Ethereum Classic - A Platform for Smart Contracts
Ethereum Classic is a platform for smart contracts, with the cryptocurrency (or token) classic ether (ETC). It is different from but related to Ethereum. These brokers provide both Ethereum and Ethereum Classic CFDs. When trading CFDs, the trader does not own any cryptocurrency.
How is Ethereum Classic related to Ethereum ?
Ethereum Classic is a continuation of the blockchain from which Ethereum forked (hence its name). Both are platforms for developing and running smart contracts. They are separate blockchains and can thus develop in different ways. The cryptocurrency for Ethereum is ether with the symbol ETH. The cryptocurrency for Ethereum Classic is classic ether with the symbol ETC.
What are Ethereum Classic smart contracts ?
They are applications which are compiled to run on the Ethereum Classic network, processed by miners, who receive ETC tokens as a reward. The resource cost of running a smart contract on the Ethereum Classic network is calculated in units called gas which are paid for in ETC. These transactions are processed by miners and strored on the Ethereum Classic blockchain, creating a record of all transactions in ETC.
Do these brokers offer the cryptocurrency ETC ?
These brokers do not offer the cryptocurrency ETC, rather provide CFDs, which are based on the value of the cryptocurrency. CFDs allow the trader to speculate on the value of ETC without having to own it. As the trader does not own the cryptocurrency they do not need a wallet to store it and can go long or short.
The Ethereum Classic blockchain is secured using cryptography, hence the name cryptocurrency, using a hashing function called Ethash. This creates a digital signature from data in blocks and is used in the process to discover or mine a new block of data to be added securely (or chained) to the blockchain, and affects the kinds of hardware which is used to mine ETC.
Ethereum vs Ethereum Classsic
- Both are platforms for executing smart contracts.
- Both use the Ethash proof-of-work function
- Both calculate their resource requirements in units called gas.
- Ethereum Classic is a continuation of the blockchain from which Ethereum forked.
- Both use miners to process transactions.
- The cryptocurrency for Ethereum Classic is classic ether (ETC).
- The cryptocurrency for Ethereum is ether (ETH).
- Ethereum Classic limits the total number of classic ether which can be mined.
- Ethereum has not set a limit on the total number of ether which can be mined.
