What is Ethereum Classic?
Ethereum Classic runs smart contracts in a blockchain-based, open-source, decentralized environment. Ethereum Classic emerged in 2016 as the result of an attack on the Ethereum network. Ethereum was split into two blockchains. The first one was Ethereum Classic, and the second was Ethereum.
A unique feature of Ethereum Classic (ETC) is its inability to be altered. As well as a history of the entire network, this includes the 2016 exploit.
What are the pros and cons of investing in ETC?
Global payment network is still very much in its infancy. Still, the Ethereum Classic community has an idealistic approach to blockchain technology. Their belief is that blockchains cannot be altered. It is vital to understand that someone basically designed this technology of cryptocurrency to be impossible for humans to manipulate.
In the eyes of the ETC idealists, the hard fork of 2016 was not right. They believe the “Code is law” amendment keeps the inherent immutability of an institution with a completely different purpose than global finance. According to them, this hard fork sets a precedent that users can do what they want in the future.
Ethereum Classic offers a permanent ledger that makes it unique. However, security concerns and scalability issues undermine the platform’s development.
Ethereum Classic (ETC) supports smart contracts, but it has a relatively smaller market share than Ethereum. Developers lost confidence in the network because of the 51% attack. Several analysts claim that Proof of stake is a key component of Ethereum Classic’s scaling ability and protection against future attacks.
They often compare ETC to Ethereum. Why?
Ethereum and Ethereum Classic (ETC) will continue to be debated among long-term cryptocurrency lovers, regardless of their preferences.
It appears Ethereum Classic and Ethereum followed similar trends despite their enormous price differences. While both markets climbed in 2017, they declined in 2018. Following that, they both recovered in 2021.
At the present time, Ethereum seems like an excellent investment. The market capitalization of the cryptocurrency is slightly behind Bitcoin, making it one of the larger cryptocurrencies in the world. The platform has not only been developed to address the rapidly growing blockchain industry, but it can also power nonflammable tokens (NFT) and decentralized finance (DeFi).
Contrary to this, Ethereum Classic (ETC) portrays a completely different story. It is unfortunate that ETC lacks leadership, vision, and solid foundations. Prices for ETC, however, increased in early 2021 because of the search for low-cost coins. Because of the high prices, investment losses were reduced.
Could Ethereum Classic be an excellent investment given its controversy?
One of ETC’s advantages is that it is cheaper than Ethereum (ETH). This, however, is not enough to guide the organization’s future success, restricting its potential. Nevertheless, Ethereum Classic (ETC) may see a good long-term performance after a recent bull run.