Ethereum Classic is Establishing Itself

Ethereum Classic, the original Ethereum blockchain that kept its initial rules following the DAO hack and fork, has been drifting apart from its Ethereum counterpart by applying several changes to its protocol and more.

Development

Since it’s inception, Ethereum Classic has already undergone several technical hard-forks. The most recent of which was dubbed “DieHard”. Ethereum Classic values immutability. In fact, it was born on this premise. As the Ethereum Classic official website states:

“We believe the core value proposition of any blockchain is immutability; valid transactions can never be erased or forgotten. Individuals interacting on Ethereum Classic are governed by this reality; Code is Law.”

As so, Ethereum Classic has no plans to move to a Proof of Stake protocol any time soon, given that Proof-of-Work is working as intended and ensures the immutability of the blockchain. The most recent hard fork on the ETC blockchain, DieHard, proves that by removing the Ethereum Difficulty Bomb feature (also known as Ice age). The DieHard fork also implemented replay protection to ensure that transactions on both chains are safe.

The difficulty bomb on Ethereum is set to make difficulty increase exponentially in order to freeze the Ethereum blockchain later this year. Since difficulty is too high, the blockchain would halt and miners would not find rewards. This system was created in order to ensure that miners would not work on both chains (Proof of Work and Proof of Stake) once the hard fork to change to PoS happens. It was put in place to avoid a split like the one created with ETC.

Ethereum Classic’s project coordinator, Arvicco said:

“Now that the most critical technical issues such as difficulty bomb and replay protection are resolved, ETC dev team will start focusing more on longer-term changes, such as monetary policy and improved platform stability and security.”

Although there are no immediate plans to move to Proof of Stake, the ETC community has decided not to follow Ethereum and not to apply its PoS protocol, Casper. Instead, the IOHK has been working on its own Proof of Stake algorithm, dubbed “Ouroboros”.

Charles Hoskinson, CEO at IOHK, has recently announced “the Grothendieck Team”, a new development team dedicated to Ethereum Classic development.

Ethereum Classic Investments

Several companies and individuals have expressed interest in investing in Ethereum Classic and in the projects built on it.

Chandler Guo, a public figure in the blockchain and cryptocurrency mining space has also shown his support for the Ethereum Classic project by pledging 50% of ETC trading fees from CHBTC, one of the largest crypto exchanges in China. Guo has also created the “Chandler Guo fund”, an ETC Angel Investment Fund. His personal website reads:

“I, Chandler Guo, am officially launching an ETC Angel Investment Fund. The minimum investment amount is 10,000 ETC. Fundraising end at 10,000,000 ETC. ChandlerFund only invests in projects launch through ICO on the ETC chain. The investment is set for three years with guaranteed return on ETC. GP charges 20% carry fee on the profit if ChandlerFund’s ETC amount is doubled, otherwise, it is carry-fee free.”

Barry Silbert, Founder and CEO of the Digital Currency Group (DCG), has supported ETC publically through several bullish tweets. Grayscale Investments, a company under the DCG, has recently launched the Ethereum (ETC) Investment Trust, abbreviated to EIT, which will look for Ethereum Classic projects to sponsor. The official EIT website reads:

“The second product launched by Grayscale Investments, Ethereum (ETC) Investment Trust, allows investors to gain exposure to the price movement of Ethereum Classic through the purchase of a titled security.  More details to come.”

The creation of EIT sparked some controversy due to its name which references Ethereum and not Ethereum Classic. It is unclear if the Ethereum Foundation will take any legal action to enforce its trademark rights.

Conclusion

Despite the controversy spawn by Ethereum Classic’s, the project is becoming a dominating force in the cryptosphere. With new developments and capital inflow, Ethereum Classic and the applications that are to be built on it show promise both for end-users and investors.