Ethereum Classic [ETC]: A Step by Step Buying Guide
Ethereum Classic [ETC] can appear to be one of the most confusing digital currencies to new crypto investors. Many ask why there are two Ethereums, whether they are the same, which coin has a future and more. Here, in today’s guide you can find all the answers to your questions regarding Ethereum Classic [ETC].
It all started with the buzz of Bitcoin way back in 2009. Then, Ethereum, Ripple, Dash, Litecoin and plenty more joined the party. With nearly 1600 digital currencies listed on CoinMarketCap.com, it’s no wonder that newcomers are left feeling pretty confused. Which ones to buy, which coins to trade, what makes a worthy investment, the questions are aplenty.
Before, you take a look at ETC, let’s start from the beginning. Let’s look at the situations that led to the creation of Ethereum Classic.
Ethereum Vs Ethereum Classic: What’s the Difference?
First, there was Ethereum [ETH]
Ethereum is the brainchild of famous Russian programmer, Vitalik Buterin. He’s the founder of the Bitcoin Magazine and one of the early adopters of the digital currency. In 2013, he introduced Ethereum to carry out functionalities that Bitcoin couldn’t do.
From the very beginning, Ethereum [ETH] was designed to be more than a digital currency. It was aimed to be a platform where programmers could create, run and execute smart contracts and dApps (Distributed Apps).
Then, the Notorious DAO Attack Happened
Two years after the introduction of Ethereum, the community launched the Decentralized Autonomous Organization aka the DAO. The DAO aimed to act as a decentralized venture capital to fund decentralized crypto projects. The vision of the DAO was that it would have no central board of directors or employees. Instead, the key investors will hold key positions.
In May 2016, the DAO managed to raise $150 million through a crowdfunding sale. This is the second largest crowdfunding sale till date. Shortly after the sale, hackers exploited a flaw in the DAO’s code and managed to drain out nearly $50 million of the funds.
This created a major upheaval among the members of the DAO, the Ethereum community and the rest of the crypto-world.
The DAO Hard Fork
Ethereum’s prices plummeted as soon as the news of the attack spread and Ethereum suffered a major public whiplash. Even though the attack happened at DAO and not at Ethereum, the digital currency had to face the music. This caused the majority of the Ethereum community to decide on a hard fork.
What’s a Hard Fork?
It’s is a divergence or split in a blockchain. It occurs when most of the community members decide that they no longer want to follow the protocols used by the blockchain. Essentially, a hard fork creates a new and updated version of the blockchain.
A hard fork was executed on the Ethereum blockchain at Block number 192000. This made all the hacked transactions invalid and the lost amounts were refunded to DAO investors. Thus, because of the hard fork, a new version of the Ethereum blockchain was created.
Ethereum Classic [ETC]: Everything Beginners Need to Know
While a majority of the members of the Ethereum community supported the hard fork, a small minority was against it. They continued to remain on the old blockchain and named themselves as Ethereum Classic [ETC].
The blockchain of ETC is similar to the original Ethereum, that is the one before the hard fork was created. ETC is a decentralized program just like ETH. And, just like ETH, you can trade ETC on several crypto exchanges, use it to create smart contracts, and dApps. In fact, ETC uses the same smart contracts language used by ETH, the Solidity.
Why was Ethereum Classic [ETC] Created?
After the DAO attack, the Ethereum community was divided into two major groups:
Group 1 – Members who wanted to abide by the notion, “Code is law.” Here are their arguments:
Things that happen on the blockchain are immutable and shouldn’t be reversed under any condition, regardless of the outcome.
They believe that reversing transactions is a slippery slope and once done for a particular situation means you open the chances of doing it for others.
They were of the opinion that reversing is a bailout.
Group 1 – Members who wanted to refund the DAO attack and get back the lost money.
They believe the notion of “Code is law” is too restrictive and members of the community should have the final say via social consensus.
The hacker (s) could not be allowed to profit from the exploit as it is morally unethical.
They believe that leaving such a large sum of Ethers in the hands of the hacker as it may lead to disastrous consequences down the line.
