Asides from Bitcoin, Ethereum remains the leading cryptocurrency in the crypto market. The leading altcoin is the most valuable amongst altcoins amidst a powerful network and platform. Ethereum is a network that hosts most of the Decentralized Apps (DApps) and Decentralized Exchanges (DEXs) powering the DeFi ecosystem. Since it began operation in 2015, the network has remained valuable to the growth and existence of the cryptocurrency terrain. High speed and low gas fees are among the many benefits users, and developers enjoy from the network. Its growth has also been evident in its token- Ether, which has given investors about 4,000% ROI. However, its story can not be complete without mentioning Ethereum Classic- a 2016 fork of the network.
What Is Ethereum Classic?
Ethereum Classic is a decentralized network that uses smart contracts to run decentralized applications. The network began operation in 2016 due to a hack of The DAO- a smart contract operating on the Ethereum network. Like Ethereum, it is an open-source and blockchain-based distributed cryptocurrency that runs on smart contracts. It is very similar to Ethereum because they share the same source and common origin. Like typical blockchain networks, its use cases include recording transactions of value. However, its uniqueness is that it can also be used as a distributed computer to run self-executing smart contracts. These smart contracts are independent and do not require third-party interference or enforcement. According to its developers, the network is a continuation of the unaltered history of the original Ethereum chain. The network also empowers DApps under it to issue their tokens, including NFTs. ETC is its native and utility token.
History Of Ethereum Classic
The network came into existence due to the disagreement of some developers concerning the operations of the then Ethereum blockchain. These developers, called “The DAO (Decentralized Autonomous Organization), used Ethereum to create a venture capital fund. This VC fundraised $100 million by allowing people to invest ETH and promising them profit sharing as ROI. Apart from returns, investors also had the power to make decisions concerning assets allocations. Unfortunately, there was a vulnerability in the fund’s code, which led to a hack of the network. The hack saw the illegal withdrawal of millions of dollars in the form of ETH.
Investors began to panic and gave developers a month to develop a solution before the hackers cashed out on the stolen tokens. The solution required developers to create a hard fork to reverse the hack and give investors their money back. Vitalik Buterin and many other big investors of the network were in support of this solution, while others were not. One of the core reasons for the rejection was that they felt it would be unethical to tamper with the ledger of a Blockchain. This was why they wanted the network to continue operations despite the theft. However, they stayed in the network and renamed it Ethereum Classic. Vitalik Buterin, most miners, developers, and users moved to the forked network. The forked network is what we now know as Ethereum today.
How Does ETC Work?
The similarities between Ethereum Classic and Ethereum would create the impressions that both networks operate the same way. However, while similarities exist in their structures, they operate slightly differently in some areas. Like Ethereum, it relies on the proof-of-work consensus mechanism. This means that its users globally secure the network by running hardware and software to validate its transactions. In exchange for their work, they earn incentivizes in ETC.
It is worth mentioning that Ethereum is gradually transitioning into a proof-of-stake consensus mechanism. In terms of communication, users can also use ETC to interact within the network and the DApps in its ecosystem. Like Ethereum, ETC holders can transact with the token by sending, receiving, or trading it. Unfortunately, the network’s overall usage is shallow, as it is not the developers’ preference. This has made the network a bit redundant and vulnerable. Blockchains need to have a distributed group of users running the network for security reasons. If this does not happen frequently, it leaves the network susceptible to scammers and hackers.
What Makes Ethereum Classic Unique?
One of the uniqueness of Ethereum Classic is that it is currently preserving the original design of the Ethereum network. After the DAO hack and the fork splitting, the new network lost some of the original footprints meant for Ethereum. Fortunately, Ethereum Classis is still keeping that DNA. Despite being created by the minority, it has also attracted huge crypto investors and major industry players. As a voluntary organization, it currently does not make money for its owners and developers. Miners who participate in its proof-of-work consensus mechanisms collect the fees generated in the network. The network is also not looking to move away from PoW and continues to improve the mechanisms.
ETC Vs. ETH (Which Is Better)?
While Ethereum Classic might be the original version of Ethereum, it has not lived up to the leading altcoin network. Listed below are the features of both networks and how they differ when in comparison;
What is ETC Token?
ETC functions as the native token of the Ethereum Classic network, and it powers the network. The network’s miners also receive their incentives in the powerful utility token. Miners receive rewards for validating the blockchain in competition with each other. The block reward decreases with time, with the next drop due at block 15,000,000. Since April 2022, block rewards have fallen from 3.2 ETC to 2.56 ETC. The token has a circulating supply of 134,184,128 ETC coins and a maximum supply of 210,700,000 ETC coins. It is available for purchase and trading on many exchanges, including Binance, Coinbase, and Kraken. Pairs are also available against stablecoins, other cryptocurrencies, and fiat currencies.
How To Buy ETC Token On Binance
ETC has been available for purchase and trading on Binance for a while now. Below are the steps to purchase the token on the platform;
Step 1
In this first step, you will need to sign up. You must submit your correct details and verify them to complete this process. This is because Binance allows only verified platforms to carry out transactions.
Step 2
After the first step, you will need to fund your Binance account. This will enable the purchase of ETC to be very seamless. You can fund your account with a bank transfer or any compatible debit/credit card.
Step 3
After funding, you can then proceed to purchase your token. Click on trade, select ETC from the list of tokens, and enter the amount you want to buy. You will need to confirm the amount and make payments for it.
ETC Price Prediction: Can ETC Reach $100 Again?
While ETH currently overpowers ETC, the latter’s performance has been fair enough. According to CoinMarketCap, the token’s dominance still ranks it among the top 30 best in the crypto market. Its average 24hour trading volume is now around $631,219,249.91 million, with a market cap of $8,056,116,198.51. These are little figures for a token of this stature, but ETC is not one of the most sought-after assets in the market. Security concerns about the network are one of the reasons why investors are not flocking around the token. Its current price of $38.2 is still far from the ATH price of $176.16 it traded one year ago.
However, the token may enjoy a great year considering the current metrics and indices. The developers of the Ethereum Classic network continue to upgrade the network to make it more secure, faster, and scalable. Crypto analysts believe that if the upgrades are positive, they will improve their fortunes. WalletInvestor thinks the token is on a bullish run and will end the year at $67.293. Should that happen, investors’ ROI will be at least 100%. WalletInvestor also thinks it will take five years for ETC to hit its current ATH.
Digital Coin is also optimistic about the future of ETC but doesn’t see it ending in 2022 at $100. The crypto analysts believe the token’s performance will be good in 2022, but it won’t exceed $64.48 in price. Digital Coin’s long-term prediction of ETC is for the token to hit $95 in 2025 and $219 in 2030. However, the most optimistic of these analysts is Gov Capital, which believes that ETC will rise beyond expectations in 2022. Gov Capital sees ETC as a long-term investment that will peak at $79 by December 2022. The crypto analysts also believe that ETC would be peaking at around $246 in 2027. However, while predictions can be great, crypto assets are still volatile, and anything can happen. The advice to investors is to commit funds they can lose to crypto assets.
Conclusion
Ethereum Classic is a decentralized network that uses smart contracts to run decentralized applications. The network came into existence due to the disagreement of some developers concerning the operations of the then Ethereum blockchain. However, in comparison, Ethereum is stronger than the network. Its token- ETC, is available for purchase on many exchanges, including Binance, and Coinbase. While crypto analysts are optimistic about its future, the chances that it may hit $100 in 2022 are very slim.
