DataDrivenInvestor
Jul 31
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In this article, I will look at what the “Merge” will mean for Ethereum and Ethereum Classic and the future of cryptocurrency itself.
“If Ethereum fails to scale, then Ethereum definitely failed.” — Vitalik Buterin.
The Merge will unite the ETH’s tenth mainnet, “Shadow Fork,” with the Beacon Chain to solve what is known as the “blockchain trilemma” of providing scalability, security, and decentralization to create a powerful, hybrid blockchain platform.
This Merge will have a significant impact on the cryptocurrency market.
Solving this trilemma is not as simple as it would seem. Months and years of computing and testing must be completed before it can go live to ensure it is seamless and efficient.
For instance, Ethereum will go from 30 TSP to an estimated 100K TSP.
That trilemma is why there are nearly 20k altcoins in the cryptocurrency universe. Each solves one or two portions of the trilemma or provides another unique aspect to power its token.
“Considering the end goal is reducing their carbon consumption by 99.85% — I’d say the effort was worth the time.” — Bitboy Crypto.
Bitboy is one of my favorite YouTube V-Loggers, as he speaks his mind and is concise without much hype.
ETC was created due to the ETH fork in 2016 after the Ethereum network was hacked. The ETH blockchain was created to provide a more secure platform, and what existed then became ETC.
However, it left Ethereum as is, thereby creating ETC.
ETC’s price soared recently in the cryptocurrency market due to the upcoming Merge.
ETC is a Proof-of-Work (PoW) altcoin, as is ETH (ETH), currently. What makes ETC desirable now is the Merge.
ETH 2.0 will use Proof-of-Stake (PoS); therefore, current ETH miners will want to convert to ETC when the Merge is finalized. The computing equipment to “mine” both are the same.
The “status quo” would have you believe that the amount of energy used to mine cryptocurrency will harm the environment. Whereas that is true, how much energy do the banks that charge massive fees use?
Likely more than a bunch of geeks sitting at their computers earning some altcoins. What would these miners do instead of mining BTC, ETH, ETC, and others? Probably playing P2E games, which consumes energy too.
medium.com
In a city of 10,000, there are probably six or eight banks. Since very few use checks anymore, why do we need so many banks?
When I asked about sending $1,500 internationally, I was told by a bank teller that it would cost $50.
Are you serious? I can buy $1,500 worth of USDT, BUSD, or BNB, transfer it to my wife’s wallet, and she can convert it FREE or with a minimum fee, having access to the money within minutes. Bank transfers can take hours, if not days, depending on which country it is going to. Most transfers to small countries in Asia must go through Hong Kong.
Cross-blockchain and cross-platform financial services are already available with many cryptocurrencies at a much lower price than your bank will charge.
For example, using a PayID in Australia and similar services in other countries could provide a means to send money quickly at a penny-pinching price. Granted, first-time users of these systems might have a waiting period for ID verification, but subsequent money transfers are almost simultaneous.
ETC is from the ETH blockchain, which was created early in 2015. It is a decentralized platform that runs smart contract applications that run exactly as programmed to decrease the possibility of fraud or third-party interference.
From a technical perspective, ETC is nearly identical to ETH. ETH is ranked #2, and ETC is ranked #16 by market capitalization at $2.4 billion, according to Coin Market Cap.
The native cryptocurrency of the ETC platform is called “Classic Ether,” with the cryptocurrency symbol ETC. ETC is a decentralized platform running smart contract applications that run exactly as programmed without any possibility of fraud or third-party interference.
ETC is a well-distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM).
ETH 2.0 will use Ethereum WebAssembly (Ewasm) rather than EVM.
“The EVM is a quasi–Turing-complete state machine; ‘quasi’ because all execution processes are limited to a finite number of computational steps by the amount of gas available for any given smart contract execution.” — Gitbook.
Another explanation is this one by Block Geeks:
“A smart contract is a self-executing digital agreement that enables two or more parties to exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the need for a third party. To lay it out in the most simplest way, you can compare smart contracts to a vending machine for complex transactions.”
