Will ETC production reduction and ETH2.0 merger bring new hope to Ethereum Classic?

Preface

From 2003-16 to 3-23, ETC25.6USD rose to 02.04 USD, with a maximum increase of 487.65%, becoming one of the few highest prices in recent times. An important catalyst.

The cryptocurrency space is growing rapidly, with many new players entering the space. In the next few hours, some people noticed a blockchain project, and some people noticed the Ethereum Classic block.

Many people may not think that Ethereum is a complete product of Ethereum without thinking about it.

Few people think that the relationship between "Ethereum" is like the classic relationship between "Bitcoin-Bitcoin Cash" - the difference is that Ethereum Classic Ethereum Blockchain, launched in 2015, is the world's longest-running smart contract.

1. Project Introduction

Ethereum Classic is an open source, blockchain-based Internet computing platform. Its virtual machine with Turing machine is a perfect virtual machine that can execute scripts using the network.

To prevent paralysis, the computing power of the supplier is rewarded. Transactions of multiple transaction fees will be given priority.

Ethereum is a blockchain formed by a fork of the original Ethereum blockchain. After the network hard forked, the old fork became Ethereum Classic and the new fork continued to be called Ethereum.

1.1 The Origin of Ethereum Classic

In June 2016, the Ethereum blockchain was running for 28 days to build a community, TheDAO was the 20th community of the blockchain. It announced and funded a crowdfunding project. At that time, 120 Ethereums were raised, which was almost 14% of the number of Ethereums at that time, with a value of 1.50 trillion, which was more than 100 million US dollars.

36. 36 coins, after being agreed upon, were publicly issued in the cryptocurrency market through smart phones and immediately received the public's expectations. Therefore, before the coin house can obtain any business terms at any time, the hacker cannot get 360 ether coins to do. This gives the coin house a solution to discuss.

Community members made three suggestions:

1. A soft fork, which is a way to attack any network, means that all blocks containing transactions that move stolen ether will be detonated, accompanied by a "Denial-of-Service Attack" attacked, where miners cannot connect to the entire service range in many ways, and the entire network or network users cannot use machines or network solution resources, and it also requires network solutions to have an impact.

2. In this regard, the underlying rules that are not in the code cannot be changed once they are completed. Otherwise, new interactions with the blockchain or the network cannot be made in any way.

3. Inaction exemplifies the idea that code is law . The essence of blockchain is to believe in the value of a centralized network that cannot be tampered with after confirmation by the network.

Some members of ETH, Ethereum should perform a hard fork to reuse the misappropriated, and perform a hard fork to cause theft, so it is necessary to reasonably share this matter. Other hard forks occur, so the possibility of the 3 million ETH being stolen must be acknowledged.

Ultimately, the chain networks are divided into different categories depending on the community:

• After gaining more than 5% of the community, the new chain that implemented the hard fork retained the name Ethereum and has been in circulation to this day.

  At block 1,920,000, due to the success of the hardware, the very stolen post-fork code on the chain, the 99 Ethereum team’s status on the 1000th blockchain, and the computing power supported by the design on the normal execution chain were transferred to the new chain of the hard fork, which is now the Ethereum Smart Chain.

• As an old chain, it was retained and operated at the insistence of some developers and community members and was renamed Ethereum Classic.

  At block 1,90,001, the unit originally predicted that the unclassified discovery chain would disappear within hours, and there were continuous industrial and mining operations to maintain the old chain, while the over-the-counter maintenance mines of the old chain provided value to the old chain, so Ethereum Classic was born. Although the two chains took different paths, they shared the same blockchain before the hard fork record (i.e. before continuing to block 1,920,000).

Little Hacker Episode:

As of 2022-03-24, the attacker's wallet still holds 3.36 million $ETC. At the end of 2016, only 280,000 of his $ETC were transferred and converted into more than 100 $BTC (now the attacker's wallet has 50 ETC left after donating one $2,000 ETC).

In a few minutes, the liquidity of DA, in a bull market for a period of time, the motion worth the dollar, the real value of the past, once, once, people thought it was the most pending currency.

