Ethereum Classic Investment Analysis

Ethereum Classic is blockchain that allows you to create smart contracts and run applications that cannot be tampered with, thanks to its decentralized nature.

This ground breaking technology has been created when a smart contract built on top of the Ethereum blockchain, the Digital Decentralized Autonomous organization called “The DAO”, was hacked in June 2016 about 80 million USD in ETH funds have been stolen, and a month after the community decided to vote for a hard fork and create an independent.

The vision behind Ethereum Classic is to preserve the technology used to run Ethereum, with its added decentralization and measures to prevent external agents to tamper with the fund transfers, censorship, or fraud. The DAO attack and it’s consequent series of litigations and frozen accounts have shown the soft belly of a centralized system, and the Ethereum Classic development team is focused on avoiding history from repeating itself.

The focus of Ethereum Classic’s vision, as defined in the Declaration of Independence from Ethereum that has been released by it’s foundation community, is that Code is Law: once a transaction on the blockchain is marked as valid, it can never be tampered with, nor eliminated from the books; this means that users can interact with the chain blocks being sure that they will be immutable. This opens opportunities that have been unimaginable before Ethereum, such as the possibility of using a public, distributed database to create a legislation that agreements are run and governed by code. In some jurisdictions this can be the exclusive mean to enact laws, in other it can be a system that can be applied as an added layer, on top of the existing legislative state branches.

Since the network remains neutral and it cannot be tampered with by external agents, users that decide to adopt the blockchain to create a smart contract can be reassured of its safety. The transactions are final and applications that are voluntarily run on the blockchain will execute them as instructed, with no reversals or cancellations – unless they have been explicitly coded in that way.

It is important to notice how centralization of intent and lack of transparency would play a major role in destroying such a system. An immutable, yet opaque platform would suffer from dishonesty and favoritism; in the long run centralization can only suffer because of bottlenecks, and attack to the platform would render it useless in a matter of minutes.

The only way to solve such problems is to make sure that the processes of governing the contract must not rely on a single, focal point of failure. Decentralization is key in tackling this complication, and fix the brittleness that vertical, streamlined networks suffer from.

Hierarchies have to be systematically rendered as horizontal and as transparent as possible, so that they are run on a mutual reputation system all parties agree on. Such a platform would enforce open, transparent discourse that can wipe out secret deals and unfair agreements run behind the doors.

More than being run on a ledger like Bitcoin, the immutability, decentralization and zero trust proof of Ethereum Classic make its blockchain more akin to a global computer that cannot be stopped, running irreversible, public processes. This view sets the basis for the ethics that run Ethereum Classics, making it an effective censorship-resistant platform that anyone can trust.

The main critique that the community behind Ethereum Classic moves to the Ethereum Foundation is the way in which they responded to the DAO fiasco. The claim is that Stiftung Ethereum, the swiss organization behind Ethereum, is run by special interests. After the DAO mishap, a significant minority of Ethereum associates and stake holders voted against both the soft and the hard fork proposed by the foundation.

The main complaint is that Ethereum Foundation has been pushing for the creation of a soft fork allowing the blacklisting and censoring of certain transactions, violating the principles that run the platform itself and the ethics behind it and finally rushing the creation of a hard fork that violates the core principles of immutability and untampering of the operations happening on the blockchain.

This set the ethical basis that are behind Ethereum Classic, and lead to the creation of public Declaration of Independence which regulated the split between the two communities and platforms.

The goal of this project is to make sure that the original Ethereum blockchain can survive, and that people who disagree with both how the DAO drama has been managed by the Foundation and the direction where the Ethereum project is headed to.

To achieve such a feat the original code has been forked, a new ETC ticker symbol has been applied and developers have begun to fork all the clients and social media outlets, to make sure that the two communities can coexist without harassing each other. Miners have been asked to support the fork, in the hope that the rise in mining difficulty wouldn’t scare them off, and traders have been reassured. The main problem when such forks happen is that the spinoff coin that is generated can create doubts in the community, but the strong ethical background of Ethereum Classic guaranteed that users and merchants looking for a solution that is tamper and censorship resistant could find hope in the new platform.

Exchange markets replied well to this proposal, Bitfinex and Poloniex are supporting both and permit trading between the two platform. After Bitsquare announced that it would trade ETHC right after the hard fork was confirmed, more exchange markets followed the same route and this gave traction to Ethereum Classic.

Funds in the order of millions, which were previously got locked after the DAO mishap, have been dumped on the market. Even in face of this ETC price kept on being stable, which shows how strong and cohesive the community behind it is.

