What is Ethereum Classic?
This blog post will cover:
- What is Ethereum Classic?
- Where did Ethereum Classic come from?
- What are the advantages of Ethereum Classic?
- What are the disadvantages of Ethereum Classic?
- How to buy Ethereum Classic on SimpleSwap?
What is Ethereum Classic?
Ethereum Classic is a decentralized platform that runs smart contracts. It is the original Ethereum blockchain free from external interference.
Where did Ethereum Classic come from?
Everything started with just Ethereum. The Ethereum system works on Smart Contracts. It is the basis of everything. These contracts automatically enforce and facilitate the terms of the contract. To operate in this system you have to make a Smart Contract. This system had a complex Smart Contract which is called the DAO aka Decentralized Autonomous Organization. It was supposed to be something like decentralized venture fund to fund all the DAPPS. So if you wanted to have a say in the direction DAPPS that would be funded, you would have to buy “DAO Tokens” for some amount of Ether. Thus you would become a part of DAO system. So to get approval DAPPS would have to go through the voting. If it got 20% of approval, it would be funded. The development of the DAO was revolutionary. Users rushed to get their piece of pie. The question is how do you get out if something you voted for didn't get approval? There was a way to opt out and to get back all Ether you invested. Or you could split off with multiple DAO token holders and start accepting proposals. The most important part is that after splitting off you would have to hold on for your Ether for 28 days before you can spend it. In 2017 someone noticed a loophole and took out one third of the DAO’s fund. It is about $50 million. It was the moment when the developers of Ethereum faced a choice between soft fork and hard fork. People who were opposed to hard fork stayed with the original chain. Now we call it “Ethereum Classic”.
What are the advantages of Ethereum Classic?
- The supply of ETC is restricted
It makes each token rarer and more valuable.
- There are projects that use ETC as foundation
- Stays true with the philosophy of the immutability of the blockchain
What are the disadvantages of Ethereum Classic?
- Because of the name, newcomers may mistake the project for Ethereum
After the fork, Ethereum Classic became an independent project with its own technical roadmap.
- Hasn't been tested with a high load
In the future, if ETC has the load that, let's say, ETH currently has it may require updates and scalability limit expansion.
- Security concerns
Ethereum Classic has been hacked before, which resulted in huge losses. This knowledge makes newcomers a little bit worried about the future. This is not the only large crypto project that has been attacked by hackers. Such events have a great impact on the reputation of projects and alert users. However, it is also important when the team tries to do its best to ensure that the situation does not happen again.
How to buy Ethereum Classic on SimpleSwap?
Let’s say you want to buy Ethereum Classic. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select ETC in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient's Address. ETC will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
This is everything you need to know to buy ETC.