Ethereum Classic Ready to Be Tokenized on Ethereum (ETH)’s Blockchain, Become Cross-Compatible
Ethereum Classic (ETC) could soon be closer to Ethereum (ETH) once it becomes tokenized in this network. According to a recent blog post released by an Ethereum developer, they are working on a set of smart contracts deployed across two chains that will enforce consistency across these two chains. The project is called Peace Bridge and it could make ETC compatible with the Ethereum network.
According to Ethereum Classic, the ETC-ETH bridge could be released to the market in the near future.
#PeaceBridge ETC-ETH Bridge Nears Completion!
— Ethereum Classic (@eth_classic) March 1, 2019
Ethereum Classic coins will be tokenized as TETC and will be running on top of the Ethereum network. The design seems to be very simple and it includes a semi-trusted set-up. There is a custodian that creates a smart contract on the ETC blockchain and the user has to lock his coins. Then, there will be a mining smart contract on the Ethereum blockchain that will be printing TETC.
There will also be an authority that will be approving whether the TECT printed correspond to ETC. They will also be approving transfers and withdrawals of ETC. As explained by TrustNodes, the custodian has to also put down a stake in case they misbehave.
Although these are public blockchains, there must be some trust involved. The blog post explains:
“By design, the peaceBridge minimises trust in centralised authority. The staked Custodian is basically reduced to a signing service and additional security provider. In case of a double spend, where there is no way to tell cross-chain which transaction was canon, the Custodian is punished for double-signing and the corresponding double-signed amount is slashed from his stake.”
According to the Twitter user Donald McIntyre, the reason Ethereum Classic will be the chosen network over the others is due to the fact that it can guarantee trust minimization b staying with the PoW algorithm, having a fixed and clear monetary policy and put security and immutability first.
At the moment of writing this article, Ethereum Classic is the 18th largest cryptocurrency in the market. It has a market capitalization of $470 million and each ETC can be purchased for $4.32. Ethereum remains as the second largest blockchain network with a market value of $14.58 billion and a price per ETH of $138.