Ethereum Classic should not be confused with Ethereum. The former is a blockchain-based distributed computing platform that uses Smart Contracts fully.
Ethereum Classic Coinbase
What Ethereum Classic is a public and open-source platform. As it borrows the Ethereum term, there are some similarities although they are different altogether. Ethereum Classic offers a virtual machine that is decentralized through its EVM or Ethereum Virtual Machine. As such, it is able to execute scripts through its public nodes residing in the international network. Like Ethereum, it uses ether, the value token. This is then used to transfer funds among its users. The Ether is used to be traded on cryptocurrency exchanges. Where Ethereum uses the symbol ETH, Ethereum Classic uses ETC.
History of ETC
A venture capital known as The DAO raised about USD168 million in May 2016 for projects that run on smart contracts. The DAO was built based on Ethereum and it was then that the white paper was released outlining security vulnerabilities with The DAO.
A month later, some 3.6 million Ether from the accounts of The DAO was moved without the consent of the owner. This prompted members of The DAO and Ethereum community on what should be done and in a landmark decision, a hard fork was implemented in July that year.
The Ethereum Classic came about after some of the members of the Ethereum community rejected the hard fork. This is because they believe that the blockchain cannot be changed. As such, they continued to use the classic (or unforked) version of the Ethereum (thereby the name). Today, Ethereum Classic continues to be used where it claims to be:
- A smarter blockchain
- Allows complex contracts that are autonomously operated
- ETC is owned forever by the users
Ethereum Classic – 2021 Updates
As of May 2021, the ETH is still considered to be more legitimate and definitely more accepted worldwide. That said, the ETC has been growing steadily and is becoming more popular. In the first quarter of the year, the trading of ether futures was approved by the CME (Chicago Mercantile Exchange). This means that investors can trade ether for speculation which together with bitcoin are the 2 types of cryptos approved for this market.
With 116.3 million ETC out in circulation, this matches the ETH which is 115.6 million coins. However, it is a far cry from the ETH in terms of market capitalization as at the end of April 2021, ETC is US$3.9 billion while ETH is over US$300 billion. The price for ETC was around US$33 while ETH was trading at more than US$2,500.
The goal of the ETC is to become a payment network accepted globally through the use of smart contracts and its rising popularity suggests that it is moving in the right direction. In May 2021, the price of the ETC has been hovering around the US$35 to US$45 mark and it has been there for quite a while. The short-term prediction is that ETC would not have any major changes until September 2021. The fourth quarter of 2021 would be stronger as the COVID-19 pandemic is expected to near its end then.
Market observers are positive that the current trend will push the ETC price past the US$50 mark by the third quarter, effectively staying above that price until the end of the year. It should then stabilize after the first 2 months of 2022 and will remain so above the US$50 mark for most of next year as well with occasional drops to slightly below US$40 at some point but that would then go up again after the market stabilizes.
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