After the DAO incident, after technical analysis and follow-up investigations by many select workshops, it was possible to discover this vulnerability and launch an attack. It is very likely that the following people in the Ethereum development team voted internally, and they passed the vote to "get out" the attacker.

1.2 Team and Foundation

ETCDev is composed of software engineers and experts from different regions and departments. They work full-time on multiple core ETC projects, including ETC client Geth, Emerald SDK/Platform, SputnikVM virtual machine, and sidechains. They work at the forefront of blockchain development and research.

At the 2018 New York Consensus Conference, the infrastructure platform of the "Ethereum Classic Lab" jointly annotated by Foxconn Technology Group (HCM), Digital Finance Group (DFG) and Digital Currency Group (DCG) was officially established, with an initial funding of 50 million US dollars.

1.3 Related major events

• 2015-07-30, Ethereum released the final version: Vitalik Buterin and the Ethereum Foundation created a complete smart contract platform based on the blockchain.

• 2016-04-05, TheDAO project was created: Slock.it designed TheDAO Ethereum contract, and the security audit was completed by Dejavu.

• On June 17, 2016, due to the theft of assets: about 30% of the Ether raised through voting crowdfunding was stolen from the DAO project on Ethereum. At that time, Ethereum worth about 50 million US dollars was used by hackers to transfer a large amount of funds to the "Child DAO" contract controlled by the hacker.

• 2016-06-2, White Hat Hacker Group was established: A hacker group calling itself "White Hat Hacker Group" acquired 7O7's funds, but the remaining 30% needed to be retrieved layer by layer.

• 2016-07-20 Fork Success: The community started a discussion on the creation of the Red Tower on the forum, which eventually led to a hard fork that split Ethereum into two. The first block of Ethereum was successfully created. From then on, any future blockchains of the Ethereum blockchain will not be updated or upgraded with ETC.

• On August 15, 2016, the Ethereum Classic community growth network was rebuilt: through the efforts of the team and community members, the price of $C tokens began to gradually spread to the Ethereum Classic community.

• 2017-02-20, ETCDEV team was established: ETC’s long-term contributors and volunteer team was renamed ETCDEV.

• 2017-03-01 New monetary policy was adopted: adopt a classic community, adopt a similar monetary plan in the classic community, and issue a currency similar to Bitcoin, including limited currency.

• On March 17, 2020, Ethereum Classic reduced its block production: the reward was reduced from 4 ETC to 3.2 ETC.

• 2020-06-02, Ethereum Classic Hard Fork Upgrade: According to the hard fork upgrade officially released by Ethereum Classic (ETC), an emergency occurred. Some node operators failed to update the node operation version in time after the hard fork upgrade on 2020-06-01, causing huge problems in block synchronization and a hard fork.

• 20021110, Attack Task System: During July-August, Ethereum recently obtained its third 51% due to the decline in costs. This, the ETC block has established a system called MESS, and the challenge cost is very expensive.

• 2022-02-13, Mystique hard fork was successful: ETC Mystique hard fork was successfully activated at block 14,525,000.

1.4 Realistic Development

From an ecological perspective, whether in terms of the richness of on-chain applications, assets or number of users, ETC is very difficult to compare with the emerging industrial chains in the market.

At that time, in the nearly one week of OKEx, the number of C's active transactions per day remained around 30,000, and the daily transaction number was about 60,000.

According to the data from decentralized blockchain platform Lama, the top five public chains in the total locked value ranking are Ethereum, Terra, BNBChain, Avalanche and Olana, while ETC is circled at the back, ranking in the 80th place.

As a "is the law" platform that respects "is the law", the ETC blockchain code has produced multiple blockchain projects in recent years. At present, there are projects such as Shangshang DEX, HebeS Trial Aqua Bank, and HebeS. There are also multiple NFT projects on the ETC chain, including ETCpunks, Lazy Lions, etc.

1.4.1 Hash power situation

The computing power of the Ethereum Classic network is the combined performance of all miners in the network. As of 2022-03-24, the computing power of the Ethereum Classic network is 27.30TH/s = 27,298,794,869,938 h/s. On average, 14,785,810 blocks are generated per block, and the block generation time is 13.1s, mainly distributed in Europe and the east and west coasts of North America.