It is my humble opinion (IMHO) that the vending machine analogy is pure genius! Even if they use “most simplest,” which is “wordy” and sounds kind of goofy.
These executable scripts use an international network of public nodes. ETC also provides a value token called a Classic Ether. The Classic Ether can be transferred between participants, stored in a cryptocurrency wallet, and used to compensate participant nodes for computations performed.
PoW and PoS are two different consensus mechanism algorithms that blockchains use to rule out fraud and deceit. PoW is a widespread consensus mechanism used by blockchains such as Bitcoin and ETH.
Every transaction on the blockchain has a specific entry in the ledger. By checking those entries, you can verify the transaction is legitimate.
PoS is the newer consensus mechanism gaining popularity due to its potential to offer improved TSP, scalability, and energy efficiency.
PoW works by having miners compete to solve complex mathematical puzzles to validate transactions and add new blocks to the blockchain.
#ProofOfWork #Blockchain #BlockchainForBeginners
PoS uses validators (owners) to validate transactions and add new blocks to the blockchain.
The critical difference between PoW and PoS is that PoW requires expensive hardware and consumes a lot of energy, while PoS does not.
As a result, PoS is seen as a more scalable and environmentally friendly solution than PoW.
In PoS, block creators are selected based on their stake in the network. In other words, the more ETC participants own, the greater their chances of being chosen to validate transactions and create new blocks.
Ethereum’s founder Vitalik Buterin assured developers and users that they could use ETC if they preferred PoW. This announcement resulted in a surge in the coin’s value, which is expected to continue rising. This makes ETC a good “buy and hold” investment as the coin continues to gain popularity pending the Merge.
Although there is no guarantee that the ETC price will increase when the proposed Merge between ETH and ETC occurs, it is possible that the cost of both cryptocurrencies could rise as a result of the increased interest and investment in the ETH platform.
If you’re considering investing in ETC, now may be a good time to do so because the Merge is predicted to be complete in September ’22. The prices could continue to soar after the Merge, but many believe the adage, “Buy the rumor, sell the news.”
“The live Ethereum Classic price today is $39.40 USD with a 24-hour trading volume of $5,469,946,959 USD. We update our ETC to USD price in real-time. Ethereum Classic is up 19.70% in the last 24 hours. The current CoinMarketCap ranking is #19, with a live market cap of $5,361,162,843 USD. It has a circulating supply of 136,054,922 ETC coins and a max. supply of 210,700,000 ETC coins.” — Coin Market Cap.
The 210 million max. supply of ETC is slightly more than the circulating supply of 121.7 million ETH, but there is no indication of ETH’s max supply.
ETH and ETC are two different blockchains that have recently announced a merger, which will create “ETH 2.0,” though the symbol will remain ETH. As shown above, ETC’s price has soared as the Merge gets closer.
This is primarily due to the migration of miners from ETH to ETC after ETH announced its shift to PoS. Although there is no guarantee, the value of ETC is expected to continue rising, and it presents a good investment opportunity.
#ethereum #crypto #bitcoin #ETC #ETH #ETHMerge
ETH and ETC are on a roll. ETH has added more than $700 to its price in the past month, going from $1,000 to around $1,750. ETC is up more than 100% in the past month, from around $15.00 to $44.00.
Many believe there is still room to grow for both, though many nay-sayers insist you should take profits. Those decisions should reflect your goals and exit strategy, not what others say or the current market hype.
Many fear, uncertainty, and doubt (“FUDsters”) are hyping more doom and gloom for cryptocurrencies. ETC and ETH are in their scope due to their run-up in price before the Merge.
“I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.” — Warren Buffett
Staking ETH could be profitable on many exchanges, hi mobile banking is paying 11% APY in-kind (meaning they pay in ETH), and Binance pays 10% APY. Try getting that from your local brick-and-mortar bank.
#ETH #ETC #EthereumClassic #Ethereum #bitcoin #Cryptocurrency #fintech #cryptoinvesting #cryptocommunity crypto #investing #trading #blockchain
DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and you should consider anything I write as informational and friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.
Note: This post contains affiliate links. Read my disclosure statement for additional information.
Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Investing, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.
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