Understanding the Concept of Ethereum Classic
- Introduction to Ethereum Classic
- Origin Story
- Ethereum vs. Ethereum Classic
- Is It Safe to Invest in Ethereum Classic?
Introduction to Ethereum Classic
Ethereum Classic is a cryptocurrency and a computing platform, which is a direct identical twin of the Ethereum Blockchain. Ethereum classic is most commonly used for the creation of smart contracts, by developers.
The crypto token of Ethereum classic is also known as Ether, the only difference being their symbols. Where Ethereum uses ETH, Ethereum classic uses ETC. ETC can be used on Ethereum classic blockchain as payment to facilitate transactions.
In 2016, a German startup organization started a project on Ethereum blockchain known as Decentralized Autonomous Organization (DAO). It is a project that will implicate the use of smart contracts to execute transactions without any interference of humans or manipulation.
2016, was also the year that witnessed major hacks in crypto, even Ethereum was a victim of one of these hacks. Attackers found a vulnerability in smart contracts and used it to steal $50 million. This hack baffled the entire Ethereum community and the creators started looking for a method through which they could reverse the clock. This led to Ethereum splitting in two; Ethereum and Ethereum classic.
A hard fork for the original Ethereum blockchain was created by developers, creating the current Ethereum Blockchain.
The split divided the Ethereum community into two, some didn’t like any human manipulation in the Ethereum blockchain. Whereas, some who were victims of the hack, showed complete support for the modification, to reverse their loss.
The Ethereum loyalist, stick to the older version of the blockchain and renamed it Ethereum classic.
Ethereum vs. Ethereum Classic
Ethereum Classic doesn’t have any updates, of Ethereum. In the Ethereum classic, there are no revised developments, that have been made on the Ethereum blockchain, including Ethereum 2.0. Ethereum classic is programmed with the original model.
Ethereum classic is a ledger, containing all records, also that of the hack, in 2016. In Ethereum there is no record of the hack.
Is It Safe to Invest in Ethereum Classic?
At present, it is hard to tell if Ethereum classic is a good investment or not. With problems that Ethereum is facing, the future of Ethereum classic appears to pose scalability and reliability issues, meaning there are doubts about Ethereum classic and it doesn’t look as promising as Ethereum.
Ethereum Classic also has certain security concerns as it has been hacked again and again at a rate of 51% making it very risky.
Despite all these concerns, the prices of Ethereum classic token has not been much affected. This only indicates that investors are only focusing on short-term price dynamics and have no interest in fundamental structure or long-term security.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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