This article is about the future of Ethereum Classic. Ethereum Classic (ETC) is an open-source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts.
What is Ethereum Classic?
Ethereum Classic is the legacy chain of the Ethereum Network which came into existence in 2016 after the DAO incident. As a result, the community disagreed on the proposed hard fork meant to restore the blockchain and reverse the effects of the hack.
Ethereum Classic is a smart contract blockchain with the ability to support dApps just like Ethereum, though its roadmap is beginning to move further away from Ethereum.
Ethereum Classic still operates on a Proof-of-Work model with no plans to switch to the more popular Proof-of-Stake model used by many blockchains although plans are in progress for more scaling solutions.
Future of Ethereum Classic
The future of Ethereum Classic looks less bright than Ethereum since Ethereum is considered the more legitimate of the two networks, especially with the security concerns of Ethereum Classic.
Investors have lost confidence in ETC over the years due to hacks into the system, and until ETC can redevelop its code and software to prevent future hacks, Ethereum Classic may have challenges ahead. However, it remains to be seen how the smart contracts will be developed within the Ethereum Classic project and whether they can be adopted for widespread use.
Gitcoin has decided to work with Ethereum Classic to pay out bounties in ETC. Gitcoin is a popular platform for funding freelance development in the crypto ecosystem and although it's based on the Ethereum chain, the Gitcoin team thought it would be beneficial to include Ethereum Classic a payment mechanism.
ETC can also now be used with Fantom to collateralize their “Collateralized Stable Currency Tokens.” These tokens are similar to DAI, a stablecoin that mirrors the value of the US dollar, and ETC collateralizing them is similar to how ETH works with Maker DAO.
Most of the major development work is happening on the Ethereum network.
Also, Ethereum Classic experienced a 51% attack in 2019 as well as in 2020. which definitely reduced the number of projects looking to build on their blockchain.
Despite the attack, however, Ethereum classic may still serve a major role as a decentralized smart contract platform in the future. We'll consider what this role could be at the end of the next section.
Goals of Ethereum Classic
Since the split, there have been many upgrades and improvements to the Ethereum Classic project. The goal of the project continues to be working toward becoming a global payment network using smart contracts that can function without centralized governance.
As with other cryptocurrencies, Ethereum Classic will likely continue to strive to be a digital store of value, meaning it can be saved and exchanged while retaining its value. The digital store of value for crypto includes its purchasing power that can be quickly turned into cash or used to buy another asset, similar to money.
Bottom Line
Ethereum Classic is less popular than Ethereum but ETC is still trying to continue its crypto journey with the developments and goals. So, if you are interested in Ethereum Classic, this is about the future of Ethereum Classic.
