Created in 2016, Ethereum Classic (ETC) is an open-source cryptocurrency network that runs smart contracts. This blockchain-based digital space was developed because of a hard fork of the system, splitting the blockchain into two with Ethereum as the new decentralized ledger and Ethereum Classic as the continuation of the original one. This explains why both networks share similar names and logos.
Ethereum Classic vs Ethereum
Although alike, Ethereum Classic isn’t compatible with the Ethereum codebase. What distinguishes ETC from ETH is that it operates based on the “Code is Law” principle. That is, ETC optimizes its application and ensures that it runs as coded with no downtime, restrictions, and intervention from a third party or external forces.
The protocol is based on ‘proof of work’ mining. It means that users can run hardware and software to keep the security of transactions and attest to their validity on the platform. Ethereum, on the other hand, moves away from the proof-of-work consensus mechanism and toward proof-of-stake. Additionally, unlike Ethereum which has an unlimited supply of coins, Ethereum Classic only has a total supply of about 210 million coins. The Ethereum Classic blockchain has also finalized the development and deployment of sidechains while Ethereum is still exploring it.
The main drawback of Ethereum Classic is its limitations in terms of scalability. It can handle an average of 15 transactions per second. This is far behind other payment platforms that can handle more than a thousand transactions per second. Moreover, as the technology has previous infiltration’s, security remains an issue with its smart contract.
ETC is the native cryptocurrency of the Ethereum Classic network. It is rewarded to miners who run applications on the platform. ETC is also interacts with programs on its own ecosystem, enabling users to swap tokens and dApps to issue tokens and NFTs.