1.4.2 Position data change chart

In the crypto market, ETC has seen unusual movements. On 202-03-1603-23, $ETC rose from $25.6 to $48.04, with the highest period being -87.65% of the lowest period, becoming the most popular cryptocurrency recently. The upcoming production cut is obviously an important catalyst for this wave of rise.

2. ETC token production reduction mechanism

EC IP 1011011 re-issued on December 11, 2011 reformulated the issuance definition of ETC as follows: Height 50 ... The change in the 000 000 0000 000000000000 USD rate is estimated at 2.11$ETC, and the maximum will not exceed 3$ETC.

Statistics show that Ethereum Classic will reach the level of Bitcoin in 202.

The typical output of Ethereum before the production cut was 0-0-17-17 USD, and the reward was 20-0-0-20 USD ETC. 424 production cuts, the cryptocurrency asset rate was 3.123.00 USD before the production cut 1 on the black market, falling from a high of 13.2 USD to a low of 3.3 USD.

According to data, it is expected that 5 ET will enter the Tianhou industry chain, and 3 ET networks will be used for 3 C 15,000 C 15,000, 520, 520, and 4 C 15,000, reducing production by about $ETC20%.

This means a reduction in the ETC ecosystem, but the actual circulation will be affected by the expected market cycle. In the long run, the supply value per unit quantity is similar to the output value of BTC. Among these products, ETC will become one of the investment products favored by users.

3. ETC or ETH

3.1 Consensus Mechanism

The daily operation of the consensus mechanism , the cluster, is participated by Ethereum participants. The community operation management system of multiple communities in the world is the operator of the Ethereum Alliance, proving to be supporting the operator of the operator. However, due to the development of the community currency circle, the more and more unfavorable tendencies of those who participated in the "minority consensus" were revealed.

ETH2.% attack vulnerability issue.

Ethereum's consensus can be achieved through class changes, and it can draw on the network power of Ethereum, Ethereum and other factories, and the consensus with consensus is the most suitable type of Ethereum miners, which is considered to be the spouse of Ethereum miners to execute PoW.

Xu Kang, head of ETC Asia Pacific, said that during the consensus conversion process, ETH's computing power will be pulled to other chains, and ETC is the most suitable blockchain for accepting Ethereum computing power.

At present, the ETC official blog has released a mining hashrate migration guide, welcoming Ethash miners whose hashrate is being mined and pointing out that ETC is running a modified version of Ethash, called ETCha miners, and if they migrate to ETC, they will need to upgrade. ETH.

It is believed that the conceptual center of ETH is relatively speaking a systematic result of another tendency and direction. It represents the future.

The D-Tiger team believes that the community model of Ethereum’s vulnerabilities is relatively classic and effective, and there is no network that exists forever that can be compared with the development team. Some of the original developer communities and those who chose Ethereum must have stronger development capabilities and resources than Ethereum.

Technically speaking, Ethereum is a broad smart blockchain, while Ethereum Classic is a traditional programming application. Its security platform and chain link, scalability, wide presentation and expansion problems are still unresolved, which may cause investors to lose confidence in ETC over time.

IV. Summary

The Ethereum Foundation is determined to switch to PoS (Proof of Stake) named Caspers, while ETC believes that according to the technical characteristics of POS, it may cause the rich to get richer and the poor to get poorer in the future, which will bring sexual curtains to users. The core forum of the ETC community cannot accept this. ETC maintains POW, which is also one of the keys to its continued popular network dissemination.

In any case, ETC is not a project that has been joined by a catalyst, but it is not because of the decision-making power of the ecosystem to reduce production. However, whether it is because of the current ecological environment that the project has been developed, the number of chain products and users of Juzhong is far behind that of emerging public chains, because it only reduces entry and does not create demand .

If you want to gain a competitive advantage, you can only do so through further on-chain construction. Currently, the world is dominated by new concepts such as WEB3.0 and Metaverse, but the ecosystem will not give up the public chain of ETC and still focus on its own development.

The opportunity brought by the Ethereum 2.0 merger and its own production reduction may once again give ETC a chance to achieve ecological integration and create demand for users, which is the key to winning the cost competition.