Ethereum Classic (ETC) is a decentralized, open-source blockchain network that came into existence in July 2016 after the Ethereum network experienced a hard fork, a change to the blockchain's protocol or basic set of rules, creating two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC). Though sometimes confused with Ethereum, Ethereum Classic is now a totally different cryptocurrency with different technological and philosophical goals, specifically focusing on immutability, popularly expressed as "code is law." Ethereum Classic was established to uphold the integrity of the original Ethereum blockchain in the wake of a substantial hacking incident. The network's primary role is to function as a smart contract network, facilitating the development and support of decentralized applications (DApps). ETC is Ethereum Classic's native currency, which is used to power transactions and smart contracts on its network. Ethereum Classic strives to preserve the original Ethereum blockchain without artificially reversing the consequences of the DAO hack. It operates on a proof-of-work (PoW) mining algorithm and does not intend to transition to a proof-of-stake (PoS) consensus mechanism like Ethereum did., Ethereum Classic is a decentralized computing system that can run a wide variety of applications.

Ethereum Classic functions on a proof-of-work (PoW) consensus algorithm akin to Bitcoin. Like Ethereum and its native unit ETH, Ethereum Classic users pay fees in ETC to execute smart contracts, and you can think of it as the fuel that keeps the whole thing running (which is why those fees are called "gas"). Miners utilize their hardware to solve intricate mathematical equations and validate transactions on the Ethereum Classic network. The first miner to solve the equation and validate a new block is compensated with a block reward in the form of ETC tokens. Biweekly, the network automatically modifies the difficulty of mining Ethereum Classic to maintain a consistent block production rate. The new difficulty is determined by the total computational power of the network, and it becomes increasingly challenging to mine ETC as more miners join the network. Like ETH, new ETC is issued to the circulating supply as a reward for miners as new blocks of transactions are added to the blockchain. Unlike ETH, however, which doesn't have a fixed supply, ETC has a maximum supply of 210,700,000 coins.

The primary use case for Ethereum Classic is to function as a platform for decentralized applications (DApps) and smart contracts. It strives to uphold the principle of "Code is Law," resisting censorship and delivering unstoppable applications. This positions it as a potential foundational layer for future smart contract platforms. Ethereum Classic also aims to distinguish itself from Ethereum by preserving its original PoW algorithm and adhering to its decentralized philosophy.

Ethereum Classic was introduced in July 2016 as a hard fork of Ethereum, a radical change to the protocol of Ethereum that resulted in two branches, one that followed the previous protocol (Ethereum) and one that follows the new version (Ethereum Classic). This fork resulted from disagreements within the Ethereum community about how to address a significant hack that led to the theft of 3.6 million ETH. Those who disagreed with the decision to revert the blockchain to negate the effects of the hack continued on the original chain, which became Ethereum Classic, while other users upgraded to the latest version of Ethereum. Ethereum Classic has since diverged from Ethereum in terms of technical roadmap and philosophy.

Powerful computers mine (understand "create") ETC, adding it to the circulating supply. While Ethereum Classic can be mined using widely available graphics processors, it's most likely not profitable unless you use an ASIC, a specialized device designed for crypto mining. After Ethereum Classic's fork from Ethereum in 2016, Ethereum Classic has struggled to compete in terms of market capitalization, developers, and network security as measured by total mining power. Over its history, Ethereum Classic has been subject to numerous "51% attacks" in which malicious actors control most of the mining power and can thus spend coins they didn't own (also known as a double spend attack).

You can buy, send, and receive ETC via exchanges like Coinbase.

Ethereum Classic's history is closely tied to a noteworthy event in the world of digital assets known as the DAO incident. In 2016, a decentralized autonomous organization called "The DAO" was launched on the Ethereum blockchain. The DAO was an ambitious project that aimed to utilize Ethereum's smart contract capabilities to create a global initiative open to anyone. However, a few months after its launch, a hacker exploited vulnerabilities in The DAO's code and drained a large amount of Ether. This event led to a heated debate within the Ethereum community about how to respond. The majority aimed to implement a hard fork, a distinct solution that involved altering the blockchain's code to return the drained funds. This decision was controversial, as it contradicted the principle of blockchain immutability. Those who disagreed with the hard fork continued to use the original, unaltered version of the Ethereum blockchain, which came to be known as Ethereum Classic. The DAO incident and the subsequent fork were noteworthy moments in Ethereum's history, influencing its ongoing development and the current approach to blockchain security and project funding.

Ethereum Classic uses a consensus mechanism called Proof of Work (PoW) to validate and record transactions on its network. PoW utilizes computational power to maintain network security. It plays a crucial role in maintaining the integrity of the blockchain, facilitating security and utility. In Ethereum Classic, miners perform computational work to seal a new batch or block of transactions using a cryptographic stamp. This work is then sent to the rest of the network for verification and inclusion in the chain. This process is decentralized and permissionless, meaning any node globally can participate, regardless of their country, race, religion, language, or politics. Ethereum Classic intends to continue utilizing PoW as its consensus mechanism, with a focus on maintaining its decentralized nature and network security.

