What Exactly Is The Ethereum Classic?

By October 11, 2021March 29th, 20225 minute read
What Exactly is Ethereum classic_WazirX

Have you ever looked at a crypto coin on an exchange and wondered; when did this come into existence? And no, we don’t mean a coin that’s sinking below, among the thousands of other cryptocurrencies. We’re talking about a coin popular enough to be in the top 20 crypto-list based on their market cap. 

While most of us may have already seen or perhaps heard about it, not many might be aware of the backstory of Ethereum’s counterpart – Ethereum Classic. So feel free to sit back and let us unfold the idea and story behind Ethereum Classic. 

What Is Ethereum Classic?

Ethereum Classic in and of itself is a direct identical twin of the existing Ethereum blockchain. It is a cryptocurrency and computing platform based on blockchain technology. One of the most common uses of this is for developers to create smart contracts. These contracts are triggered to perform specific orders when certain preset conditions are fulfilled. 

Even the crypto coin of Ethereum Classic is called Ether, and before you get confused, they differ in their symbols. Ethereum’s Ether is termed as ETH, whereas Ethereum Classic uses ETC to describe its native coin. Ether (ETC) is also used as payment to facilitate transactions on the Ethereum Classic blockchain. 

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I got it. They’re almost the same. Do they both differ in any way at all, then?

Of course, they do. The story behind Ethereum Classic’s inception is a good prerequisite to understanding how they both differ.  

Why and How did Ethereum Classic come into existence?

The answer to our curiosity lies in the past when in 2016, a German startup named Slock came up with a project on the Ethereum blockchain known as “DOA” (Decentralised Autonomous Organisation). 

The DOA is an entity based on smart contracts that executes transactions without human manipulation or intervention. 

2016 being bad as it also bore witness to some of the major hacks of the decade, and Ethereum was not left out either. 

Hackers managed to find a loophole in the smart contracts and made themselves richer by about $50 million. This breach created a huge controversy as users were baffled at their loss, and creators of Ethereum wanted to revert the damage, reverse the clock so to speak as if nothing happened. After which Ethereum split into two; Ethereum and Ethereum Classic. 

To resolve the matter, Ethereum founders Gavin Wood and Vitalik Buterin helped to hard fork the original Ethereum blockchain, producing the current Ethereum we know today. 

This split, however,, made Ethereum users clash with their blockchain technology’s intent. As we know, blockchain technology is a digital ledger that records all transactional data that can never be manipulated or deleted. 

A portion of the crypto community didn’t appreciate the idea of any human manipulation in the original Ethereum blockchain. On the other hand, users who were victims of theft supported the modification to reverse their loss. Frankly, the ethical and technical aspects of  Ethereum were the highlight of this conflict.

Soon enough, those who wished to stay true to the original Ethereum blockchain remained back and renamed it Ethereum Classic.

Difference between Ethereum and Ethereum Classic 

Now, down to differentiating the both.

Technically speaking, both chains are similar and only differ in being updated. The original Ethereum, now known as Ethereum Classic (ETC), is completely separated from all updates of Ethereum(ETH). 

This means that Ethereum Classic is completely programmed with the original model. Also, it contains no revised developments that Ethereum has made so far, including the Ethereum 2.0 version.  

This also means that Ethereum Classic is a ledger with the record of the infamous hack, whereas Ethereum contains no such record.

Difference between Ethereum and Ethereum Classic 

Is Ethereum Classic a good investment?

We hope you perhaps have a good understanding of what Ethereum Classic is now. But the important question is whether this is a good investment for you or not. 

The open-source blockchain platform Ethereum Classic provides smart contract functionality, which is mainly aimed at building and powering decentralized applications. This is similar to the Ethereum system, but Ethereum Classic appears to be wrestling to earn the same popularity. 

Given the problems that ETC is facing, it’s tough to say whether it is a good investment. The future of Ethereum Classic appears to pose various reliability and scalability issues, which suggests that the token lacks clarity and does not look propitious relative to Ethereum. 

After a sequence of 51% attacks, many developers have become doubtful as to if the network would succeed. A 51% arises when a major miner influences the hash rate of a network of over 51% and then utilizes it for double-spending and theft of coins. Altogether, Ethereum Classic has been hacked again and again at a rate of 51%, making it quite risky.

Certain factors on ETC’s have impeded its long-term growth. Some of these involve insufficient support, visibility, and security. In addition, Ethereum Classic, as opposed to Ethereum, uses a Proof-of-Work-based model, which has become a target of the 51% attacks in contrast with other consensus protocols. 

Nevertheless, the price of ETC has overall exhibited great resilience and performance over the previous year. Despite having vulnerable security, the token has not been largely impacted. This indicates that investors’ primary focus is not on the fundamental structure or long-term security but on short-term price dynamics.

Where can you buy Ethereum Classic easily in India?

If you wish to buy Ethereum Classic in India, you can visit the crypto exchange; WazirX to get your hands on it.

To sign up, you simply need to add in your email, get your KYC approved, add your country, and you’re done. You can also check the current Ethereum price in India if you’re interested.

Conclusion

So that was all about Ethereum Classic! We covered up some of the features of this crypto and why it was created. Also, we discussed if it is a good investment and examined Ethereum Classic’s future. Nonetheless, cryptocurrency markets always bring fresh and new potential coins specifically designed to decentralize. Apart from that, cryptocurrency and Ethereum’s main goal is its global adoption. So what’s your opinion on Ethereum Classic price prediction? Is it worth it? Drop comments below to let us know what you think!

Further Reading:

What is Ethereum?

What are the Differences Between Bitcoin and Ethereum?

What are the Differences Between Ripple (XRP) and Ethereum (ETH)?

What is the difference between Litecoin and Ethereum?

What is Ethereum 2.0? Is it different from Ethereum?

5 Myths About Ethereum

5 Reasons Ethereum Momentum is Accelerating

ETH 2.0 Beacon progress, what to expect next?

Ethereum price prediction: Will it hit $5000 in 2021?

5 Things to Keep in Mind While Buying or Selling Ethereum

What is the difference between Bitcoin, Ethereum, and Ripple?

Can I Invest In Cryptocurrency?

Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.

What Is The Safest Cryptocurrency To Invest In?

Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

Is Mining Cryptocurrency Legal?

Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.

Is Ethereum Safe To Invest?

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

How Safe Are Cryptocurrencies?

Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.

Is Bitcoin And Cryptocurrency The Same Thing?

Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.

Are Cryptocurrencies A Good Investment?

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.

Who Invented Cryptocurrency?

Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

Is Pi Cryptocurrency Safe?

Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

What Is The Meaning Of Crypto?

A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.

Which Cryptocurrency Is Best To Invest Now?

Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is ₹12,410.22.

Which Cryptocurrency Is Best To Invest In 2021?

Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.

Is Cryptocurrency Banned In India?

No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.

What Is Crypto?

Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.

Is Crypto Legal In India?

Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India

How Many Cryptocurrencies Are There?

There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.

How To Invest In Cryptocurrency In India?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.

How Cryptocurrency Works?

Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.

How To Invest In Cryptocurrency?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.

Is Cryptocurrency Legal In India?

In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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