I know you might probably be confused because there is a digital currency named Ethereum, and now another - Ethereum Classic? Why do they share a common name? Are they really different from each other? Well, let’s see.
Ethereum Classic is a digital currency that is open-source or publicly distributed computing platform that runs ‘Smart Contract’. It means that these applications can run exactly as programmed without any possibility of censorship, downtime, fraud, or third-party interference. It is also worth mentioning that it is Blockchain based on a public digital ledger.
It wasn’t created until just 2016 and its development is still active. To help understand why it shared a common name with another digital currency, the following brief history will aid your knowledge.
The split off happened after the DAO (Decentralized Autonomous Organization) based on Ethereum was hacked last June 2016. A total of $50 million worth of funds were stolen. Since the DAO was crowd funded, the event resulted with numerous people losing their stakes. After several weeks of debate, the community decided to make a "hard fork" of Ethereum's Blockchain in order to get the stolen funds back. A hard fork is a change in a Blockchain which causes separation.
The members who disagreed out rightly rejected the forking method on purely philosophical grounds. And since users already were in possession of ETC (the currency abbreviation of Ethereum Classic) before the fork, they still had that same amount after the fork. That was how a new digital currency, the Ethereum Classic was born after going through and passing some technical examinations. They argued that the Blockchain will always remain unchanged so they opted for using the unforked version of Ethereum and that is what we have today as Ethereum Classic.
Both of these resulting Blockchains are identical in every way up until block 1920000. Ethereum Classic offers similar features with the new Ethereum and has the same specifications like average block time, size, and reward. This digital currency also enables the execution of scripts using an international network of user-computer called nodes. This is due to its use of the Ethereum Virtual Machine (EVM).
It works to provide a value token known as ‘classic ether’, which is transferable from one participant to another and can be stored in a digital wallet. The ‘classic ether’ is also used to reward participant nodes for solving mathematical problems as a means of mining the digital currency.
The internal transaction pricing mechanism in its Blockchain network is called the GAS, and it has many functions including preventing spam on the network as well as awarding new coins based on requests.
- Provides the benefit of immutability - the Blockchain will always remain the same
- Resistant to miner consensus
- Considerably low transaction fees
- ETC mining is keeping up in comparison to its counter-part, ETH
- Less digital tokens than Ethereum
- Known to be full of scammers
How to Buy:
Method 1 - Buy a very common cryptocurrency like Bitcoin, Litecoin or even Ethereum. Then you go to an exchange website like Changelly Exchange or any other and swap it for Ethereum Classic currency (ETC) by giving them your popular coin. This is the easiest and safest way to acquire it.
Method 2 - You can purchase it directly from an Ethereum Classic miner with your fiat currency.
Method 3 - You can also buy it from a trading platform. There are those who already have Ethereum Classic and are willing to sell them as a means of trade.
The above-mentioned methods will only be viable if you already have an ETC wallet ready. Then also remember to transfer your coins to your wallet, which is when you can confidently say they are yours.
Although it is quite new in the market, a number of people and quite a handful of online exchanges questioned its validity, all has changed since the biggest online Ethereum exchange added it to their market.
So carefully search out reputable exchange website, register on the site, fund your account and proceed to trade on them. Other reputable exchange includes Coinone, Bitfinex, Bithumb, and OKCoin.cn and so on.
- The truth is that there are a few different options Ethereum Classic users can choose from; although, some are better than others. It all boils down to personal preference and choice between software or hardware options.
- For short-term storage of ETC, it is best to operate a software wallet like the mobile or web wallet. This type of wallet is also good for storing very small amount of ETC value.
- As a mobile solution, the multi-currency wallet Coinomi is good. It allows multiple types of assets with ETC being one. This application works for Android only, as of now. It might be on iOS soon.
- ClassicEtherWallet CX is a Chrome extension that will let you hold ETC with ease. There would be no need to resort to a web wallet since the extension is used as a local lite wallet.
- You could also opt for a full-fledged Mist Wallet, which is the native software that runs Ethereum, adjusted to work with Ethereum Classic. You can get it on GitHub.
- For long-term and safest storage of large amounts of ETC, please consider using hardware wallet as it will ensure your income remains intact and without any anxiety of default forfeit. Ledger Nano S has native support for ETC and can easily hold them on cold storage, or secured offline storage.