Yet, few in the digital currency arena have comprehended its actual value. True, it has its pros and cons. Nonetheless, investors continue to be attracted to it! If you are interested in bitcoin trading, check Brexit Millionaire
An Introduction to Ethereum Classic
The birth of the Ethereum Classic is an interesting one! Despite all security measures in place, someone managed to hack into the Ethereum blockchain. Therefore, it became necessary to have an alternative in place. This was an Ethereum Classic.
Ethereum Classic is an open-source blockchain. It is also a decentralized application. It permits the usage of smart contracts for initiating business deals.
Not all members of the Ethereum community were happy about this turn of events. Some wanted the network’s affected users to receive compensation. Others did not. Therefore, the blockchain split up.
Special Features of Ethereum Classic
- A greatly active team of miners oversee Ethereum Classic They have different ideas regarding the development of this blockchain. They refuse to allow its forking. Therefore, it is immutable.
- The blockchain’s native token is ETC. It can participate in all kinds of transactions.
- Smart contracts are in vogue. They refer to if-then conditions or agreements, outlined in lines of codes. The execution of these contracts is automatic.
- Miners provide essential security for the Proof-of-work (PoW) consensus method. These miners keep a vigilant eye on transactions occurring on this blockchain. Whenever necessary, they produce and add new blocks.
Advantages of Investing in Ethereum Classic/ETC
Despite not being as much in demand as Ethereum (ETH), Ethereum Classic has its pros.
- Like Ethereum, Ethereum Classic also operates in a decentralized atmosphere. No expensive third parties or intermediaries may involve themselves in the peer-to-peer purchases/sales/exchanges. Similarly, restrictive governments have no role to play in these transactions.
- Ethereum Classic is the unchanged/immutable version of the Ethereum blockchain. Therefore, enthusiasts refer to it as the authentic/original/genuine Ethereum.
- Decentralized applications and smart contracts are integral to Ethereum Classic. Therefore, users may employ it across diverse industries.
- The ETC token is more affordable than the ETH one. Therefore, it is a boon for beginners!
- Regarding capitalization rating in cryptocurrencies, ETC stands in the list of Top-30.
Disadvantages of Investing in Ethereum Classic/ETC
Nothing is perfect! Therefore, Ethereum Classic displays some cons too.
- Ethereum Classic does not invite much interest from developers or the Ethereum community.
- It has no backward compatibility with Ethereum. In other words, ETC does not get along with previous software that still supports Ethereum.
- Parity Technologies are almost 100% owners of the Ethereum Classic platform. This platform takes care of ETC projects. Therefore, investors are concerned about ETC becoming centralized, instead of remaining decentralized.
- The ETC token is vulnerable to attacks, for it does not have much security. Therefore, people are not willing to pay high prices or high interest rates for it.
- Over 50% of attacks at various times have led to Ethereum Classic gaining a dubious image. Investors will always have fears of frauds and insecure transactions.
Investing in Ethereum Classic
True, Ethereum Classic has its risks. Nevertheless, it offers several advantages too. Seen together, the advantages seem to outweigh the disadvantages.
To begin with, Ethereum Classic is still a favorite with many investors across the globe. In fact, ETC ranks amongst the most popular 100 coins in the world. Then again, the community that supports it, does so, because of ETC’s immutable behavior. They staunchly believe in the Code of Law principle.
Whether novice or experienced, an investor/trader finds it easier to cope with Ethereum Classic, than with Ethereum. The ‘reward’ factor is another attraction. Investors and miners are fascinated with this aspect. As they continue to gain rewards, they realize that Ethereum Classic can only increase in value, over time.
The transitioning of Ethereum Classic from Proof-of-Work to Proof-of-Stake, is a welcome measure for many. Reputed cryptocurrency exchanges make ETC available to the public.
True, it has received the label of Zombie coin, due to the heavy number of attacks on it. Nonetheless, it is still alive and kicking in the cryptocurrency world! Even its developers feel that they can improve upon its security features in the future.