Ethereum Classic (ETC) is a crypto platform for distributed applications (dapps). If you think of the second largest cryptocurrency Ethereum (ETH) when you hear that name, you’re not wrong. Both coins share a common history. However, in May/June 2016, their paths diverged. We will tell you everything that you should know about Ethereum Classic.
How is ETC different from Bitcoin?
Like Bitcoin and many other cryptocurrencies, Ethereum (ETH) and Ethereum Classic (ETC) are based on blockchain technology. Unlike Bitcoin, Ethereum and Ethereum Classic are not classic cryptocurrencies but rather platforms for executing so-called smart contracts. Much more is possible with them than just creating an altcoin.
Smart contracts can be used for digital voting systems, identity management, crowdfunding or virtual organizational structures. Both Ethereum and Ethereum Classic are decentralized systems with a peer-to-peer network used to exchange data and verify smart contracts. Ethereum blockchain technology is seen as a shining example of how blockchain and smart contracts can change our future.
Ethereum and Ethereum Classic: How did the separation happen?
To understand the history of Ethereum Classic, one must also deal with the history of Ethereum. The concept of Ethereum was described by Vitalik Buterin and Gavin Wood in 2013 and 2014. Read more about all the members of the Ethereum co-founding team. After they brought in Jeffrey Wilke as chief developer, Ethereum launched its own decentralized blockchain in mid-2015. The crowdfunding campaign raised $150 million, and in just seven months Ethereum reached a market capitalization of $500 million. Two weeks later, the value doubled to $1 billion.
In 2016, Ethereum’s success story came to an abrupt halt. In a hacker attack, unknown individuals were able to steal €65 million worth of ETH. This attack resulted in a community vote on the future of Ethereum. 90 percent voted to shut down the old blockchain and create an entirely new one. This new blockchain was significantly more secure than the old one.
However, the 10 percent who voted against the new blockchain did not want to be defeated by the majority and decided to keep the old blockchain. Thus was born Ethereum Classic, a platform that shared an origin story only with the original Ethereum.
However, there was a problem for Ethereum Classic, which is that most of the cryptocurrency community remained loyal to ETH, i.e. the new blockchain.
The future of Ethereum Classic
The operators of Ethereum Classic believe in the original idea of Ethereum and want to introduce important innovations in the future. They also rule out the possibility of another hacker attack like the one in 2016.
In the future, Ethereum Classic should become even more decentralized, and transactions behind closed doors will become impossible. This is to prevent corruption, inefficiency, and stagnation.
Ethereum Classic currently lacks outside investors. However, the platform already has a significant market capitalization with an upward trend.
Ethereum Classic (ETC) in numbers (as of 30.05.2022)
Market capitalization: $3.2 billion
Trading volume (24 hours): $387 million
Token in circulation: 135 million ETCs
ETC token price history
Ethereum Classic started at about 90 cents per token after the Ethereum split. In June 2017, the price rose sharply to more than $22. During the crypto frenzy, the price temporarily rose to over $45 in late 2017/early 2018. For the next two years until the end of 2020, the cryptocurrency was in a so-called flat.
But at the beginning of 2021, the price of ETC began to grow little by little, and by mid-May, having experienced the strongest impulse, it reached its high of $134. This was a historical peak of Ethereum Classic. Several times the price tried to gain such a growth rate in order to reach and overcome 134$, but alas, now we see that every attempt was just a price correction.
However, do not underestimate Ethereum Classic. News about Ethereum’s move to Proof of Stake protocol makes analysts sure that ETCs definitely have a future, because Ethereum Classic blockchain will be the best alternative for the freed capacities of ETH miners.
And now, when the cryptocurrency market is under the bears’ power, it is probably the best time to thoroughly buy the cheaper cryptocurrency, which will surely grow.