Born from the historic Hard Fork event of Ethereum, ETC coin offers a secure and reliable blockchain platform for decentralized applications. Let’s delve into the details of ETC coin, its potential, and challenges to make informed investment decisions.

What is ETC Coin?

ETC stands for Ethereum Classic, an open-source, decentralized blockchain platform that allows anyone to build and use decentralized applications (dApps). Similar to Bitcoin, ETC coin operates on a Proof of Work (PoW) consensus mechanism, where miners compete to solve complex mathematical problems to validate transactions and add new blocks to the blockchain.

The difference between ETC and Ethereum (ETH) lies in their development philosophy. While ETH focuses on scalability and performance, ETC prioritizes immutability and security. ETC is committed to maintaining the principle of “code is law,” meaning that all transactions on the blockchain are irreversible.

The birth of ETC Coin

In June 2016, the Ethereum community was shaken by the DAO hack, a decentralized autonomous organization built on the Ethereum platform. Exploiting a vulnerability in the DAO’s smart contract, hackers stole 3.6 million ETH, equivalent to $50 million at the time.

To address this issue, the Ethereum community proposed three solutions:

• Maintain the status quo: Do not intervene in the blockchain, accept the loss, and consider it a lesson. This option aligns with the “code is law” philosophy of blockchain but causes significant damage to DAO investors.
• Soft Fork: Implement a minor change to the software, rejecting transactions related to the stolen ETH. This option is less invasive to the blockchain but poses security risks.
• Hard Fork: Create a new blockchain, refunding the stolen ETH to investors. This option protects investors’ interests but violates the “code is law” principle and divides the community.

After much debate, the Hard Fork option was chosen. However, this decision was met with opposition from a segment of the community who believed that interfering with the blockchain violated the “code is law” principle. As a result, on July 20, 2016, at block 1,920,000, Ethereum officially split into two chains: Ethereum (ETH) and Ethereum Classic (ETC).

ETC Coin technical information

Below is the detailed technical information about ETC coin, updated to the latest:

Basic parameters

• Name: Ethereum Classic
• Symbol: ETC
• Blockchain: Ethereum Classic
• Consensus mechanism: Proof of Work (PoW) – similar to Bitcoin, miners compete to solve problems and receive ETC as a reward.
• Token type: Coin, mineable
• Block time: Approximately 13.1 seconds – a new block is added to the ETC blockchain every 13.1 seconds.
• Block reward: 3.2 ETC per block – this reward will gradually decrease over time.
• Total supply: 210,700,000 ETC – the maximum number of ETC that will be issued.
• Circulating supply: 142,248,088 ETC (updated October 2, 2024) – the number of ETC currently circulating in the market.

Other technical information

• Hashing algorithm: Ethash – the algorithm used to mine ETC.
• Difficulty: Automatically adjusts to ensure stable block generation time.
• Scalability: ETC is researching and developing solutions to improve network scalability, such as sharding and
• sidechains.

Note

• Technical information may change over time due to updates and upgrades to the Ethereum Classic network.
• You should refer to the official Ethereum Classic information sources for the most accurate and up-to-date information.

Applications of ETC Coin

ETC coin, as the native currency of the Ethereum Classic network, has diverse and potential applications in the blockchain world. Here are some of the main applications of ETC coin:

• Transaction Fee (Gas Fee) Payment: Similar to ETH on the Ethereum network, ETC is used to pay transaction fees (gas fees) for activities on the Ethereum Classic network. Whenever you make a transaction, interact with a smart contract, or deploy a dApp on Ethereum Classic, you need to pay a certain fee in ETC. This fee is used to reward miners, who play an important role in validating transactions and maintaining the network.
• Block Rewards for Miners: TC is the block reward for miners participating in the mining process on the Ethereum Classic network. By using computing power to solve complex problems and add new blocks to the blockchain, miners will receive a certain amount of ETC as a reward. This mechanism encourages miners to participate in the network, contributing to ensuring the security and decentralization of Ethereum Classic.
• Applications in DeFi (Decentralized Finance): Although the DeFi ecosystem on Ethereum Classic is not as developed as on Ethereum, ETC still has potential applications in this area. Some DeFi projects on Ethereum Classic allow users to use ETC to participate in activities such as lending, borrowing, yield farming, and staking. The development of DeFi on Ethereum Classic can bring many attractive investment and trading opportunities for users.
• NFT (Non-Fungible Token): ETC can also be used to create and trade NFTs (non-fungible tokens). NFTs are unique tokens that represent ownership of digital or physical assets, such as artwork, in-game items, or real estate. The use of ETC in the NFT field opens up wide-ranging applications in verifying ownership, trading digital assets, and building innovative applications on the blockchain platform.

ETC Coin mining

ETC coin mining is the process of using computing power to validate transactions on the Ethereum Classic network and receive rewards in ETC. Like Bitcoin, ETC uses the Proof of Work (PoW) consensus mechanism, where miners compete to solve complex mathematical problems and add new blocks to the blockchain.

Common ETC coin mining methods

• Solo mining: You operate your own mining equipment and receive the entire block reward. This method requires a large investment in hardware and technical knowledge but offers high profits if you are lucky enough to mine a block.
• Pool mining: You join a mining pool, sharing computing power and rewards with other members. Pool mining minimizes risk and provides more stable income, suitable for beginners or those with limited investment capital.

