Ethereum Classic is a fork of Ethereum. People who closely observed the crypto world in 2016 know about the Ethereum hard fork. What is dramatic about the happening is that the once-vaunted “code is law” philosophy has been broken, pushing major waves in the crypto world. This post is all about ETC price analysis and its battle with Ethereum.
ETC Price Analysis: What is Ethereum Classic?
The DAO (Decentralized Autonomous Organization) was the first significant project to utilize the Ethereum blockchain’s smart contracts. It was a decentralized venture capital fund controlled by investors. The investors accepted the DAO token in a token sale, which provided them voting privileges. Investment suggestions could be made, which the investors voted on.
If a bid achieved 20% of the entire voting power (DAO token), the needed ethers were automatically transferred to the smart contract of the backed project. All ether created by the backed project came back to the DAO investors. About 12.7 million ethers were collected during the token sale, which reached approximately $150 million at the time.
An attacker discovered a bug in the code that permitted him to rob 3.6 million ethers from the DAO smart contract. The harm amounted to around $70 million. The Ethereum community did not like to let this sit and fight. Many people desired to keep the group in order not to break the fundamental principles of “Code is Law”, while others, mostly hurt, argued for a hard fork and liked to fix the original state. In the end, the decision was taken to do a hard fork.
In other words, Ethereum Classic is a decentralized network that utilizes smart contracts to run decentralized applications. The network started to function in 2016 due to a hack of The DAO. DAO is a smart contract running on the Ethereum network. Like Ethereum, it is an open-source and blockchain-based circulated cryptocurrency that operates on smart contracts. It is identical to Ethereum because they convey the exact source and common origin.
Like specific blockchain networks, its use cases contain registering transactions of value. Yet, its essence is that it can also be utilized as a distributed machine to operate self-executing smart contracts. These smart contracts are autonomous and do not need third-party interference or enforcement. According to its developers, the network is the endurance of the unchanged record of the initial Ethereum chain. The network also assigns DApps under it to allocate their tokens, including NFTs. ETC is its native and utility token.
ETC Price Analysis: Impact of Hard Fork On the Ethereum
Contrary to anticipations, the old blockchain did not fail but persisted by the part of the community that was against the hard fork. The new Ethereum and the old Ethereum Classic were completed. The major developers near Vitalik Buterin persisted to create the new blockchain.
The incident basically questioned and argued the “Code is Law” philosophy. To this day, the DAO hack puts a precedent in talks of blockchain governance.
ETC Vs. ETH?
While Ethereum Classic might be the earliest arrangement of Ethereum, there are discrepancies. Listed below are the characteristics of both networks and how they vary when in comparison:
- Popularity: It is worth stating that both networks presently deliver smart contracts. Yet, in terms of popularity, Ethereum is presently more popular than the Ethereum classic. Ethereum has most Defi projects, delivering crypto users different customized services. Ether is also the popular altcoin for crypto investors, as it persists to compete with Bitcoin.
- Scalability: In terms of scalability, Ethereum also beats ETC. Ethereum Classic is one of the most lifeless blockchain networks, as its 15 transactions per second rate is little. On the other hand, Ethereum currently holds 30 transactions per second. When the advancement to Ethereum 2.0 finishes, the network may endure up to 100,000 transactions per second.
- Security: Between 2019 and 2020, Ethereum Classic was hit by numerous “51% attacks,” as security is one of the constraints of the network. This attack guided to the hacker gain authority over the network’s influential computing strength, with millions of dollars hauled away. Ethereum’s network is admiringly safe, with little or no attacks encountered.
- Token Market Value: In comparison, Ether is more valuable and popular than ETC. Ether’s market capitalization also thwarts that of ETC by more than 4,000%. This illustrates the extensive void between both networks, despite the resemblances. Yet, while Ether’s total supply is unlimited, ETC’s total supply is 210 million coins.
The resemblances between Ethereum Classic and Ethereum would form the beliefs that both networks work the same way. Yet, while resemblances exist in their networks, they function slightly differently in some spots. Like Ethereum, it depends on the proof-of-work consensus mechanism. This implies that its users globally tie the network by operating hardware and software to confirm its transactions.
ETC Price Analysis
At the time of writing this, the ETC price is sitting at $24.53. In the last seven days, the ETC price has increased by almost +12.1%.
It is a bit difficult to determine what a good investment is in the current market scenario. If you’re looking for capital fancy, you’ll be satisfied with current small price waves, such as the one that occurred to ETC in the past week (12%). Yet, if you choose to invest in endurable and scalable projects that can thrive in the long term, you might prefer other projects.
Two weeks ago, the Bitcoin price dropped to almost $27K, and Ethereum Classic bordered the $16 mark. Since then, the price has jumped quite a bit. However, with Bitcoin still moving between a price range, the altcoin market has not started a recovery. The anxiety in the market is still healthy, and marches are for selling. As mentioned earlier, at the time of writing this, the ETC price is sitting at $24.53. Ethereum Classic has resistance above at $25 and $27.87 and supports below at $20.33 and $15.47.
Yet, the token may relish a wonderful year viewing the current metrics and indices. The developers of the Ethereum Classic network persist to boost the network to make it safer, speedier, and scalable. Crypto analysts believe that if the advancements are optimistic, they will enhance their wealth. The token could be on a bullish run but only time will tell.