Ethereum Classic Price

Ethereum Classic (ETC) is a cryptocurrency that originated from a split or "hard fork" of the original Ethereum blockchain. This split occurred in July 2016 as a result of a divergence in the Ethereum community following a major hacking event known as the DAO (Decentralized Autonomous Organization) hack. In this event, an attacker exploited a vulnerability in the DAO's smart contract code, leading to the theft of over 3.6 million Ether, worth around $50 million at the time.

The Ethereum community faced a significant decision: whether to reverse the hack through a hard fork, effectively "rewinding" the blockchain to return the stolen funds or to proceed without making these changes. The majority supported the hard fork, which led to the creation of what is now known as Ethereum (ETH), where the stolen funds were returned to their original owners.

However, a portion of the community opposed the hard fork on the principle of "immutability," a foundational concept in blockchain technology that argues the ledger should not be altered after the fact, regardless of the circumstances. They continued to support the original blockchain, which was renamed Ethereum Classic (ETC). Thus, Ethereum Classic and Ethereum have since evolved as separate projects with different development teams, communities, and goals. However, they share much of the same codebase up to the point of the fork.

Ethereum Classic retains the original Ethereum blockchain's vision, emphasizing the principle of "Code is Law," and focuses on preserving the untouched history of the Ethereum network. It operates as a decentralized computing platform that can execute smart contracts—self-executing contracts with the terms of the agreement directly written into code. ETC is used within the Ethereum Classic network to pay for transaction fees and computational services.

Despite the split, Ethereum Classic has continued to develop its platform, focusing on stability, technology, and a distinct philosophy from Ethereum. However, it's important to note that Ethereum has since become the more widely adopted platform, with a larger developer community and more applications built on its network.

Ethereum Classic (ETC) operates similarly to the original Ethereum and other blockchain platforms but with its own distinct features and development path following the split. Here’s a breakdown of how Ethereum Classic works, focusing on its key components and functionalities:

1. Blockchain Technology

Ethereum Classic is built on blockchain technology, a decentralized and distributed ledger that records all transactions across a network of computers. This ensures transparency, security, and immutability, as once transactions are recorded on the blockchain, they cannot be altered or deleted.

2. Smart Contracts

At the heart of Ethereum Classic is the ability to create and execute smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. This enables developers to build decentralized applications (dApps) on the Ethereum Classic platform.

3. Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) is Ethereum Classic's runtime environment for smart contracts. It is a completely isolated environment, meaning that code runs without access to the network, filesystem, or other processes. The EVM makes the process of creating blockchain applications easier and more efficient, as developers can write smart contracts in high-level programming languages like Solidity.

4. ETC Crypto

ETC is the native cryptocurrency of the Ethereum Classic network. It is used to compensate participants who perform computations and validate transactions (miners), and it's required to pay for transaction fees and computational services on the network. Holding ETC also gives members of the Ethereum Classic community the ability to participate in the platform's governance to some extent, depending on the development decisions and direction of the network.

5. Proof of Work (PoW) Consensus Mechanism

Ethereum Classic utilizes a Proof of Work (PoW) consensus mechanism, where miners compete to solve complex mathematical problems to validate transactions and add new blocks to the blockchain. This process secures the network and ensures that all transactions are processed fairly and in chronological order. As a reward for their efforts, miners receive ETC tokens.

6. Decentralization and Immutability

Ethereum Classic emphasizes the principles of decentralization and immutability. It operates under the philosophy that the blockchain should remain unchanged and transactions irreversible to uphold the integrity and trustlessness of the network. This stance was central to its split from Ethereum, emphasizing "Code is Law."

7. Development and Governance

The development and governance of Ethereum Classic are more decentralized compared to some other blockchain projects. Various independent teams and individuals contribute to its development, with decisions often made through community consensus or following the lead of major development teams and stakeholders within the ecosystem.

Ethereum Classic aims to provide a stable and predictable platform for developers, maintaining compatibility with Ethereum’s developments up to the point of the fork while also implementing its own improvements and features to enhance security, scalability, and functionality.

The Ethereum Classic blockchain originated from a divisive event within the Ethereum community, leading to a split in the Ethereum blockchain. This event occurred in July 2016, following the controversial decision to hard fork the Ethereum network in response to the DAO hack.

