ETC Ethereum Classic

Key Use Cases of Ethereum Classic

Ethereum Classic is used in various ways, primarily as a decentralized platform for executing smart contracts and decentralized applications (dApps). Here are some key use cases:

• Smart Contracts and dApps: Ethereum Classic facilitates the execution of smart contracts, which are self-executing agreements written in code. These contracts automate specific actions when certain conditions are met, ensuring trustless and secure transactions. dApps built on the Ethereum Classic platform provide various services, such as decentralized exchanges, wallets, and other applications.

• Payment and Store of Value: Ethereum Classic can be used as a store of value, similar to Bitcoin, allowing users to save and exchange it while maintaining its purchasing power over time. It can also be used for payments, with large corporations considering it for settling transactions without financial intermediaries.

• Censorship Resistance: Ethereum Classic transactions are verified by a network of nodes that follow the original Ethereum rules, making it censorship-resistant. This feature allows for the use of Ethereum Classic in decentralized applications that require freedom from central authority control.

• Utility Token: The Ethereum Classic token is used as a utility token for decentralized applications built on the Ethereum Classic platform, enabling users to access and participate in various services and functions.

• Investment: Ethereum Classic can be used as an investment, with its value potentially appreciating over time. However, its market performance is subject to fluctuations and uncertainties.

Practical Applications

• DeFi Platforms: Ethereum Classic supports DeFi platforms like SoyFinance, which offer a range of financial services and tools, including staking and farming opportunities.

• Payment Solutions: Ethereum Classic is accepted by various services such as Alternative Airlines, Travala, and Coinsbee, making it a viable payment option for daily transactions.

• E-commerce Integration: NOWPayments provides tools for businesses to accept Ethereum Classic payments, including eCommerce plugins, payment links, and recurring payments solutions.

Technical Features

• Blockchain and Smart Contracts: Ethereum Classic operates on a blockchain and offers a platform for executing smart contracts.

• Open Source: Ethereum Classic is an open-source platform, with its software code publicly available for scrutiny and development.

• Nakamoto Consensus: It employs a modified version of Nakamoto consensus, similar to the original Ethereum, relying on miners to validate and secure transactions.

• Fixed Supply: Ethereum Classic has a fixed supply of 210.7 million ETC, ensuring a predictable and stable monetary policy.

Pros of Ethereum Classic

• Decentralization and Immutability: Ethereum Classic is a fully decentralized platform that adheres to the principle of immutability, ensuring that the blockchain's history cannot be altered or reversed by anyone.
• Low Transaction Costs: It offers lower transaction costs compared to other platforms.
• Open-Source: The platform is open-source, allowing developers to view, modify, and enhance the code, which contributes to greater transparency and strengthens the platform's security and stability.
• Smart Contracts: Ethereum Classic supports smart contracts, enabling the creation of decentralized applications (dApps) such as Decentralized Autonomous Organizations (DAOs) and stablecoins.
• Store of Value: ETC can be used as a store of value, similar to Bitcoin (BTC), maintaining or growing one’s purchasing power over time.

Cons of Ethereum Classic

• Smaller Community: Ethereum Classic has a smaller community with less activity and liquidity compared to Ethereum.
• Limited Compatibility: It does not always integrate well with other blockchain platforms and dApps, making interoperability more challenging.
• Security Concerns: Ethereum Classic has a lower level of security due to a smaller network of nodes and miners, and it has suffered from several network attacks, such as 51% attacks.
• Weak Governance: The strong decentralization of Ethereum Classic can lead to weak governance, making it difficult to implement changes or updates.
• Lower Market Performance: Ethereum Classic has a lower market performance, including a lower price, market capitalization, trading volume, and liquidity compared to Ethereum.

Founders of Ethereum Classic

Ethereum Classic does not have a specific founder in the traditional sense. It originated as a hard fork of the Ethereum blockchain network, which was originally founded by Vitalik Buterin and his team. The split occurred in 2016 due to a dispute over how to address the DAO hack, with some members advocating for a hard fork to refund the misappropriated funds and others arguing for preserving the original blockchain without modifications. As a result, Ethereum Classic emerged as a separate blockchain with its own community and ecosystem, but it does not have a single founder or a centralized leadership structure.

Investors in Ethereum Classic

Ethereum Classic is a publicly traded cryptocurrency, meaning it is available for anyone to buy and sell on various exchanges. The investors in Ethereum Classic include:

• Individual Traders: These are individuals who buy and sell Ethereum Classic on cryptocurrency exchanges for speculative purposes or to use its network for smart contracts and transactions.
• Institutional Investors: Some institutional investors, such as those participating in the Grayscale Ethereum Classic Trust, invest in Ethereum Classic. This trust allows accredited investors to gain exposure to Ethereum Classic in the form of a security, which can be traded on certain brokerage or retirement accounts.
• Miners: Miners who participate in the Ethereum Classic network by validating transactions and securing the blockchain also hold and invest in Ethereum Classic. They are rewarded with ETC for their mining efforts.
• Cryptocurrency Enthusiasts: Enthusiasts who believe in the principles and potential of Ethereum Classic, such as its commitment to proof-of-work and immutability, also invest in the cryptocurrency.
• Long-term Holders: Some investors hold Ethereum Classic as a long-term investment, hoping for its value to increase over time. These investors may be attracted to its fixed monetary policy and the potential for future growth.

Halal Status of Ethereum Classic

Yes, Ethereum Classic is halal.

Ethereum Classic is considered halal because it is used for valid and plausible services, and the underlying blockchain offers a genuine use case and utility. The ETC token primarily serves as a payment mechanism for transaction fees and smart contract execution costs on the network, and it does not inherently involve any activities that are prohibited by Shariah principles.