Ethereum Classic (ETC) is a cryptocurrency built on blockchain technology. Its operating mechanism is similar to Bitcoin, using a Proof of Work (POW) system. This article will take an in-depth look at ETC’s mining, economic model, and future development potential.
What is ETC?
ETC is a branch of Ethereum, which split due to a major event in 2016. Unlike Ethereum (ETH), ETC maintains the original blockchain and adopts a fixed supply model similar to Bitcoin in economic policy. This means that the supply of ETC is limited, making it considered "digital gold" in a way.
Basic principles of mining: In POW blockchain, miners provide computing power to generate new blocks. The generation of these blocks requires a large amount of computing resources, and miners receive block rewards. For ETC, miners’ rewards come not only from newly created ETC, but also from all transaction fees included in each block. This makes ETC’s mining activities potentially profitable.
Mining profit potential
According to market analysis, ETC will generate considerable revenue in the next few years, and miners will be able to earn considerable returns from it. Here are four main metrics miners should focus on to quantify ETC’s market potential:
Block reward: ETC’s block reward is set at 5 ETC per block starting in 2017, and will be reduced by 20% every 5 million blocks. This reduction is designed to be similar to Bitcoin’s halving mechanism.
Transaction fees: The fees generated by transactions in each block are also a source of income for miners. As the usage of ETC increases, this revenue will also grow.
Competition among miners: As the value of ETC rises, more and more miners will enter the market, which will affect how easy it is for miners to obtain rewards.
Market demand: The demand for ETC will directly affect its price, which in turn affects the income of miners.
Supply model of ETC
ETC's supply model is similar to Bitcoin, which makes it somewhat unique in the cryptocurrency market. The initial supply of ETC is 72,009,990, which is issued through premine. At the current block height of 20,081,198, the total supply of ETC is close to 147.5 million (147,494,079.63). The composition of these supplies is as follows:
Pre-mined: 72,009,990
Block reward: 73,966,294
Uncle Blocks: 1,517,796
Uncle blocks refer to those valid blocks that were generated at the same time but have not been included in the main chain. The rewards for this part will be paid to miners.
Why choose ETC? There are many reasons to choose mining ETC, the first being its stable economic model. The supply of ETC is capped at 210,700,000, which means that the scarcity of ETC will increase over time, potentially driving its price upward. In addition, ETC’s community activity and technological development also provide support for its future growth.
Summarize
As a blockchain-based cryptocurrency, ETC has a stable supply model and considerable mining profit potential. As market demand grows and technology advances, ETC is expected to occupy a place in the future cryptocurrency market. Whether for novice miners or experienced investors, ETC deserves in-depth study and attention.
Before participating in ETC mining, it is recommended that you conduct sufficient market research to understand the related risks and opportunities. Remember: Do not blindly believe any information, be sure to conduct your own verification and research.