What is ETC? [For beginners] A comprehensive guide to Ethereum Classic

"Virtual Currency Information Bureau | Currency Introduction" What is the future of ETC? 🚀 A thorough explanation of Ethereum Classic (ETC)! Even beginners can understand its characteristics and future prospects, as well as price predictions for 2025! Check it out now! #ETC #VirtualCurrency #EthereumClassic

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What is Ethereum Classic (ETC)? Basic information for beginners

Hello, I'm John, a cryptocurrency blogger. I've explained a lot of cryptocurrencies (also known as crypto assets) so far, but this time I'd like to talk in detail about Ethereum Classic (ETC), which has a particularly unique history and philosophy, so that even beginners can understand it clearly. Recently, it seems that more and more people are searching for information using keywords such as "ETC price 2025" and "How to buy Ethereum Classic". If you read this article, you should be able to fully understand ETC, from the basics to its future potential!

The Birth of Ethereum Classic (ETC) and Its Background

Ethereum Classic (ticker symbol: ETC) is actually closely related to the "Ethereum (ETH)" we often hear about. Originally, Ethereum was a blockchain (a technology that links and manages transaction records like a chain). However, in 2016, a large-scale hacking incident occurred in a project called "The DAO" built on Ethereum, and a large amount of funds were stolen.

The Ethereum community was split down the middle on how to respond to this incident. One group argued that "the blockchain records should be rewound to make the hacking damage go away." As a result, a new Ethereum (now known as ETH) was born with the records corrected. However, the other group strongly argued that "the most important principle of the blockchain is 'immutability' (information once recorded cannot be tampered with by anyone), and that even if there has been a hacking incident, records should not be artificially altered." Sticking to this philosophy of "code is law," it was Ethereum that chose to continue maintaining the original blockchain.Ethereum Classic (ETC)

In other words, ETC can be said to be the “prototype” of Ethereum, and there was a dramatic background to its creation.

The problem ETC aims to solve

ETC aims to be censorship-resistant and unstoppable.Decentralized Applications (DApps) – Applications that operate autonomously without a specific administrator,Smart contracts (a mechanism for automatically executing contract terms through a program)It provides a platform for running smart contracts. Since there is no centralized administrator, it has the great advantage of being less susceptible to external pressure or interference. Based on the philosophy of "code is law," it is important to ensure that smart contracts, once deployed, continue to operate as programmed.

Unique Features of Ethereum Classic (ETC)

ETC has several distinguishing features not found in other cryptocurrencies.

True ImmutabilityAs evidenced by the fact that ETC did not roll back records during The DAO incident, the immutability of the blockchain is paramount, which is crucial in guaranteeing the finality of transactions.
Proof of Work (PoW): Like Bitcoin (BTC), ETC uses a consensus algorithm called PoW. This is a mechanism by which miners solve complex mathematical problems to generate new blocks and approve transactions. Although it has the issue of consuming a lot of energy, it is considered to be very secure. In particular, with Ethereum (ETH) moving to Proof of Stake (PoS, a mechanism in which block approval rights are obtained according to the amount of currency held), ETC has become an attractive option for developers and users who support PoW.
smart contract platform: Like Ethereum, ETC is also a platform that can run smart contracts, which allows the development of DApps in a variety of areas, including finance, gaming, and identity management.
Decentralized GovernanceDecision-making and development are carried out on a community-based basis, without relying on any particular central organization.

ETC Supply: How Does It Affect Prices?

The supply of a cryptocurrency is a very important factor in determining its price. In the case of ETC, there is a maximum supply limit.

Maximum Supply and Current Circulation: The maximum supply of ETC is approximately 2 million ETC. This is a design with an issuance limit, similar to Bitcoin's 1070 million BTC. Specifically, an improvement proposal called "ECIP-2100" introduced a mechanism (commonly known as the "1017M500 policy") in which mining rewards (reward for issuing new coins) are reduced by 2.5% approximately every 20 million blocks (approximately every 5 years). This will gradually reduce the amount of new issuance, eventually reaching the supply limit. The current amount of circulation can be checked in real time on cryptocurrency information sites such as CoinMarketCap.
Why supply matters :
- ScarcityA capped supply means that ETC may become scarce in the future. If demand for ETC continues to grow, this could cause prices to rise given the limited supply.
- Inflation Control：Fiat currencies (such as yen and dollars) can have their supply increased or decreased by central bank policies, causing inflation (price rise), but cryptocurrencies with a supply cap like ETC are theoretically expected to prevent uncontrolled inflation. Periodic reductions in mining rewards also serve to gradually reduce this inflation rate.

This supply mechanism can be said to be one of the important design concepts for stabilizing the value of ETC in the long term.

