As a token generally viewed as a proxy of Ethereum (ETH) itself, Ethereum Classic (ETC) has witnessed a surge in interest. Vitalik Buterin initially developed it as software to enable developers to create new tokens and DApps that would run on the blockchain network. The name and logo are similar for the renowned Ethereum, so many assume it’s the same thing, not giving it a second thought. Ethereum dictates the way Ethereum Classic performs on any given day. Because of the lack of tokens, Ethereum Classic is regarded as a better and more valuable store. If you’re thinking about investing, it’s a good idea to understand the differences between Ethereum and Ethereum Classic.
Ethereum Classic Was Produced by A Fork of The Original Blockchain
In July 2016, the Ethereum network was split into two blockchains: to rescue affected investors, namely Ethereum and Ethereum Classic. The newer network was simply called Ethereum. Ethereum Classic is the original, smaller blockchain. It goes without saying that the decision to fork the blockchain caused division in the community, with some people remaining loyal to the original blockchain. Although the two platforms share a common past, they have two separate cryptocurrencies. Ethereum Classic’s native Ether token can be traded for assets, commodities, currency, products, and services.
One of the most successful ICOs, the decentralized autonomous organization (DAO), amassed more than 11 million ETH before malicious actors identified a smart contract bug allowing them to withdraw some of the funds. Programmers struggled to fix the bug, but it was already too late. Vitalik Buterin decided to create a hard fork to address security challenges, and the blockchain that resulted, Ethereum, used proof-of-work to run smart contracts. Ethereum now uses proof-of-stake. Looking back, it’s clear that Vitalik Buterin’s decision ensured the survival of the blockchain. Since the famous DAO hack, no such event was ever recorded.
To Hold Ethereum Classic, You Need a Compatible Wallet
The main reason why investors purchase Ethereum Classic is infinitesimal transaction fees, which maximizes the amount of profit from selling their tokens. As mentioned earlier, the value of ETC is closely linked to the ETH price, so it seems like it’s destined to live in the shadow of Ether itself. It’s recommended to buy Ethereum Classic and hold it for an extended period of time as its value might increase. You can’t use just any wallet for ETC, but a reliable wallet that’s compatible with different operating systems, has an easy-to-use interface, and allows full control over the private keys.
Wallets come in all shapes, such as physical appliances, software programs, and services that hold your keys. You can access the balance on the public key via your wallet’s private key, which is used to create digital signatures that can be easily verified. Secure your tokens with the most secure wallet. You can manage your Ethereum Classic on a desktop or mobile application, meaning you can check your balance in real-time, send and receive cryptocurrency, and trade other assets. Needless to say, you should never access your wallet from a public or work computer. As a matter of fact, you should have a separate device for your tokens, such as a smartphone or laptop.
Does Ethereum Classic Have a Maximum Supply?
When researching Ethereum Classic, you might see figures relating to the total supply of the asset. While Ethereum has an uncapped total supply with a fixed total supply per year, Ethereum Classic has a total supply cap of 210 million ETC. The reason for this is that the block reward has been reduced by 20 percent at the 5 million block number and 20 percent at every 5 millionths. Investing in cryptocurrency requires due diligence that starts with research. In case you didn’t already know, the more tokens are added to circulation, the more value decreases. Make sure the project you’re invested in doesn’t have less than 50 percent of the supply in circulation.
Bitcoin Cash Vs Ethereum Classic
Bitcoin and Ethereum are the reigning cryptocurrencies, yet the sector leaders are occasionally challenged by competitor networks. Bitcoin Cash and Ethereum Classic are generating excitement. The question now is: Are they worth holding in your portfolio? Bitcoin Cash was created in August 2017 in a hard-fork blockchain split, and the only difference between Bitcoin Cash and Bitcoin is that the former enables larger blocks in the network, so more transactions can be processed per second. Users are able to complete fast payments at low fees owing to the peer-to-peer electronic cash system.
As more participants break into the cryptocurrency market, these two legacy coins will continue to be relevant. As compared to top altcoins, Bitcoin Cash and Ethereum Classic produce lower returns on the investment and see lower trade volumes. The trading volume matters because it’s an indicator of the level of activity associated with an asset. In the past couple of years, there have been some ecosystem-centric developments as far as Ethereum Classic is concerned. That’s not the case for Bitcoin Cash, unfortunately. The altcoins have been in the market for such a long time now, so it’s safe to say they won’t disappear anytime soon.
In all likelihood, Ethereum Classic will continue to be a digital store of value, which translates into the fact that it can be saved and exchanged without losing its value. The value of ETC lies in its community since it’s a platform that allows projects to be built. No one controls or owns Ethereum Classic, so it’s an open-source project. The developers of Ethereum have moved away from the proof-of-work system to the more prevailing proof-of-stake. On the other hand, Ethereum Classic sticks with mining, which comes with hardware expenses.
For a long time, Ethereum Classic was overlooked, but this isn’t the case any longer. ETC can be purchased, sold, and traded on specialized exchanges, having functions similar to ETH. To compete with Ethereum and other digital assets, Ethereum Classic needs to be ameliorated; in other words, it needs some technical wrap-ups.