Key Highlighting points about ETC crypto:
- Ethereum Classic also known as ETC crypto is a distributed cryptocurrency platform that executes smart contracts which is open-source, decentralized, and blockchain-based.
- ETC is a decentralized governance platform that leverages smart contracts embedded within a distributed ledger or blockchain network.
- As a result of a hack, ETC was produced as a split variant of Ethereum’s Blockchain. The newer variant developed was named Ethereum, while the older variant was named Ethereum Classic.
- Ethereum Classic does not have an official development team. Although there are a number of unofficial groups striving to improve the blockchain.
- NOWPayments, a payment gateway, recently accepted ETC, and the launch of NFTs on the ETC blockchain is in the works.
1. A brief Introduction: Ethereum Classic (ETC crypto)
ETC is a distributed cryptocurrency network that executes smart contracts which is open-source, decentralized & blockchain-based. Ethereum Classic was created because the network got hacked in 2016. The original Ethereum blockchain was split into 2 parts, with Ethereum Classic being the older of the two & Ethereum being the newer.
2. So, what is Ethereum Classic (ETC crypto)?
Ethereum Classic makes it easier to run smart contracts by allowing for decentralized governance. In other words, contracts can be enforced without the involvement of a third party, like a lawyer or broker.
In a very simple words, Smart contracts are comparable to if-then statements. That means, if the involved party or parties completes the responsive contract parameters, determined at the time of conception, then the contract is considered performed. Likewise, If the contract parameters are not satisfied, then there may be a penalty, a fee, or the contract may be terminated, depending on the terms agreed upon at the beginning of the contract.
In a real estate deal, for example, if the contract stipulated that an advance deposit be paid by a specified date and the funds were not received, the contract could be canceled. And this smart contract resides within the blockchain network in the form of distributed ledger. A distributed ledger is a decentralized ledger of transactions and contracts that is kept and maintained in multiple locations, hence called decentralized.
The agreement between a buyer and seller is written in lines of code within a smart contract, which executes itself based on the contract’s terms. As a result, because the code controls the contract’s execution, there is no need for external monitoring or control by a central authority.
So, in a way, smart contracts are revolutionary. But like any sophisticated technology, Smart contracts also has its own issues. The obvious one being that the smart contract is smart indeed, but not intelligent. When it comes to the agreement between humans, smart and fulfilling criteria is not 100% efficient technique. As one can argue that there are multiple factors attached to human involved contracts, which is inadequate to solve the contractual problems simply by using “if-then” statement.
3. History of ETC crypto
Essentially, the Ethereum blockchain was created as a network in which transactions could be made using the ETH token. However, the blockchain was hacked in June 2016, resulting in the theft of $50 million in assets.
As a result, the network was split or hard forked in order to safeguard it. The division was created in order to return the stolen amount to their rightful owners, according to the documents that existed before the hack.
As a result, a split occurred, resulting in the existence of 2 varieties at the same time. The current network, named Ethereum, uses the cryptocurrency ETH crypto or ether, while the older network, named Ethereum Classic, which uses ETC crypto.
4. Hurdles in the path of ETC crypto
In spite of the fact that both Ethereum and Ethereum Classic enable smart contracts and target the same market, Ethereum has full-grown in acceptance as the more reliable of the two networks. Moreover, Ethereum’s ETH is the world’s second most widespread cryptocurrency after Bitcoin.
Security is also likely to be an issue with smart contracts, especially because Ethereum Classic has already been hacked and millions of dollars stolen. These difficulties may prevent Ethereum Classic smart contracts from being used in big financial transactions.
The crypto market’s regulations are still in its infant phases and is gradually maturing. This evolution of market regulation may or may not affect how Ethereum Classic. Because of their decentralized networks, the Securities and Exchange Commission (SEC) does not consider Ethereum or Bitcoin as securities.
Some cryptos may face difficulties getting acknowledged for inclusion in various financial products (like bonds, stock exchange fund and mutual funds) and that’s just the fact. Because these financial products do not consider crypto as securities. The regulatory depiction for Ethereum Classic and other less popular blockchain networks, remains uncertain in the future.
5. Future of Ethereum Classic
Because Ethereum is considered the more authentic of the two networks, Ethereum Classic’s future appears to be less bright than Ethereum’s, especially given Ethereum Classic’s security concerns. Investors have lost faith in ETC over the years as a result of system hacks, and Ethereum Classic may face hurdles until it can revamp its code and software to prevent future breaches. However, it remains to be seen how the Ethereum Classic project develops smart contracts and whether they can be embraced for wider use.
6. ETC crypto vs ETH crypto
|ETC crypto||ETH crypto|
|Ethereum Classic’s ETC has value as a speculative digital asset that investors can trade||Ethereum’s ETH is the more legal and extensively traded|
|ETC crypto has 128,626,998.28 coins in circulation.||ETH crypto has 116,756,357.56 coins in circulation.|
|As of July 19, 2021, ETC is worth $41 per coin. (approx.)||As of July 19, 2021, ETH is worth more than $1814 per coin. (approx.)|
|Market cap $5,358,821,018||Market cap $212,678,137,198|
In the above table about ETC vs ETH, we can somewhat conclude that how the investing community feels about both the crypto. And evidently there is a huge difference between these two. When the market capitalization of the two cryptos are compared, ETH comes out on top. A cryptocurrency’s market cap is derived by multiplying the currency’s price (based on a fiat currency, such as US dollars) by the total number of crypto in circulation.
Despite the fact that both networks support smart contracts, the aforementioned security concerns surrounding ETC will likely drive investors to invest in ETH and use Ethereum’s smart contracts rather than Ethereum’s Classic smart contracts.
7. Ethereum Classic’s Objectives
The Ethereum Classic project has seen several modifications and additions since the split. The project’s purpose is to develop a global payment network based on smart contracts that can operate without the need for centralized authority.
Ethereum Classic, like other cryptocurrencies, will most likely aspire to be a digital store of value, meaning it can be saved and exchanged while maintaining its worth. The digital store of value for any crypto means having a purchasing power that includes the ability to convert into other assets or into cash, just like traditional money.
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8. Is ETC crypto a good investment?
In reaction to a blockchain hack that took place in 2016, the hard fork caused a divide among developers. However, Ethereum Classic kept the code in its original form.
Unlike Ethereum, Ethereum Classic does not have an official development team. Although there are a number of unofficial groups striving to improve the blockchain. ETC does not appear to be introducing any substantial changes any time soon, but ETH has a defined roadmap with numerous major developments planned.
This could put ETC at a significant disadvantage, as the cryptocurrency industry is extremely dynamic, and cryptocurrencies that do not evolve will eventually be phased out. But it’s not a toss-up. NOWPayments, a payment gateway, recently accepted ETC, and the launch of NFTs on the ETC blockchain is in the works.
Some stats for ETC crypto
|Fully Diluted Market Cap||$8,834,037,856.90|
|Circulating Supply||128,628,757.20 ETC|
|Price||$41 per coin. (approx.)|
So, is it a good idea to invest in ETC crypto? To be very honest, it is a very risky to invest in it simply because ETC crypto’s younger variant ETH seems to be more trustworthy and widely accepted crypto. And the point we made earlier about the hurdles of ETC crypto should be considered.
Having said that, it is always a risk to invest in crypto assets as if now. And you should do more research and consult with the professionals to do investment in cryptocurrencies. Disclaimer: We are not in any way trying to give an investment advice, rather a general knowledge about the ETC crypto.