Smart contracts on the Ethereum Classic blockchain function as autonomous software applications that oversee agreements. These agreements can span from simple to highly complex. The idea of smart contracts, introduced by Nick Szabo, predates blockchain technology. Smart contracts are essentially computerized transaction protocols that carry out the terms of a contract. They strive to meet common contractual conditions, minimize exceptions, and lessen the reliance on trusted intermediaries. Ethereum Classic (ETC) serves as a platform for smart contracts, allowing them to handle numerous agreements with a focus on reliability and trustless operation. ETC smart contracts have the capability to interact with each other, which is a feature within the scope of their design. They have the potential to streamline existing agreements and facilitate contracts that may have been challenging due to overhead costs. ETC smart contracts are also referred to as decentralized applications or dapps.

Yes, developers have the capability to construct decentralized applications (DApps) on Ethereum Classic. Ethereum Classic includes a decentralized Turing-complete virtual machine, known as the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum Classic provides the necessary tools and functionalities for developers to build DApps. It is a version of the Ethereum blockchain that operates under slightly different rules and features.

Ethereum Classic currently features a range of functionalities and compatibilities, including improved network efficiency and reduced impact of ASIC mining. Some of the notable updates include the implementation of the Thanos hard fork, which aimed to improve the network's efficiency and reduce the impact of ASIC mining. This update introduced new features like improved difficulty adjustment algorithms and improved security measures. Ethereum Classic has also been working on improving its interoperability with other blockchains through projects like the ECIP-1103, which focuses on cross-chain communication. Another notable update is the Spiral update, scheduled for January 31, 2024. This update seeks to align Ethereum Classic with EVM standards, facilitating contract development and migration. These developments strive to improve the overall functionality and usability of Ethereum Classic, making it a more robust and versatile platform for building and deploying decentralized applications.

Ethereum Classic maintains its network security through a consensus mechanism known as Proof of Work (PoW). This mechanism is a method that has been utilized in the past, which essentially converts electricity into security. It's the same mechanism that was used in the first popular blockchain, Bitcoin. PoW is considered by some to have empirical and theoretical security from an economic game theory perspective. With a sufficient hashrate, PoW chains have demonstrated resilience. Ethereum Classic aims to continue utilizing PoW in its commitment to decentralization and security. However, like all systems, PoW has its limitations. It's subject to 51% attacks, which Ethereum Classic has experienced on multiple occasions. In some interpretations of PoW systems, 51% attacks are seen as a feature rather than a bug, with the acceptance of them being a trade-off for objective computer-verifiable rules about which version of a chain may be considered 'correct'. Ethereum Classic's approach to PoW and decentralization distinguishes it from other networks that utilize different consensus mechanisms, such as Proof of Stake.

Ethereum Classic's operational approach is designed to maintain the stability of the system. Initially, Ethereum Classic and Ethereum were one blockchain, and the operational approach involved distributing 5 ETC/ETH per block to acknowledge miners for their work. After Ethereum separated from Ethereum Classic in 2016, the ETC community adopted a new operational approach that mirrors Bitcoin's. This approach was applied on block 5,000,000 in December 2017. The approach includes a pre-distribution, eras, block rewards, uncle blocks, the fifthening, a supply cap, and a stock-to-flow ratio. The pre-distribution was 72,009,990 ETC/ETH, which forms part of the current supply of ETC. Each era lasts 5,000,000 blocks, and every 5,000,000 blocks, ETC reduces the distribution per block to miners by 20%. Block rewards started at 5 and are discounted from there. The supply cap of ETC will be between 199,000,000 and 210,700,000. The stock-to-flow ratio is a measure used to anticipate the distribution of tokens in the market. The stock-to-flow ratio is a measure, and its implications are subject to market dynamics.

Ethereum Classic (ETC) places a focus on decentralization and immutability, meaning that the blockchain's data remains unaltered. This has led to the development of various projects and initiatives within the Ethereum Classic ecosystem. These include Decentralized Autonomous Organizations (DAOs) and stablecoins, which are digital currencies designed to maintain price stability. Developers can write smart contracts on ETC that automatically execute when certain conditions are met, enabling the creation of these decentralized applications. The Ethereum Classic ecosystem is a collection of developers, users, businesses, and services organized around the Ethereum Classic blockchain platform, collaborating to develop and enhance the platform while creating an evolving decentralized infrastructure.

Ethereum Classic (ETC) has encountered a number of challenges and criticisms since its inception. One of the main criticisms is its perceived lack of developer activity compared to Ethereum, leading to questions about its ability to keep pace with ongoing developments in the blockchain space. Ethereum Classic has also faced security issues, particularly with 51% attacks, which are a shared concern for Proof of Work (PoW) blockchains. Some developers expressed a loss of confidence in Ethereum Classic following a series of 51% attacks on the network in 2020. The PoW consensus mechanism has raised environmental concerns due to the mining procedure. Ethereum Classic also has scalability limitations, being able to handle only 12 to 15 transactions per second (tps), in a context where speed and scalability are factors. The perceived lack of users and developers supporting the platform can also make it challenging for the network to push for new updates and developments. To address these challenges, Ethereum Classic aims to implement several upgrades and improvements, including the implementation of the Thanos hard fork and the introduction of a new consensus algorithm called MESS. The development team intends to enhance the user experience by introducing a new wallet called Emerald. The team seeks to consider new decentralized applications (dApps) and use cases for the platform.