Ethereum Classic is an older version of the Ethereum network or one of the first members of the network. The cryptocurrency market has been unstable, but the project’s passionate supporters have been there the whole time and helped keep it on track. Because of this, Ethereum Classic is still highly regarded even though there are thousands of other cryptocurrencies.
If you want to know more about Ethereum Classic and how it’s being made, you’re in the right place. In this Ethereum Classic tutorial, we will talk about the following:
The History of Ethereum Classic
A Decentralized Autonomous Organization, or DAO, can be built on Ethereum with the help of smart contracts. In simple terms, a DAO’s system for making decisions and governing itself is written down and doesn’t need human help.
The German company Slock.it launched its “The DAO” project on Ethereum in 2016. Crowdfunding brought in more than $150 million for the project, but hackers found a flaw in the smart contract and stole $50 million. Most Ethereum users, including its founders Vitalik Buterin and Gavin Wood, backed a hard fork, which is a major change to the blockchain’s base protocol. Because of this, the new Ethereum (ETH) chain was made.
But some people in the community still didn’t like the fork. Instead, they stuck to the idea that “Code is Law.” They stayed on the old chain and renamed it Ethereum Classic because they said blockchains couldn’t be changed based on what people wanted (ETC).
Ethereum Classic is often thought of as the “original” Ethereum cryptocurrency because it keeps the old code of the Ethereum blockchain as it was before the DAO attack.
The original blockchain for Ethereum was split into two different networks: Ethereum and Ethereum Classic.
Ethereum Classic is a platform for smart contracts and distributed governance that is based on the blockchain.
Based on the idea that “Code is Law,” smart contracts are computer programs that carry out their terms automatically and reliably by following the terms and conditions that have already been set. A good example of this is an ATM at a bank (Automatic Teller Machines).
Different Ways to Use Ethereum Classic
- On the Ethereum network, the Ethereum Classic (ETC) token is mostly used to pay the fees for sharding.
- Before, ETC was used to pay transaction fees and the costs of running smart contracts on the Ethereum network. All of these things are called gas, and the money you spend on them is called GAS.
- In addition to being a native token, ETC has a monetary policy that sets a regular, deflationary emission schedule and a market supply cap. The cost of these operations is shown by the acronym GAS.
What’s the difference between Ethereum Classic and Ethereum?
ETC and ETH are the same in terms of how they work. Developers, for example, can use open-source code to build and run their own decentralized apps (dApps). ERC-20 tokens can also be made for their applications. Read our guide to learn more about how ETC can do these things: What exactly is Ethereum?
Still, the main thing that makes Ethereum Classic different is that it can’t work with updates to the ETH blockchain. A hard fork is an update that can’t be used with the old version. By putting in place a new set of rules, the new chain and its users (nodes) are completely cut off from the original chain. So, the old chain (Ethereum Classic) can’t see any changes made on the new chain (Ethereum).
Now, someone might ask, “Why have ETC if it can’t be updated?“
As has already been said, the Ethereum Classic is based on ideas more than anything else. Its biggest reason for being, or reason for being, is to keep the original Ethereum code from being changed. In this way, ETC is like a record of the Ethereum network’s history that hasn’t been changed.
How to Use Classic Ethereum (ETC)
Even though ETC works the same as Ethereum, users who want to run a node or do business on the Ethereum Classic network will need the right software for Ethereum Classic.
ETC is mostly used to move money on the L1 network of Ethereum Classic.
Ethereum Classic is also appealing because its own tokens, called Ethereum Classic (ETC), can be used to run smart contracts. It can also be used as a way to speculate on investments and pay for things.
How to Pick a Wallet for Ethereum Classic (ETC)
What you want to use your Ethereum Classic (ETC) wallet for and how much you need to store will probably determine which type you choose.
Hardware wallets also called “cold wallets,” are the safest way to store and back up your cryptocurrency. Hardware wallets like Ledger and Trezor can be used to store ETC. Hardware wallets are more expensive and can take a little more time to get used to. Because of this, they may be better for experienced users who want to store more ETC.
Software wallets are another option. They are easy to use and free. You can download them to your phone or computer, and they can be either custodial or non-custodial. With a custodial wallet, the service provider takes care of your private keys and backs them up. The private keys for non-custodial wallets are kept in safe places on your device. Even though they are easy to use, they are not as safe as hardware wallets. They may be better for smaller amounts of Ethereum Classic (ETC) or for people who are just starting out.
Online wallets, also called “web wallets,” are also free and easy to use. They can be accessed from a web browser on many devices. They are called “hot wallets,” but they may not be as safe as hardware or software alternatives. Since you are probably going to let the platform handle your ETC, you should choose a service with a good reputation and a history of security and custody. Because of this, they are best for holding smaller amounts or for traders with a lot of experience.
Kriptomat gives you a safe way to store your Ethereum Classic (ETC) tokens and makes it easy to store and trade them. Using Kriptomat to store your ETC gives you enterprise-level security and easy-to-use features.
When you use our secure platform as your storage solution, you can quickly buy and sell ETC or exchange it for any other cryptocurrency.
Both Ethereum and Ethereum Classic support smart contracts and want to serve the same market, but because Ethereum is seen as a more reliable platform, it has gained more users.
Even though there have been many changes to the code, the future of Ethereum Classic is still uncertain because of worries about how well its payment systems can grow. Since Ethereum Classic has already been hacked and millions of dollars have been stolen, this suggests that smart contracts may not be as safe as they seem.