Why You Should Build on Ethereum Classic: ETC Is Hard Money
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This post is part of a series that will explain to dapp developers why they should build on Ethereum Classic (ETC).
The titles of the series will start with the prefix “Why You Should Build on Ethereum Classic” followed by the highlighted feature of that post.
The 9 highlighted features in this series will be:
- ETC Is Proof of Work
- ETC is Hard Money
- ETC Is Programmable
- ETC Is Fully Replicated
- ETC Is Composable
- ETC Is the Largest POW Smart Contracts Blockchain in the World
- Applications in ETC Are the Most Secure Apps in the World
- ETC Is Code Is Law
- ETC Is Bitcoin but With Ethereum Technology
In this post we will explain why developers should build on ETC due to the fact that it is hard money.
ETC Is Proof of Work
The first reason ETC is hard money is because it is a proof of work (POW) blockchain.
POW was first thought as digital gold as the proof of work hashes were analogous to gold in the real world.
Just as gold is very difficult and costly to mine by gold miners, POW hashes in proof of work blockchains are very difficult and costly to mine by computers.
However, in Bitcoin and ETC the POW hashes are not the currency that circulates in the networks but native tokens have been created to have this monetary role.
These tokens, BTC and ETC, are just like digital gold because the cost of creating the blocks is the cost of creating the tokens.
ETC Has a Fixed Monetary Policy
The ETC tokens are hard money and serve as currency because they have the properties desired to have this function.
ETC is scarce, durable, costly to create, portable, divisible, fungible, and transferable. These are the features that economics defines as the main attributes of money.
Not only is the ETC cryptocurrency costly to create because the coins are only issued when the work is done by miners, but it has a monetary policy that is deflationary and has a supply cap.
Indeed, according to ETC’s monetary policy, there will ever be 210,700,000 ETC in circulation.
ETC are created in every new block, it started in 2015 paying 5 ETC per block, and from then on it has been discounting that payment by 20% approximately every two years.
As of this writing, the payment per block to miners is 2.048 ETC, which implies an annualized inflation rate of 3.37%, and trending lower.
ETC Will Keep Its Value Over Time
Given the monetary attributes described above, that it is a POW coin, and that it is programmable, ETC is usually mentioned as programmable digital gold.
Just as gold in the real world has kept its value over thousands of years, ETC will keep its value over the long term.
Not only ETC is good and scarce money, but it is the native token of the Ethereum Classic blockchain. This gives it two economic functions that sustain its value:
It is the coin used to pay miners for producing blocks
It is the coin used by users to pay for gas fees
These two roles in the base network protocol give ETC additional sustainability over time.
ETC Will Protect and Grow Your Users’ Savings
As a dapp developer, you want your users to enjoy great products and for them to be satisfied with your solutions.
In ETC, your users will not only be enjoying the benefits of decentralization, but also a cryptocurrency that will protect and increase their savings in the long term.
There are many cryptocurrencies, tokens, and blockchains out there, but only very few provide the original guarantees promised by truly secure and decentralized blockchains such as Bitcoin and ETC.
Ethereum Classic will likely be one of the most secure base layer blockchains in the industry and the primary chain where developers will build the most secure apps in the world to serve their clients.
This is yet another reason why you should build on ETC!
Thank you for reading this article!
To learn more about ETC please go to: https://ethereumclassic.org