Hardware requirements

To effectively mine ETC coins, you need to invest in specialized equipment such as:

• GPU: Graphics cards are the most popular choice for ETC mining. GPUs with at least 4GB of memory and high performance will provide the best mining efficiency.
• ASIC: ASIC miners are specifically designed for ETC mining, offering superior performance compared to GPUs. However, ASICs are expensive and difficult to find on the market.

Steps to mine ETC coins

• Choose a mining method: Solo mining or Pool mining.
• Prepare the hardware: GPU or ASIC.
• Install mining software: There are many popular ETC mining software such as Claymore, Phoenix Miner, NBminer…
• Join a Pool (if choosing Pool mining): Choose a reputable Pool and configure the mining software to connect to the Pool.
• Create an ETC wallet: To store the ETC you mine.
• Start mining: Launch the mining software and monitor the mining process.

Note

• ETC coin mining consumes a lot of energy; you need to consider the cost of electricity before investing.
• Mining efficiency depends on many factors such as ETC price, network difficulty, and equipment performance.
• Always stay updated on changes to the ETC network and mining software to ensure mining efficiency.

ETH vs. ETC comparison

ETH and ETC, despite sharing a common origin, have chosen separate development paths. The key differences between these two coins lie in their philosophy, technology, and community.

Philosophy

• ETH: Ethereum aims for continuous innovation and development, focusing on scalability and performance to meet the growing needs of decentralized applications. They are willing to make changes, even Hard Forks, to improve the network and provide a better user experience.
• ETC: Ethereum Classic, on the other hand, adheres to the “code is law” philosophy, prioritizing immutability and security. They believe that the blockchain is a system that cannot be interfered with, and any changes can cause risks and loss of user trust.

Technology

• Consensus mechanism: ETH has transitioned to the Proof of Stake (PoS) mechanism to enhance scalability and reduce energy consumption. Meanwhile, ETC remains faithful to Proof of Work (PoW), like Bitcoin, ensuring the decentralization and security of the network.
• Platform development: ETH is constantly being upgraded and improved with new features, such as more complex smart contracts, cross-chain interoperability, and Layer 2 solutions to enhance scalability. ETC, on the other hand, focuses on maintaining the stability and security of the existing platform.

Community

• ETH: Has a large and diverse community, including developers, investors, users, and organizations. The ETH community is very active and has a significant influence on the development of the project.
• ETC: The ETC community is smaller but very engaged and loyal to the project’s philosophy. They believe in the long-term potential of ETC and actively contribute to the development of the community.

Potential and challenges of ETC Coin

ETC coin, with its steadfast philosophy and strong community support, is gradually asserting its position in the cryptocurrency market. However, the road ahead is still full of challenges. Let’s analyze the potential and challenges that ETC is facing.

Potential of ETC Coin

• Immutability and security: This is the core factor attracting investors to ETC. Amid growing concerns about blockchain intervention and manipulation, ETC emerges as a secure and reliable option. The “code is law” principle ensures that transaction history will never be altered, building trust among users and developers.
• Strong community support: ETC has a large, enthusiastic, and like-minded community. They actively contribute to network development, application building, and ETC promotion. Community support is a crucial driving force for ETC to overcome difficulties and achieve sustainable development.
• Demand for stable decentralized platforms: In the digital age, the need for decentralized, secure, and transparent platforms is increasing. ETC, with its outstanding advantages, can become an ideal platform for applications in various fields such as finance, supply chain, elections, and data management.
• Compatibility with Ethereum: Although separated from Ethereum, ETC maintains a certain level of compatibility with this platform. This allows developers to easily migrate applications from ETH to ETC, expanding development opportunities for the ETC ecosystem.
• Potential for value growth: Although the current ETC price is still low compared to ETH, with the above potential, ETC can completely grow strongly in the future. The development of the ecosystem, the application of ETC in new fields, and the increasing demand from the market will be the driving forces behind ETC price growth.

Challenges of ETC Coin

• Fierce competition: The cryptocurrency market is becoming increasingly crowded with the emergence of many new blockchains with superior technology. ETC faces fierce competition from ETH, Polkadot, Cosmos, and many other competitors. To survive and develop, ETC needs to constantly improve and upgrade its technology while building attractive practical applications.
• Slow development speed: Compared to ETH, ETC has a slower development speed. This is partly because ETC prioritizes stability and security, not chasing the latest trends. However, if it cannot keep up with technological advances, ETC may be left behind.
• Security risks: Although using the Proof of Work algorithm is considered safe, ETC still has potential security risks. History has proven that no blockchain is completely inviolable. ETC needs to continue to enhance its security system, prevent attacks, and protect users’ assets.
• Dependence on the community: The development of ETC depends heavily on the community. If the community loses faith or no longer supports it, ETC will face many difficulties. Therefore, ETC needs to maintain engagement with the community, listen to feedback, and build the project together.

ETC coin has affirmed its position in the cryptocurrency market thanks to its steadfast philosophy with the “code is law” principle, immutability, security, and a strong development community. However, the cryptocurrency market always has potential risks and unpredictable fluctuations. Before deciding to invest in ETC coin, you need to research carefully, evaluate fundamental and market factors, and determine your own risk tolerance.

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