Trade Ethereum Classic to BTC on Beaxy

Ethereum Classic is an open-source platform for running smart contracts and facilitates the building and deployment of decentralized applications (dApps). The Ethereum Classic network, and its native currency, ETC, offer similar features and use cases to Ethereum. It has remained in the shadows of the rapidly growing Ethereum since the hard fork, however, with the backing of prominent individuals like Barry Silbert of Grayscale, and developments such as Google adding BigQuery support for Ethereum Classic, the network continues to be a force. More recently, Ethereum Classic has entered the decentralized finance arena following a partnership between Ethereum Classic Labs and Fantom. The DAO hack took place in 2016 and resulted in hackers making off with more than 3,600,000 million ether tokens. The community that is now Ethereum believed that the transaction should be reversed as it was clearly malicious. The group that now supports Ethereum classic felt that reversing the transaction was not in line with the fundamental philosophical beliefs that digital assets should always remain immutable.

Smart Contracts Smart contracts are the primary technological innovation of the Etherum Classic platform. They give developers the ability to convert a standard contract into a programmable set of rules.

Smart contracts can operate independently of each other or you can arrange multiple smart contracts to be dependent on each other. In the latter case, an action that triggered a move by one smart contract could be set as the catalyst to execute another smart contract.

There are three essential pieces to a smart contract. First, the people or parties involved in the contract program their terms of the agreement into the contract. Second, there must be a clearly defined subject of the agreement that acts as the basis of the interaction for the parties on each side of the contract. Finally, the smart contract must have specific terms that can be programmed in mathematical terms.

In order to mine Ethereum Classic, you will need: Ethereum Classic wallet Before you begin to mine Ethereum Classic, set up a wallet. Be sure that the wallet is ETC compatible and not built specifically for Ethereum (ETH) or Bitcoin (BTC). Graphical Processing Unit (GPU) For mining Ethereum Classic, you will need to install a well-balanced number of GPUs to make sure your electricity costs are too high while still have enough computing power to find the solution needed to earn ETC tokens through mining. Ethereum Classic mining software To select the right mining software, decide if you would like to mine the coins with only your computer power or do you want to lend your computing power to a pool of other miners. Mining by yourself will significantly reduce your chances of mining a block but you will receive a larger reward if you do. By entering a mining pool you have a much better chance of generating income but you will receive ETC tokens in smaller increments. Once you decide which tradeoff is best for you, download the software accordingly.

Investment Risk Ethereum Classic is a popular digital currency and has average volatility relative to the rest of the cryptocurrency market. The value of an ETC token can change drastically in a short length of time. This means that ETC is a volatile asset relative to all asset classes. An asset with higher volatility is considered to be riskier. Digital assets don’t have the liquidity of the stock market, whenever there is a large buy or sell order the price will reliably make a significant move. Security Risk Ethereum Classic’s, like most digital currency, has security risks that stem from taking custody of the asset. Since you are managing your wallets and private keys, this creates an attack surface. It is important to reduce your attack surface as much as possible. You can do so by holding your Ethereum Classic in a wallet that is not connected to the internet such as a cold storage wallet. This requires a hacker to get your private key before they could gain access to your wallet. When using a wallet that is connected to the internet, a hacker may only need your password to a website in order to steal your Ethereum. By forcing a hacker to guess your private key you make it nearly impossible for them to access your wallet. Regulatory Risk Ethereum Classic has regulatory risks because legislative bodies across the world have not yet authored concrete rules about cryptocurrency. Ethereum Classic can be used to launder money, this causes governments to be skeptical of digital assets. Because of this, there is a possibility that governments could apply unusually harsh regulations for using or owning digital assets like Ethereum Classic. They could even ban the digital currency outright and make its use or possession against the law. This is a risk as any such action taken by a powerful nation could negatively affect the value of the Ethereum Classic blockchain.