The technical structure of ETC: Blockchain and special technologies

Now, let’s get a little more technical: ETC is based on blockchain technology, but how does it work specifically?

A brief explanation of blockchain

First, let's briefly review what "blockchain" is.

Blockchain in a nutshell"A distributed digital ledger (a database of transaction records)"Transaction data is organized into chunks called "blocks," and each block is linked together in chronological order like a chain.CryptographyThis makes it extremely difficult to tamper with information once it has been recorded.

And the biggest feature is that this ledgerdecentralizedThat is, instead of being centrally managed by a specific company or organization, many computers (called nodes) around the world share and verify copies of the same ledger. This increases transparency (anyone can view the records) and eliminates single points of failure (the risk that one point going down can bring down the entire system).

When a new transaction occurs, it is verified by miners on the network, and if approved, it is included in a new block and appended to the end of the chain, creating a secure and permanent record of the transaction.

ETC’s Special Technology: Proof of Work (PoW) and Smart Contracts

ETC is based on blockchain technology and employs several unique technologies.

Proof of Work (PoW) and ETChash Algorithm: As mentioned above, ETC uses PoW. Specifically, it uses a mining algorithm called "ETChash" (formerly Ethash). This has been improved to prevent the centralization of ASIC (ASIC - high-performance integrated circuit designed specifically for mining specific cryptocurrencies) mining and to make GPU (graphics processing unit - a semiconductor chip that processes images and is also used for mining) mining more fair. This is expected to make it easier for more participants to participate in mining and increase the decentralization of the network. Even now in 2025, ETC is attracting attention as a cryptocurrency that can be mined, and it often appears in search results such as "crypto to mine in 2025".
Smart Contract FunctionOne of ETC's core features is smart contracts, which are pre-programmed contracts that are automatically executed when certain conditions are met. ETC's platformTuring-completeIt has a simple virtual machine (EVM - Ethereum Virtual Machine), which allows you to write and execute smart contracts with complex logic. This allows for reliable automation of transactions and agreements without intermediaries.
EVM compatibility: ETC is the original Ethereum chain, so it remains compatible with the EVM. This means that many tools and DApps developed for Ethereum (ETH) could theoretically run on ETC (or be relatively easily ported). However, due to differences in the size and support of the ecosystem, it is not as active as ETH in practice.

The reliability of the development team and community

When assessing the reliability of a cryptocurrency project, the activity of the development team and community is extremely important.

Development StructureETC does not have a centralized "official team" that controls everything. This is based on ETC's decentralized philosophy. Instead, multiple independent development teams and organizations contribute to improving the ETC protocol and developing client software. Some of the most prominent are:ETC CooperativeThere is a non-profit organization called ETC, which supports the growth of the ETC ecosystem, provides grants to developers, and conducts marketing activities. In the past, IOHK (Input Output Hong Kong, also known as the developer of Cardano) was also involved in the development of ETC. Development is done as open source,ECIP (Ethereum Classic Improvement Proposals)Through this process, anyone can submit improvement suggestions and participate in the discussion.
BoardETC's community is supported by members who strongly sympathize with the principle that "code is law." Lively discussions and information exchanges take place on online platforms such as Reddit's r/EthereumClassic forum, Discord servers, and Twitter (now X). People from diverse backgrounds, including developers, miners, investors, and pure technology enthusiasts, participate in the community, forming a global one.

While this decentralized approach has the strength of not relying on a single organization, it also has aspects that differ from centralized projects in terms of development direction and speed.

ETC Use Cases and Future Outlook

So, what exactly can Ethereum Classic be used for, and what potential does it have for the future?

Current main use cases

Platform for decentralized applications (DApps): It is the foundation for building and running various DApps such as finance (DeFi - decentralized finance), games, digital identity management, etc., using smart contract functions. Although the number of DApps is smaller than that of ETH, development is progressing steadily.
Smart contract execution: Companies and individuals can use it to automatically execute contracts without an intermediary, for example to automate insurance payments or real estate transactions.
Issuance of digital assets (tokens): You can issue your own tokens (digital certificates that represent other assets or rights) on the ETC blockchain.
Store of valueWhile Bitcoin is likened to "digital gold," some people consider ETC to be "digital silver," and consider it a long-term store of value due to its scarcity (there is a limit to how much can be issued) and the security provided by PoW.
Payment and data management between IoT (Internet of Things) devicesIt has been pointed out that ETC’s lightweight nature and security could potentially be used in the future for micropayments and secure data exchange between IoT devices.

Future outlook and price predictions for 2025

Opinions are divided on ETC's future prospects, with some analysts focusing on its strong philosophy of "immutability," proven security through PoW, and fixed supply.

