fbpx
Opinions

Understanding Ethereum Classic & The Challenges Its Facing

Anyone who is familiar with the digital currency must be having an opinion about the Ethereum and Ethereum Classic. This is both on the ethical and ideological battle of these two currencies. When you take a quick look at the spreadsheet of the Crypto world, you will realize that there are two diverse types of Ethereum;

  1. one being the ETH (Ethereum) and
  2. the other being ETC (Ethereum Classic)

Many people always think that Ethereum Classic is a whole new cryptocurrency. What they should know is, the ETC is just a cryptocurrency that sprung up from Ethereum which was an already existing crypto.

In that case, this article will be aimed at discussing in detail about the history of the Ethereum Classic, background on its founders, advancements, market performance as well as any other information that may be important to enhance your understanding about the ETC.

History of Ethereum Classic

According to the anonymous leading organizer Arvicco, the team of Ethereum Classic has precisely four developers. However, theoretically anyone can always join the team. This is because just like the Ethereum, the Ethereum Classic has open-source community behind it.

By the year May 2016, the Decentralized Autonomous Organization (DAO) had managed to accumulate about $150 million ready to set out on its operations full swing. Later that year, there was a paper that was released regarding the security glitches in the architecture of the DAO.

Just like most of you would do, the developers of the DAO assumed the concerns raised and proceeded with their operations as if nothing was an issue. This was the beginning of all problems. Later that year in June, the Decentralized Autonomous Organization was hacked and about $50 Million were stolen using the same security flaws that had been highlighted earlier that year.

The hack as well as the debate that came up after the same caused a split division between the strongly opposed parties of the Ethereum community. The whole thing was caused by differences in opinion and beliefs between the members. The developers of the Ether could have opted to identify the origin of the already occurred hack-attack then return all coins to their owners but then the key philosophy of this crypto was a limiting factor. This is because transactions can neither be deleted nor edited after being completed.

After the Hack challenge, Ethereum underwent a modification and hard fork phase which was quite a milestone to the blockchain world. This is where the code was copied in effort to alter the main code in order to revert the hack of the DAO. All in all, the code remained as it was for some time. Later, the community involved modified the name too and began referring to it as the Ethereum Classic. They petitioned this as a democratic decision that was basically aimed at safeguarding the funds.

Since that time, the ETH and ETC have been operating as two diverse coins in the crypto market. They share a common background but each has its visions and goals. The main aim is to become the first decentralized platform for computing around the world.

Understanding Ethereum Classic

As discussed earlier, Ethereum Classic is an open source blockchain technology based computing platform which works with the peer-peer strategy. It provides an altcoin or rather token just like the Ethereum but this one is called Classic Ether. This altcoin, is used to make payments for products and services the specific users buy. More to that, it is still used as a transaction fee when the users are transacting using certain smart contracts and decentralized apps. In that case, their blockchain is completely unchangeable and the chances of alteration are zero.

The people who were not in for the hard fork decided to capitalize on the old chain which they renamed it to Ethereum Classic. Here the people who did not settle for the hard fork could not get the chance to either interact or get access to the upgraded version of new blockchain system.

As much as all the Big-wigs of Ethereum moved to the new chain, Ethereum, some people still remained at the old one. This was kind of unusual but whatever the action; it was reasoned out philosophical one. The main reason why Ethereum was introduced in the first place was to make the whole system immutable to any kind of human influence.

In that case, if everyone would have moved on to the new chain just because of one human attack that would have made Ethereum lose its purpose. That would have shown that human whims have the capability of attacking that blockchain.

Ethereum Classic Wallets

The Ethereum Classic is compatible with other Cryptocurrencies like Bitcoin and Ethereum in terms of trading. Under certain platforms like the Bittrex and Poloniex you can trade the ETC successfully. In other cases, you may opt to buy it directly in US dollars.

There are also wallets that support the ETC transactions like the Jaxx which is a mobile app or the hardware wallet known as Ledger Nano S which provides ultimate security to its users. You may consider the Emarld Wallet in the future too, but it’s still ‘work in progress’

The Ethereum Classic sounds promising but still there are a few problems that it faces in the Cryptocurrency market.

Challenges of the Ethereum Classic

The main issues affecting Ethereum Classic today is that all the heavy hitters of Ethereum founding community moved to the new chain. This is quite a disadvantage to the Ethereum Classic because anyone who is part of the ETC has no access to the new updates made on the ETH. For instance, ETH has made a leap from the POW (Proof of Work) to a new upgrade POS (Proof of Stake).The ETC will not be able to keep up with such because their software does not support updates.

The future and strength of Ethereum Classic will only be determined by time. As much as the current state of this crypto dictates that it is might be here to stay, predicting its future is a little hard in this unstable market of Cryptocurrencies.

Tags

Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Email: editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close