Ethereum Classic | Trading Non Stop

What is ETC?

Ethereum Classic (ETC) is the original Ethereum blockchain that split in 2016 to protect the integrity of the ledger after a major hack. It focuses on decentralized smart contracts and follows the principle of "Code Is Law," meaning the code rules without changes or interference.

Original Ethereum chain – Keeps the blockchain unchanged after the 2016 DAO hack split.
Proof of Work & immutability – Uses Proof of Work (PoW) to secure the network and make transactions permanent.
Capped supply – Has a fixed maximum of 210.7 million coins, similar to Bitcoin’s limited supply.

Deep Dive

1. Origin and Philosophy

Ethereum Classic was created in 2016 when the Ethereum community split over how to handle a $50 million hack. Ethereum (ETH) chose to reverse the hack by creating a new version of the blockchain, while Ethereum Classic kept the original chain intact. This decision was based on the belief that blockchain transactions should never be changed, even in cases of theft. This idea is summed up by ETC’s motto, "Code Is Law," which means no central authority can alter the blockchain.

2. Technology and Security

Ethereum Classic uses Proof of Work (PoW), the same system Bitcoin uses, where miners solve complex puzzles to confirm transactions. This method helps keep the network decentralized and resistant to censorship because miners operate independently. In contrast, Ethereum switched to Proof of Stake (PoS) in 2022, which relies on validators holding coins rather than mining.

However, ETC has experienced several 51% attacks, where attackers gained control of the network to reverse transactions (The Defiant). This shows the challenges of balancing security with scalability.

The network supports smart contracts and decentralized applications (DApps) through the Ethereum Virtual Machine (EVM). This allows for things like token creation and decentralized finance (DeFi), although ETC’s adoption is smaller compared to Ethereum.

3. Tokenomics and Governance

Ethereum Classic has a fixed supply limit of about 210.7 million coins. The rate at which new coins are created decreases by 20% every 5 million blocks (roughly every 2.5 years), making ETC a deflationary asset similar to Bitcoin. This scarcity has earned it the nickname "programmable digital gold."

Governance on ETC is decentralized, meaning any upgrades or changes require agreement from the community, unlike Ethereum, where developers have more control over updates.

Conclusion

Ethereum Classic is a Proof of Work blockchain that values immutability and resistance to censorship, setting it apart from Ethereum’s changing approach. Its fixed supply and commitment to "Code Is Law" attract users who prioritize decentralization. However, ETC faces challenges with scalability and wider adoption. Whether its focus on core blockchain principles will secure a lasting role in a market leaning toward faster but more centralized solutions remains to be seen.