Review on Ethereum Classic by Kenan Chalabi

Ethereum Classic Review:

ETC Coin:

The Ethereum Foundation has decided to apply a hard fork to get the stolen ethers back. Some in the Ethereum community stated that this decision would not be in line with the underlying thinking of Ethereum. Because the hard fork decision meant ignoring a part of the foundation and bringing the foundation's decisions to the fore, according to those who opposed the foundation. The Ethereum Classic developers decided to come together to create an uncensored and truly decentralized platform. Ethereum Classic comments are made by the community that the consensus should be 100% if the code is to be changed. There are many wallet applications and decentralized applications (dApps) on the ETC Blockchain.

ETC Price

Looking at the ETC/USD parity, a price close to $45 is seen in January 2018, this price was recorded as an all-time record. As of the date of the article's update, 1 ETC is trading at $6.35. Its market cap, i.e. Ethereum Classic market cap is $738 million, and it ranks 19th in the ETC cryptocurrency ranking.

Who Are the Founders of Ethereum Classic?

Since Ethereum Classic is the legacy chain of Ethereum, its original founders are the original Ethereum developers Vitalik Buterin and Gavin Wood. A contentious hard fork occurred on Ethereum in July 2016, when participants could not agree on whether to retake the blockchain to cancel the effects of a major attack. This has impacted the DAO, the decentralized autonomous organization that raised approximately $150 million in its initial coin offering a few months ago.

What Makes Ethereum Classic Unique?

The main purpose of Ethereum Classic is to preserve the Ethereum blockchain in its original form without artificially countering the DAO (Decentralized Autonomous Organization) hack. Ethereum Classic first gained attention because it was known to be associated with Ethereum's response to those who disagreed, but Ethereum has since gained a wider fan base that includes big investors such as Barry Silbert, CEO of investment firm Grayscale.

As a voluntary organization, the developers of ETC do not intend to turn the network into a for-profit entity. Users pay transaction fees, as in Ethereum, and miners collect them based on the work done based on the Proof of Work mining algorithm. Unlike Ethereum, Ethereum Classic has no plans to evolve into a Proof of Share mining algorithm, while multiple developers are still working on future improvements such as scaling solutions.

Understanding Ethereum Classic

Ethereum Classic facilitates the execution of smart contracts by offering the advantage of decentralized management. In other words, contracts can be executed without a third party such as a lawyer. Smart contracts are likened to if-then statements. More specifically, the responsive contract parameters are completed if the required actions in the smart contract have been fulfilled. If the contract parameters are not met, a penalty, fee or contract may be terminated, depending on the terms set at the beginning of the contract. For example, in a real estate transaction, the contract can be terminated if the contract states that an advance payment is due on a certain date and the funds are not received.

Smart contracts exist on ledgers that are independently maintained and updated by users, or within the blockchain network. These ledgers, which are independently maintained by users, are known as a ledger of transactions and contracts that are maintained and maintained in a decentralized manner in various locations.

The agreement between the buyer and seller is written in lines of code in the self-executing smart contract, depending on the terms in the contract. As a result, there is no need for external monitoring or censorship by a central authority, as contract execution is controlled by codes.

Problems Ethereum Classic Can Create

Although Ethereum and Ethereum Classic offer smart contracts and pursue the same market, Ethereum has gained popularity in the legal sense of the two networks. Also, Ethereum (ETH) ranks second after Bitcoin as the most popular cryptocurrency in the world.

The Future of Ethereum Classic

The future place of Ethereum Classic looks less bright than Ethereum, because Ethereum is considered the more legit of the two networks, especially because of the security issues Ethereum Classic may pose. Investors have lost confidence in ETC over the years due to attacks on the system, so there will likely remain challenges ahead for Ethereum Classic until ETC re-develops its code and software to prevent future attacks. However, it is not yet clear how smart contracts will be developed within the Ethereum Classic project and whether they can be accepted for widespread use.

What is the Difference Between Ethereum Classic and Ethereum?

While Ethereum Classic (ETC) has some value as a speculative digital asset that investors can trade, Ethereum (ETH) is considered more legal and widely traded. In early 2021, the Chicago Mercantile Exchange approved trading of Ether futures. Only Bitcoin and Ether are approved for such transactions. Futures are known as derivative contracts on an underlying security that has a fixed price and maturity date. Ether futures allow traders to trade Ether for speculation, as well as to hedge an outlier in ETH or other cryptos.

By analyzing how much capital or investment dollars are committed to two different currencies, it can be determined how the investment community's perspective is towards ETC versus ETH. When comparing the two market capitalizations of two cryptos, it is a known fact that ETH will win. The market value of a cryptocurrency is calculated by multiplying the price of the currency (based on a price currency such as the US dollar) by the coins or tokens that are in circulation. At this point, ETC has 116.3 million coins in circulation with a market cap of $3.9 billion, while ETH has approximately 115.6 million in circulation and a market capitalization of more than $304.9 billion. ETC is trading at $33.65, while ETH is trading at more than $2,600 per coin as of April 27, 2021.

Although both networks offer smart contracts, the potential of the aforementioned potential security issues surrounding ETC will force investors to invest in ETH and adopt Ethereum's smart contracts compared to Etherum's Classic.