Ethereum ClassicLearn

What is Ethereum Classic?

  • Ethereum Classic is a decentralized network that supports smart contracts. it had been created by Vitalik Buterin in 2013. Following the DAO hack in 2016, several members of the Ethereum community rejected the thought of a hard-fork to revert transactions (and return funds to the DAO participants), resulting in the split between Ethereum and Ethereum Classic.
  • Ethereum Classic (ETC) parted faraway from Ethereum at block 1,920,000 (July 20th 2016) to retain the first version of the network, reinforcing the blockchain’s core characteristic of immutability. Since its ICO in 2015, Ethereum has relied on Proof of labor (PoW); Ethereum Classic shares its early history with its first (common) block being mined in July 2015.
  • Like Ethereum, the network is fueled by a cryptocurrency named ether (classic). It comprises an open-source, globally decentralized computing infrastructure, which executes programs called smart contracts.
  • Similarly, Ethereum Classic is predicated on an account model to record state changes. It relies on the Ethereum Virtual Machine (EVM) with two sorts of addresses: externally owned addresses (EOAs) and contract addresses that are deployed on the EVM.
  • As of March 2020, Ethereum Classic’s hashrate is far less than Ethereum’s and therefore the level of on-chain activity is additionally inferior to Ethereum’s. With Ethereum getting to part faraway from Proof-of-Work (to introduce PoS with ETH 2.0), Ethereum Classic plans on persisting because the immutable Proof of labor version of Ethereum.

Since the fork occurred in 2016, Ethereum Classic and Ethereum share many similarities:

  • Ethereum Classic is an open-source, globally decentralized computing infrastructure, executing programs mentioned as smart contracts.
  • Ethereum Classic’s supply was pre-mined (72 million). Among these pre-mined ethers, 60 million were sold during an Initial Coin Offering in 2015.
  • Its PoW algorithm is Ethash, an algorithm that was initially designed to stop ASIC mining. Block time features a target of ~15 seconds (with a maximum block size of 1,500,000 gas). Mining rewards are paid at a hard and fast rate of 4 ETC (vs. Ethereum’s 2 ETH) but are going to be reduced within the future to three .2 ETC (at block 10,000,000).
  • Ethereum Classic is (quasi) Turing-complete, but each transaction requires gas, with price fluctuation supported real-time bandwidth use. Hence, transaction fees are a function of storage needs, bandwidth use, and computational complexity. Gas is employed to stop infinite execution of programs; it introduces an execution stopper adequate to the utmost fees set for a transaction.

2. Ethereum Classic’s core features

These core features are almost like Ethereum. Click here to read the complete report about Ethereum.

2.1 Account-based model

In an account-based model, a typical transaction (between accounts A and B) involves the transfer of ethers from one wallet to another: (1) debit from account A (2) credit to account B.

In comparison, a UTXO transaction works as follows: a private gives money and receives change (i.e., retains unspent amount). Ethereum maps all accounts into balances. Therefore, a send operation reduces one account’s balance and increases another account’s balance.

According to Ethereum’s design rationale explanations, benefits of the account model are large space-saving(transactions require one signature and produce one output), greater fungibility(harder to blacklist funds), simplicity(easier to create DApps), and constant light client reference (light clients can read information from the state tree in any specific direction). Despite these advantages, the account model may facilitate double spendings and replay attacks.

2.2 Global state and account structure

At its core, Ethereum Classic may be a transaction-based state machine. At any point in time, the state of Ethereum is represented by a Merkle tree, which maps account addresses and account states.

The state of Ethereum Classic is updated by the addition of every new block. Each block contains valid transactions and is linked to its previous block by its header.

In simple words, a block contains a header and every one valid transactions that are added.

ETCchart1

Like Ethereum, there are two sorts of accounts within Ethereum Classic:

  • Externally owned accounts (EOA) are controlled by private keys and haven’t any code related to them. Individuals use their private keys to perform actions. An EOA only comprises its nonce (i.e., number of transactions sent) and therefore the associated balance (i.e., number of ethers owned by the account).
  • Contract accounts are controlled by their contract code, which is immutable once deployed. additionally to nonce and balance, a contract account also stores its storage hash (i.e., a hash of the basis of the Merkle Tree) and code hash (i.e., the hash of the EVM code for this specific account)

ETCchart2
2.3 EVM and smart contracts

The typical process to deploy a contract accounts on the Ethereum blockchain works as follow:

  • The contract is written during a application-oriented language (e.g., Solidity, Vyper).
  • The code is compiled to bytecode, and ABI is made .
  • These are deployed by a transaction (with gas fees) onto the Ethereum blockchain, after being relayed from nodes.

ETCchart3
The Ethereum Virtual Machine (EVM) is that the computer software (or computation engine) that interprets bytecode instructions for the Ethereum blockchain. Specifically, the EVM handles any smart-contract logic, starting from its deployment to the execution.

Based on 256-bit word format, the EVM features a simple stack-based architecture with multiple data components:

  • Program code ROM: an immutable program with the bytecode deployed for execution of the contract.
  • Memory: a component to store data temporarily.
  • Storage: a permanent component to store data.

Examples of popular smart-contracts

ERC-20 tokens

An ERC-20 token may be a token that implements a uniform interface defined in EIP-20.

Despite Ethereum’s token standards being fully compatible on Ethereum Classic, it’s displayed a way lower level of adoption and interest from third parties.

Auction contracts

Auction contracts are a natural fit a smart-contract on Ethereum/Ethereum Classic. as an example , one can create a blind auction where any EOA can send bid offers to the contract. the very best bidder wins it. An example of an implementation of an open auction is out there within the documentation of Solidity.

3. Economics and provide distribution

Ethereum Classic’s economics rely solely on Proof of labor , following the first ICO in 2015.

Ethereum’s ICO was conducted within the half of 2015 for 60 million ethers (collected in BTC).

Block mining is predicated on the Ethash function, which itself relies on Keccak. Ethash was designed to stop ASIC participation, due to features like memory hardness. However, it’s been gamed and blocks became mostly mined by ASIC devices for a couple of years.

Unlike Ethereum, the entire supply of Ethereum Classic is capped, with an rate of inflation that decays over time. Its total maximum supply are going to be ~ 210-230 million ETC.

About author

Experienced Founder with a demonstrated history of working in the newspapers industry. Skilled in Data Research, Management, Investment Research, Teamwork, and Leadership. Influencing the technology, people, and technical analysis of the Cryptocurrency and Blockchain world.
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