They refute the slippery slope argument saying that past decisions do not bind the community and the members can be trusted to act reasonably and rationally in all situations.
They believe that it isn’t a bailout since money is not taken from community members. Instead, it’s just returned to investors.
They argued that if the community doesn’t take any action now, it will encourage future hackers to use the Ethereum platform for malicious attacks.
A hard fork would serve to keep the regulatory authorities and other legal organizations out of the way.
They believe that it’s our mess and we should be the ones fixing it.
Members of the first group did not support the hard fork and continued mining on the old version of the blockchain. They chose to ignore the upgrade of the blockchain.
Thus, the first group which uses the original version of the Ethereum blockchain created Ethereum Classic (ETC).
The Team behind Ethereum Classic [ETC]
Not much is known about the team behind ETC as they remain hidden behind pseudonyms. The Ethereum Classic [ETC] community is far smaller and less renowned when compared to Ethereum [ETH].
Here are some notable players in the team:
@bitnovosti – Coordinator, Ideology
@whatisgravity – Developer Core and Protocol
Igor Artamonov – Developer Core and Protocol
Artyom Abaev – Product Manager and Coordinator
Vasiliy Vyabornov - Engineer
Sergey Ponomarev – Smart Contracts Developer
Ethereum Classic Overview
Current Price - $15.69 USD
Market Cap - $1,611,550,551 USD
Trading Volume (24h) - $220, 563, 000 USD
Circulating Supply – 102,719,155 ETC
Peak Price - USD 45.51 on 14th Jan 2018
Just like Ethereum there is no upper cap on the total supply of Ethereum Classic.
How to Buy Ethereum Classic [ETC]
Buying Ethereum classic directly using fiat currencies is a bit difficult. But, you can trade other coins like ETH, BTC or LTC for ETC at various exchanges. First convert your fiat currency into any one of the above-mentioned cryptocurrencies. Then, exchange it for ETC at any one of the following crypto-exchanges.
How to Store Ethereum Classic [ETC]?
There are several options to store your stash of ETC. Here are a few of the popular options:
Hardware wallets – Ledger Nano S, Trezor
Mobile Wallets – Jaxx (available for both iOS and Android)
Desktop Wallets – Mist and Jazz (both are available for Mac OS, Windows, Linux)
Web Wallets – Classic Ether Wallet
Or Paper Wallets – Ether Classic Wallet
Popular Projects offered by Ethereum Classic [ETC]
There’s no denying the fact that Ethereum is still the unrivaled king of the world of Smart Contracts and dApps. And, with the formation of the EEA (Enterprise Ethereum Alliance) and other latest updates in the crypto-space, Ethereum has grown to become stronger.
Yet, Ethereum Classic is not far behind. Since, Ethereum Classic offers all the features of Ethereum, it’s still considered one of the top cryptocurrencies on the market and right ranks 15.
Some of the notable projects and ICOs (Initial Coin Offerings) on the Ethereum Classic blockchain include:
Projects – BitTicket, InPay, Stamp.io
ICOs – DEX, Corion, Postalgia
Ethereum Classic [ETC] Pros
The coin has remained faithful to the original vision of what a blockchain is supposed to be. What is the point of having an immutable ledger, if it gets changed at some time?
Ethereum Classic has some influential backers like Barry Silbert, the founder and CEO of the Digital Currency Group.
It doesn’t have any prestigious partnerships like the EEA, which is working on building decentralized apps for the blockchain.
The initial Ethereum developers who created the currency in the first place are no longer associated with Ethereum Classic.
What’s the Future of Ethereum Classic [ETC]– Interesting Forecasts Ahead
Ethereum Classic [ETC] saw a massive growth around 1600% in the last year period from July 2016 to July 2017. And, that’s ample profit to ignore. And, there’s no doubt that it’s a competitive coin.
With that said, Ethereum Classic [ETC] has some drawbacks compared to Ethereum like the lack of a visionary leader at the forefront and innovative partnerships like the EEA.
The crypto-market is renowned for its volatility. So, it’s tough to predict whether Ethereum Classic [ETC] will emerge successfully or get left behind.
Image via Medium
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