The original Ethereum network was created by Vitalik Buterin and several co-founders, including Gavin Wood, Charles Hoskinson, Anthony Di Iorio, Mihai Alisie, Amir Chetrit, Joseph Lubin, and Jeffrey Wilcke, among others. These individuals were instrumental in the development and launch of Ethereum in July 2015.

However, Ethereum Classic came about due to a segment of the Ethereum community's decision to continue using the unforked version of the Ethereum blockchain after the DAO hack incident. Ethereum Classic does not have specific founders like Ethereum or other cryptocurrencies do. Instead, it was formed by community members who believed in maintaining the original Ethereum blockchain's immutability, operating under the principle that "Code is Law."

In 2023 and early 2024, Ethereum Classic (ETC) saw significant developments, notably the implementation of the SPIRAL hard fork and the anticipation of the "Fifthening" event:

1. SPIRAL Hard Fork: Scheduled for block 19,250,000, the SPIRAL hard fork is a significant upgrade for Ethereum Classic, expected to occur around January 31, 2024. This upgrade is part of Ethereum Classic's ongoing efforts to improve the network's functionality and efficiency. The SPIRAL hard fork includes technical changes and enhancements, particularly aimed at updating OPCODEs and aligning the ETC Network with current Ethereum Virtual Machine (EVM) standards, which facilitates contract development and migration on the platform. Node operators and miners have been advised to update their software to the latest version to ensure smooth network operation post-upgrade​​​​.

2. The Fifthening: Another pivotal event for Ethereum Classic is the "Fifthening," which is akin to Bitcoin's "halving" process but specific to ETC. Ethereum Classic's monetary policy includes a mechanism where, for every 5,000,000 blocks, the mining reward decreases by 20%. This reduction aims to reduce the rate of new ETC entering circulation, mirroring a form of digital scarcity similar to gold. The next Fifthening is projected to occur around May 25, 2024, further reducing the block reward and impacting the inflation rate of ETC. This event underscores Ethereum Classic's commitment to a predictable and diminishing issuance model, enhancing its appeal as a store of value​​.

Ethereum Classic (ETC) serves various purposes within its blockchain ecosystem, similar to how other cryptocurrencies are used within their respective networks. Here are some of the key uses of ETC:

1. Transaction Fees and Gas: ETC is used to pay for transaction fees and computational services on the Ethereum Classic network. Whenever users execute transactions or deploy and interact with smart contracts, they must pay fees in ETC. These fees are calculated based on the complexity of the transaction and the computational power required to execute it, referred to as "gas" in the Ethereum and Ethereum Classic ecosystems.

2. Smart Contracts and Decentralized Applications (dApps): Ethereum Classic supports smart contracts and dApps, similar to Ethereum. Developers use ETC to deploy and interact with smart contracts on the blockchain. This enables a wide range of decentralized applications, from financial tools to games, to operate without the need for a central authority.

3. Incentive for Ethereum Classic Miners: Miners are rewarded with ETC for validating transactions and securing the network. Ethereum Classic uses a PoW consensus mechanism, where miners solve complex mathematical problems to validate transactions and add new blocks to the blockchain. The ETC reward serves as an incentive for miners to contribute their computational power to the network.

4. ETC Staking and Governance: While Ethereum Classic itself does not currently support staking in the same way as Proof of Stake (PoS) networks, ETC can be used in various platforms and applications built on top of the Ethereum Classic blockchain that may offer staking mechanisms. Additionally, holding ETC can grant users a say in certain governance decisions within the ecosystem, depending on how individual dApps or platforms are structured.

5. Investment and Store of Value: Like other cryptocurrencies, ETC is bought, sold, and held as an investment. Investors may speculate on the price of ETC or hold it as a store of value, similar to digital gold. The finite supply of ETC (capped at approximately 210.7 million ETC) adds to its scarcity and potential value over time.

6. Interoperability and Tokenization: ETC can be used for tokenization, where real-world assets are represented as tokens on the blockchain, facilitating their exchange and interaction within the Ethereum Classic ecosystem. Additionally, efforts in interoperability may allow ETC to be used across different blockchain platforms, enhancing its utility and application.

7. Trade Ethereum Classic on KuCoin: Trade ETC coin against other cryptocurrencies on the KuCoin Spot Market to make the most of changing market conditions and volatility. Buy or sell $ETC or hold it long-term if you believe in the future potential of Ethereum Classic and PoW coins. Remember to DYOR before trading ETC in the crypto market.