Looking at the search results, many predictions have been made for keywords such as "ETHEREUM CLASSIC PRICE 2025". For example, one Reddit discussion introduced an analyst's prediction that "If ETH reaches $2025 by the end of 5,000, ETC could reach $350 to $400" (source: Reddit r/EthereumClassic). Coinpedia.org also predicts that "Ethereum Classic coin prices could reach up to $2025 in 55". Exchanges such as Kraken also provide ETC price prediction tools.

These predictions are merely the views of analysts and market participants and are not a guarantee of future prices. It is important to understand that cryptocurrency prices are highly volatile and influenced by many factors. Bitget's article cites "ongoing upgrades and improvements to improve the security, scalability, and functionality of the ETC blockchain" as a key factor influencing the price.

ETC's roadmap (development plan) is also one of the points to watch. According to a post on X.com/CryptoJournal, roadmap updates as of June 2025 are sometimes released, and research is underway to strengthen network security (introduce MESS - Modified Exponential Subjective Scoring as a countermeasure against past 6% attacks) and layer 51 solutions (technology to reduce the load on the blockchain itself) to improve scalability (processing capacity).

Comparison with competing projects: ETC’s strengths

There are many competing projects in the smart contract platform field. What are ETC's strengths among them?

Differences from Ethereum (ETH): The biggest comparison is probably Ethereum (ETH). ETH forked after The DAO incident and has now moved to PoS. Meanwhile, ETC maintains its original chain with PoW. This commitment to PoW is ETC's biggest differentiator. PoW has a long track record of operation and is an attractive option for users and developers who trust its security model.
Comparison with other smart contract platforms: Many new generation platforms have also emerged, such as Cardano (ADA), Solana (SOL), and Polkadot (DOT). Many of these specialize in scalability or specific functions, but ETC has the advantage of its history and stability as the "longest-running smart contract-enabled PoW chain."
ETC's unique strengths :
- "Code is law" philosophy: This emphasis on immutability above all else fills a specific niche demand.
- Predictable monetary policy: The gradual reduction of the issuance cap and mining rewards is believed to control inflation and make long-term value easier to predict.
- Support from the mining community: With ETH moving to PoS, many PoW miners have moved to other PoW coins such as ETC. The existence of this strong mining community is important in supporting the security of the network. ETC is also listed in search results in articles such as "Top 10 Crypto to Mine in 2025" and "Best Crypto To Mine in 2025," indicating its popularity as a mining target.

Risks and precautions to be aware of before investing

Even if you are interested in ETC, you should be aware of the risks and precautions before considering investing in it. This is true not only for ETC, but for all virtual currencies.

Price fluctuation risk (Volatility): The price of virtual currencies can fluctuate significantly in a short period of time. ETC is no exception. While you can expect high returns, you can also incur large losses.
The risk of a 51% attack: Blockchains that use PoW are theoretically at risk of a "51% attack." This is an attack in which a malicious group can control a majority of the computing power (hash rate) of the entire network, allowing them to approve fraudulent transactions or reject legitimate transactions. ETC has been the victim of this attack several times in the past. Since then, security measures (e.g. MESS) have been introduced, but coins with low hash rates are relatively at higher risk.
Development resources and ecosystem size: Compared to ETH, ETC’s developer community and DApps ecosystem are smaller, which may affect the speed of adopting new technologies and responding to problems.
Regulatory Risks: Governments and regulators around the world are still exploring how to legislate cryptocurrencies. Unforeseen regulations may be introduced in the future, which could affect the entire cryptocurrency market, including ETC.
Risk of fraud and hacking: In the virtual currency industry, there is a constant stream of phishing scams (a method of directing users to fake sites to steal personal information) and exchange hacking. In order to protect your assets, it is important to take basic security measures such as choosing a trustworthy exchange, setting up two-factor authentication, and not clicking on suspicious links.
Do Your Own Research (DYOR): This article and any other information is not the final basis for making investment decisions. Please be sure to gather information yourself, conduct thorough research and consideration, and make your own decisions at your own risk.

What experts and analysts say

Opinions of experts and analysts regarding ETC vary widely. As mentioned above, some price predictions for 2025 are more bullish (e.g., $350-$400 mentioned on Reddit) and others are more conservative (e.g., up to $55 on Coinpedia). These price predictions depend on many factors, including the overall market trends, especially the price trends of Bitcoin and Ethereum (ETH), the progress of ETC's own technological development, and macroeconomic conditions.

It is important to understand that these predictions are merely "possibilities" and not guaranteed futures. Some analysts point out that ETC's "immutability" philosophy and PoW security model may be supported in the long term by users with certain use cases and values. On the other hand, there are concerns about competition with ETH and the rise of other new platforms.

