About Ethereum Classic

What is Ethereum Classic

Ethereum Classic (ETC) is a decentralised platform that runs smart contracts or applications that aim to run exactly as programmed without worrying about third-party interference, downtime, censorship, or fraud. Ethereum Classic represents the continuation of the original Ethereum blockchain post exploit, which resulted in millions of stolen Ether.

A Brief History of Ethereum Classic

The Ethereum blockchain is a single network in which the cryptocurrency Ether was the primary currency that supported transactions. However, in June 2016, a hack stole US$50 million worth of assets. Consequently, the network was divided and hard forked to safeguard it. Ethereum Classic arose as a splintered version of Ethereum's blockchain, with the other being Ethereum itself. According to records before the hack, they split Ethereum to restore the stolen cash to their rightful owners.

Grayscale Ethereum Classic Trust invests exclusively and passively in Ethereum Classic, allowing investors to obtain exposure to ETC in the form of security while avoiding the difficulties of purchasing, storing, and safeguarding ETC directly.

The Ethereum virtual machine (EVM) is a decentralised Turing-complete virtual machine that can run programmes over a worldwide network of public nodes. In contrast to others, such as Bitcoin's code, the virtual machine's instruction set is Turing-complete. Gas, an internal transaction price system, mitigates spam and allocates network resources.

Ethereum Classic allows developers to create and deploy smart contracts that are autonomous, self-executing code blocks that perform certain activities depending on predetermined circumstances.

How Ethereum Classic Works

Ethereum Classic is a cryptocurrency that is almost identical to Ethereum. It is a blockchain that replaces payments and produces smart contracts and apps that users can own, transfer ownership of, and interact with. Allowing the Turing complete programming language implies developers may create automated apps that can be monitored using conditional outcomes.

In other words, the contracts can act without the involvement of a third party, such as a lawyer. Smart contracts are comparable to if-then statements in that if the contract's actions perform, the contract's responding parameters finish. If the contract criteria are not met, a penalty can occur, or the contract can terminate, depending on the conditions agreed upon at the outset of the contract.

Like all other blockchains, Ethereum Classic keeps a complete record of all transactions in a shared database. Furthermore, it keeps track of the most recent status of all smart contracts supported by the blockchain and user balances, which can transfer digitally to another user's wallet. Mining ERC20 tokens, via the proof of work (PoW) mechanism, power all activities on the network.

What is Ethereum Classic Used for

Ethereum Classic makes it easier to execute smart contracts by providing the advantage of decentralised governance.

In Ethereum Classic, lines of code outline an agreement between the buyer and seller inside a smart contract; the smart contract then self-executes based on the contract's terms. Consequently, a central authority is not needed for external monitoring or censoring since the code controls contract execution.

One of the main worries about Ethereum Classic is its possible scalability limits. The network can typically manage 15 transactions per second; however, this is significantly fewer than payment networks like Visa, which can handle thousands of transactions per second. Although Ethereum Classic has undergone several software upgrades, the scalability of its payment systems remains one of its most significant issues in the future.

By crypto.com | Original Link