One of the most surprising phenomena in the world of cryptocurrency in late 2017 early 2018 was the Ethereum Classic (ETC) cryptocurrency. One of the leading cryptocurrencies has mostly positive feedback from experts and holders of digital coins. The headlines of the media repeatedly adorned the information that Ethereum Classic is an attractive currency for miners or an absolutely useless resource in the digital world. But, as it really is, The Coin Shark offers to get to know it in more detail and also to consider what future awaits for Ethereum Classic in 2018.
- What is Ethereum Classic?
- What is hard fork?
- History of the creation of Ethereum Classic
- What are the features and difference of this currency?
- Expert predictions
- Conclusion for investors
The Ethereum Classic platform is designed for developers who are creating decentralized applications based on smart contracts. It is the result of Ethereum’s division into two parts of – the second cryptocurrency and platform in terms of capitalization designed to create decentralized applications on blockchain. The split occurred on the 20th of July, 2016, after the hacking of one of the largest funds TheDAO.
To begin with, hard fork is the process of changing cryptocurrency protocols, which involves putting a new rule into operation that is incompatible with the previous work of the software. This update is accompanied by large-scale and fundamentally different changes, which not so long ago happened with the network of the Ethereum Classic. The developers reported that the upgrade was a hasty, as a result, the time taken to create the new block was reduced. You can read more about Ethereum Classic news here.
Let’s return to the history of the creation of Ethereum Classic. It all started with the launch of the second digital currency Ethereum by Vitalik Buterin, which became the base for the DAO cryptocurrency fund. After some time, users discovered a vulnerability in the work of DAO, which developers simply did not pay attention to, because in their opinion it did not pose a particular threat. This was their fatal delusion, which ultimately led to the collapse. Using an error in the network code, attackers stole digital coins for $50 million.
This event went down in history, as hackers stole 14% of ETH from the possible number of them. This caused a mass panic among users, as a result, reducing the cost of Ethereum by 40%. The developers decided to conduct a hard fork, not to give hackers stolen cryptocurrency. This completely contradicted the principles of the immutability of the blockchain and the decentralization of the network, but the hard fork was conducted, and the funds were returned to the network. Thus, the new platform Ethereum Classic with ETC tokens was launched.
Ethereum Classic is distinguished by the following distinctive features:
- immutability. With hard fork, decentralization has been preserved;
- stable operation, which provides users with a high level of security;
- a high level of liquidity, which gives guarantees for the positive future of this cryptocurrency
The main factor that can stimulate the ETC price to grow is to reduce the maximum issue amount by 210 million coins, which is $20 million in fiat money. This event has already been completed, after that the ETC rate have gone up.
Mining can also contribute to the rise in the price of Ethereum Classic.
Experts recommend investing in ETC for the short term, as for the long-term, it is best to give preference to ETH.