The creation of an investment trust by the GrayScale company, called the Ethereum Classic Investment Trust, began enabling investors to gain exposure to ETC via traditional means of investment, without having to manage or worry about safely storing the Ethereum Classic coins they are using. This traditional investment vehicle has shares titled to the name of the investor, which will promote adoption by providing financial advisors with the tools, transferability to beneficiaries and structure they are used to.

This investment fund is a robust solution for those who want to invest in ETC in an environment that is supported by trusted service providers, such as Friedman LLP, and in a safe environment that can guarantee safety of storage and strong, multi-factor security.

As usual when it comes to speculation on the future of a crypto currency and blockchain platforms it’s difficult to tell with confidence what is going to happen in the next months; forecasts have to be made by using the available data and plans shared by the development team and the community.

To assess how solid this platform is, we have to remember that its code foundation and the individuals around it are driven by a strong set of ethics; this means that it’s easier to predict how this system is going to adapt in face of fluctuations of the market and the challenges created as mainstream adoption gets closer.

The emission capped around 200 million tokens and the interest in Ethereum by the South Korean and Chinese markets can lead us to mark Ethereum Classic’s resistance zone around 20 American dollars. This stake has been reached and, after a small dip in price in the first days of June, price seems to be consolidated around the 18 USD – 25 USD range. Such price consolidation normally happens when markets prepare for a solid growth in price, and the signs seem to point towards this outcome.

DASH and other alt coins have been easily surpassed as ETC has been solidly keeping its price to about one tenth of an ETH share, surviving the constant pumping and dumping of forked minor coins and Ethereum community’s generally aggressive attitude towards the market evolution of this platform.

As market capitalization of ETC passed the 1.5 billion USD mark, and was awarded on Coin Market Cap as the 5th largest digital currency

Right now the market capitalization of Ethereum Classic is over $1,800,000,000 USD and this platform became the 4th largest digital currency on Coin Market Cap, reaching a high in worth of over 20 USD with a 24h volume of more than 200,000,000 american dollars.

The code base is shared with Ethereum, which just a while ago has seen a rapid increase in price (possibly linked to BANCOR’s ICO) and which will certainly bring ETC up as it skyrockets. When the ETH bubble will pop we’re going to see a general confusion in the market, and people will look for something more trustworthy of Ethereum that can still guarantee a solid platform upon which smart contracts and decentralized apps can be built. That is where Ethereum Classic will shine, and we are going to see a rapid adoption by the mainstream market of this coin.

Some members of the community say that ETC will rise up to a range between forty and fifty american dollars by the very end of summer 2017, with a median price that is probably going to settle around 100 USD by the beginning of late 2018 or early 2019.

By the 4th of August the implementation of ETC will have reached it’s end and this will be right on time to collect new users in despair after the dust of Bitcoin SetWig begins to settle.
2018 is going to be the year when a light client will be offered to Internet of Things and mobile devices, this will increase adoption as companies and exchange markets react to these new implementations. Scalability improvement and sharding towards 1,000 tx per second, together with an improved cryptography system on Sputnik (Ethereum Classic’s new EVM integrated in Classic Geth by the development team around October) and new research on Hybrid Consensus will further increase the stability of this platform.

As big companies and politicians begin publicly approaching Ethereum, the ethical aspects of that platform are going to become apparent to the community and the general audience. The recent talks between Vitalik Buterin with Russian president Vladimir Putin have begun to direct the discussion towards these issues, and the ETH rise against Bitcoin in the last weekend will certainly give more exposure to this type of platforms.

As vendors and merchants that use ETC keep on growing, more people will begin questioning the differences between Ethereum and its Classic counterpart. The development team has already set it’s ethics straight, and they are easily available to anyone curious about crypto currencies. Ethereum’s foundation attitude towards leading its community and the management of risk has already shown its true colors, and an irritable market like the one we are currently experiencing will certainly react to geo political and financial news. ETC’s strong morality will help in offering a strong, cohesive answer to such fluctuations and it can certainly flourish.

Having an investment fund like Grayscale’s is another strong point in favor of Ethereum Classic over other crypto currencies, because it allows financial and tax advisors to operate by using tools and mechanisms they know well. This minimizes doubts and allows increased adoption from competitive areas of the market, giving more exposure to this platform and its benefits as a notary tool.
Smart contracts are the future and, while Ethereum will be the spearhead that will bring more individuals towards blockchain 2.0, ETC will be able to plan strategies and adapt to the market needs.

As Ethereum grows bigger, together with its fees, developers from all around the world that are currently building decentralized apps on Ethereum will find ETC progressively more interesting. With the added bonus of a stronger ethical background and an accent towards personal freedom, decentralization and censure-proof features, this platform will be elected as the best one to use to build tools for the digital future.

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