The Ethereum network has grown exceptionally over the years. This growth has also come with several threats to the smooth operation of the network. Due to these threats that are faced by the network, there was an introduction of a classic version of the currency. After the creation of the Ethereum network, the transactions being executed on the network became facilitated by the use of Ether tokens. However, the Etherium scene experienced a major attack in 2016 where $50 million worth of the currency was stolen due to a hack. This is the event that led to a split in the system and the creation of the classic version, with the aim of making the network more secure. The point of the split in the system was to return the stolen funds from the network to the respective parties. The two systems currently exist simultaneously while offering similar services. Just like the regular Etherium, the Ethereum classic also allows for the creation of smart contracts due to its decentralized nature, the same as its predecessor. This implies that the contracts on the network can be executed without the input of a third party. Smart contracts operate under the same principles of legal contracts in which a contract might be considered due to any form of breach in the agreements.
Peculiarities about Ethereum classic.
Even though both Ethereum and Ethereum classic have next to no differences in the offering of their smart contract services. However, the duo targets the same marketing, resulting in some form of competition between them. Currently, Ethereum has been able to gain more popularity than its counterpart and is described as the more legitimate version of the duo. A second factor that has aided this boost is the cryptocurrency being the second most popular and by extension traded coin in the world after Bitcoin. Another peculiarity about the Ethereum classic is an apparent limitation in scalability. The scalability becomes more apparent when compared to other payment platforms. For starters, the Ethereum classic network can only process 15 transactions per second. Compared to the visa payment system in the world, this number is minute. Although the Ethereum classic network has undergone several modifications and is currently employed in several trading platforms including Bitcoin prime, this is still a major concern for prospective users. This concern is one of the factors responsible for the regular Ethereum climbing in value and appears to be the more legitimate version even though the classic version has value in the open market. The result of these factors is seen in the Chicago Mercantile Exchange allowing for the futures of ether being traded on the platform. This approval is major because prior to this, Bitcoin was the only cryptocurrency that had been approved. The futures are secured by a specific price and maturity date due to their being derivative contracts. This gives investors on the network and hedged outstanding position in the cryptocurrency, either being Bitcoin or Ethereum.
Aim of Ethereum classic.
The available data in the world of cryptocurrency today has shown how the world currently views Ethereum classic versus the regular Ethereum based on the amount of capital being invested into the two platforms. Even though ETH has been proven to have a greater portion of dollars being invested into the platform, Ethereum classic also has a few goals to land.
Ever since the split between the two platforms, several modifications and upgrades have been made to ensure the continuity of the Ethereum classic project. The main goal of the project is to ensure that it becomes a global means of exchange with several smart contracts under it. Just like most of the other cryptocurrencies in the market today, Ethereum classic will continue in the strive to amass value while being traded among parties in the open market.