Latest News and Future Roadmap

The ETC project is under ongoing community-driven development, so keeping up with the latest updates and roadmap highlights will help you gauge ETC’s future.

Network Upgrade: Network upgrades are regularly planned and implemented to strengthen security (e.g., the aforementioned continuous improvements to MESS to protect against 51% attacks and strengthening monitoring), improve scalability, optimize the protocol, etc. As noted in a Bitget article, "continuous upgrades and improvements to improve the security, scalability, and functionality of the ETC blockchain" are a key indicator of the health of the project.
Community Proposals (ECIPs)Through Ethereum Classic Improvement Proposals (ECIPs), new features and solutions to existing problems are discussed and, if adopted, moved to implementation. These discussions are open to the public, demonstrating the transparency of the project.
Initiatives to expand the ecosystemThe ETC ecosystem is expanding through organizations such as the ETC Cooperative, which provides developer tools, holds DApp development contests, and creates educational content.
Roadmap UpdateSources like:X.com/CryptoJournal suggest that ETC's roadmap is updated regularly (e.g., "Ethereum Classic ($ETC) – #Roadmap [ #Update: June 2025 ]"). These updates often include short-term development goals as well as a long-term vision.

This information can be found on the Ethereum Classic official website, the ETC Cooperative blog, and related community forums.

Frequently Asked Questions (FAQ)

Finally, we have compiled some common questions that beginners may have about Ethereum Classic and their answers.

Where can I purchase ETC?
ETC can be purchased at many major cryptocurrency exchanges. For domestic exchanges in Japan, it is safe to choose an exchange registered with the Financial Services Agency. Well-known overseas exchanges include Binance, Kraken, and Coinbase. The article "How to Buy Ethereum Classic (ETC) in 2025" on BeInCrypto.com also introduces the steps to "open an account at a cryptocurrency exchange that lists Ethereum Classic."
What is the crucial difference between ETC and ETH (Ethereum)?
The biggest difference is their origins and consensus algorithm. ETC is the original Ethereum chain that did not change the blockchain record during The DAO incident, and it adheres to the principle of "code is law" and continues to adopt Proof of Work (PoW). Meanwhile, ETH is a new chain that has corrected its record and forked, and is now moving to Proof of Stake (PoS).
Is ETC mining still possible? Can beginners do it?
Yes, ETC uses PoW, so it is possible to mine it as of 2025 if you have equipment such as a dedicated GPU (graphics board). In the article "Top 10 Crypto to Mine in 2025" on MarshmallowChallenge.com and an article on Gov.capital, ETC is introduced as a coin suitable for mining, and Ethermine.org, f2pool, Nanopool, etc. are listed as mining pools (groups where multiple people work together to mine) for beginners. However, mining requires specialized knowledge, initial investment, electricity costs, etc., so you should do your research before starting.
Is there a future for ETC? What will happen after 2025?
Opinions are divided on this, but ETC has strengths such as a fixed supply, proven security through PoW, and smart contract functionality. Some analysts and investors see long-term future potential in these areas. As mentioned above, there are various views on price predictions for 2025, but the trends of ETH and the development progress of ETC itself are thought to hold the key. However, the risk of price fluctuations and the existence of competing projects must also be taken into account.
How to store ETC safely?
There are three main ways to store your ETC safely:
1. Hardware Wallet: It is considered the most secure because it manages private keys (access keys to assets) offline using dedicated physical devices such as Ledger and Trezor.
2. Software Wallet: A type of wallet that is installed on a PC or smartphone. It is very convenient, but there is a risk that the device will be infected with malware (malicious software).
3. Exchange Wallet: This is a method of storing your assets directly at the exchange where you purchased them. Although this is an easy method, there is a risk that the exchange itself may be hacked. If you plan to hold a large amount of assets for a long time, we recommend using a hardware wallet.
Regardless of the method you choose, managing your private keys and passwords is extremely important, as losing them or having them stolen can result in permanent loss of your assets.

Disclaimer

This article is intended only to provide information about Ethereum Classic (ETC) and does not recommend investing in any specific financial products. Investing in crypto assets (virtual currencies) involves high risk of price fluctuations. Please make any investment decisions at your own risk and after sufficient research and consideration. We are not responsible for any losses incurred based on the information in this article.

Links

For more detailed information and the latest updates, we recommend you refer to the official websites and communities below.

The world of Ethereum Classic (ETC) is deep, and there is a lot to learn from its philosophy and technology. I hope this article will help you understand it better. The journey of exploring the world of virtual currencies is always full of new discoveries!

Ethereum Classic, ETC, Virtual Currency, Beginners, Blockchain

A Complete Guide to Ethereum Classic (ETC): A Beginner's Guide and Price Prediction for 2025