Ethereum Classic is now undergoing great changes. For its contributors and followers, the emergence of the Callisto Network has become a huge discovery and a unique connecting link, which is primarily aimed at helping the ETC to rise and present a protocol of cold-staking.
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ETC hardfork or parallel chain?
It is a standalone blockchain that integrates with the main ETC chain, and has its own personal CLO token, and also has a monetary policy similar to ETC, with stable capital and incentives designed to allow users to view the CLO as a store for their money. All these changes were met with great excitement, as they could raise the ETC to a different level that had not been achieved before.
Some consider CLO to be an ETC hardfork, but in fact it is a chain that exists in parallel and is designed to bring a number of advantages, it's a localized cryptographic platform that has open source code and with its own CLO cryptocurrency. The goal of this new project is to increase the growth and interest in Ethereum Classic.
What are the problems of the project and how to solve them?
The primary problem of this project, however, like ETC, lies in the scaling. Bitcoin was the first to encounter this, and everyone knows that the reason for this was the insuperable transaction fees and confirmation time in recent months. ETC developers found a solution to this problem, thanks to the sidechain, rather than saving data on the main chain, increasing blocks, such as BCH.
For those who do not know, a «sidechain» is a side chain, an individual blockchain, which is mainly related to the use of a two-way binding that allows for mutual replacement and movement of assets along the chain with a conditioned exchange rate fixed. In simple words, this means that the datasets or operational capabilities of the side chains are tied to the main chain and their use frees the bandwidth in the ETC main circuit.
This side chain is used to analyze and ensure the referential implementation of protocol changes. On the other hand, CLO is a characteristic test network for ETC, which has its own cost.
Another problem faced by ETC was that its owners did not have an incentive to store their coins, and this is the main feature for the token as a means of storing money. The introduction of Callisto for ETC made it possible to check the protocol of the cold-staking, which eliminates this error, giving the owners the encouragement that they are part of the network.
Cold-staking is a thoughtful contractual process that enables CLO holders to receive interest for issuing CLOs when they keep the remnants of CLO coins for a certain time. It is not yet known whether this process will continue to develop. In any case, this is a bold move by developers who have creatively solved existing problems.
To protect against hacking of smart- contracts, which entail huge problems and financial costs, an official intellectual audit department was created. Sometimes the process of hardfork, as a result of the development of blockchain, can be disorganized and bring certain difficulties. Callisto solved this problem by determining the dates of updates in advance so that all members of the community knew about the changes and could be ready for them.
A good note for newbies: forget that wallets are just tools for linking with a chain, and you do not actually hold ETC coins there. Your wallet can have a balance, but it's just a reflection of what's on the blockchain.
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Each address in this ETC chain has been assigned a CLO. Therefore, the problem of those who used a wallet that did not support it, was solved with the preservation of tokens. Everyone can control their CLO, if the secret key has been saved.
At a time when the popularity of forks is growing, Ethereum Classic quite justifiably launches its novelty. After all, users are very positive about such new projects, which provide them with new coins, due to their old savings. Of course, this cannot be called the main reason for launching a new coin and it is quite possible that the creators simply presented to the users something new and promising. In any case, this novelty is waiting for a great deal of excitement.
Editor: Yuliya Soroka