, one of the features that set Ethereum Classic rising through the ranks is the fact that it was able to bring some added excitement to cryptocurrency use. The Ethereum Classic protocol (Ticker: ETC) is noted for making ingenious smart contracts that create provisions. This feature has made it possible for several businesses to incorporate the advantages of the blockchain technology to their everyday activities. This allows the network to be regarded as an eye-opener to the several other uses of blockchain technology apart from payment alone, as shown by Bitcoin.

Stakeholders on the ETC network can also carry out mining activities for transaction confirmations on the network. Since the mining operation is based on the Dagger Hashimoto algorithm format, miners are able to mine the tokens using NVIDIA or AMD GPUs.

Future Events and Prospects of the ETC Blockchain

Although the Ethereum classic network is not as popular as its younger Ethereum hard-forked version, the platform is still very much vibrant and shows real prospects for the future.

Its development team is looking to implement some changes shortly, all in a bid to jerk up the network’s relevance and effectiveness.

For instance, the blockchain mining activities may soon move operations towards the use of a new consensus algorithm. Before this plan is executed, the network is also considering the possibility of stepping down on its mining difficulty requirement tendencies.

The major projects currently being embarked upon by the network developers are focused on fixing features that would bring out the peculiarities of the platform. This is also a way of differentiating ETC substantially from other popular Ethereum.

Bottom Line

Overall, an assessment of the Ethereum Classic network shows it as a cryptocurrency structure that is adequately rooted and will continue to exist for as long as the virtual currency system stays viable. If you would like to learn more about cryptocurrencies, I would check out this book Blockchain Technology Explained by Alan T. Norman. If you would like to become a stakeholder in Ethereum Classic, I recommend going through a secure cryptocurrency wallet like Coinbase.

 

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