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Why is Ethereum Classic Depressed (When Did Ethereum Classic Come Out)?

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Why is Ethereum Classic depressed? Why is Ethereum Classic depressed?The blockch

Why is Ethereum Classic Depressed (When Did Ethereum Classic Come Out)?

Why is Ethereum Classic depressed? Why is Ethereum Classic depressed?

The blockchain market has always been the area of ​​concern for Bitcoin and cryptocurrency investors. When Ethereum Classic reached its peak in December 2017, its market value exceeded 40 billion US dollars. However, by early 2018, Ethereum’s price had dropped by over 99%, and to this day, the price of Ethereum Classic has dropped by nearly 20%.

So, what is the reason for the current depression in the price of Ethereum Classic?

1. What is ETH Classic?

Ethereum Classic (ETC) is a new blockchain protocol created using a smart contract platform called “programming language.” It uses a consensus algorithm called EIP-1559 to verify transactions, which is considered a branch of application code running on the Ethereum network. According to official information, this technology is open-source software used by developers and developed by ConsenSys.

In simple terms, the Ethereum community has been discussing using Ether as collateral. However, we are currently in a very awkward position: we cannot understand what kind of solution they really want. Therefore, these solutions require extensive testing to be realized and successful.

2. Why doesn’t Ethereum Classic appreciate?

Many people ask this question because Ethereum Classic is an early network and its performance is very poor. Therefore, Ethereum Classic’s high costs make it difficult to distinguish its security and scalability from other competitors, and it is easily affected by potential user sell-offs – especially when users start selling their tokens, the price of Ethereum Classic will quickly decline, putting pressure on miners.

Actually, for ordinary people, it is difficult to buy Ethereum Classic tokens in a simple way, but if one day Ethereum Classic can surpass the total value of Bitcoin, most people will not be able to compete in the market.

Why pay attention to the underlying blockchain technology of Ethereum Classic?

1. Efficiency

The main application of Ethereum Classic is a payment system on the Ethereum chain. It uses a proof-of-stake model instead of a POW mechanism. It is supported by a blockchain network operated by many independent entities. This means that the Ethereum blockchain can handle various complex tasks and complex proof-of-work processes.

2. Rapidly growing gas fees

Since the end of 2019, Ethereum’s gas fees have skyrocketed. At that time, the Ethereum network processed up to 200,000 transactions per second, or even more. However, with the development of time, gas costs have risen to historically high levels. Although Ethereum’s transaction speed is much faster than Bitcoin, network congestion may also result in more cost expenditure.

3. Slowly growing transaction fees

In the past few months, due to the prosperity of DeFi and the increasing maturity of the Ethereum ecosystem, some users are looking for cheaper fee solutions. For example, the recent Ethereum Classic 2.0 upgrade includes a new feature called “light client scalability.”

When Did Ethereum Classic Come Out

When did Ethereum Classic come out? When was it launched? There is currently no exact timetable. From the end of last year to the beginning of this year, developers have been studying this thing (Ethereum Classic), and now there are various projects and teams doing similar things.

Is Ethereum Classic’s code open-source software? Or does it issue tokens as a medium of exchange or only for paying fees? These have always been concerns for everyone. So today, let’s talk about why so many people are interested in EIP-1559. 1. ETH2.0 Phase 0 is scheduled to launch on February 15, 2021, which is less than a year away. But the mainnet upgrade was completed soon. In February, the final test network specification v1.0 was released before the launch of the mainnet, but no formal release date was given. After the launch in March, some improvements were made, including reducing the gas cost of validators and increasing the block size limit. Before the end of April, the official actively promoted the research work of the community consensus mechanism because they hope to see more on-chain applications realize blockchainization, as mentioned in the Ethereum 2.0 roadmap. (An explanation needs to be added here about the “scalability” idea recently released by Vitalik Buterin) On May 18th, Ethereum’s founder, Vitalik Buterin, stated that in the first quarter of 2020, I predicted that it would be Ethereum’s second-layer expansion plan.

So can this upgrade solve these problems? First of all, if Bitcoin and other cryptocurrencies can be combined and used through existing methods, transaction costs can be greatly reduced, and scalability can be improved. Secondly, for miners, it is possible to use current inefficient mining technology for arbitrage. Finally, as more and more mining machines join the Ethereum ecosystem, many new mining hardware manufacturers will choose to participate, such as Bitmain’s Antminer S9, Canaan’s A16Z, etc.

Of course, this can also bring more convenience to users. After all, Ethereum is now a very poor product in terms of performance, although some small-scale computing power is indeed higher, but Ethereum’s operating speed is far behind other mainstream devices, so there is still a lot of room for development.

In addition to the above, the development trend of Ethereum is also very good:

1. The total staking amount of Ethereum continues to rise;

2. The average confirmation per second on Ethereum is also increasing, which also means that the number of nodes on Ethereum continues to rise.

3. Ethereum 2.0’s beacon chain is expected to be completed in late June of this year and will undergo a major adjustment in early July.

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