The ETC network has been trapped in a proposed algorithm shift to increase its security. The network has been quite vulnerable to attacks by 51% in the past and therefore, to increase its security, the ECIP 1049 proposal recommended a move to SHA 3 (Secure Hash Algorithm 3) to "greatly reduce the chances of attackers attacking the network. network". Evidently, investor confidence in ETC was dented as the network witnessed successive successful attacks in August last year.
As a matter of fact, ETC has carried on ETC's PoW legacy and the same has not benefited the network greatly. The nature of the PoW and the "need" to create a "secure" system that could continuously reach consensus were the main reasons for enforcing the SHA 3 Classic Coalition. As for his progress, Alex Tsankov, who leads the coalition, said:
“Basically, we're done with the code. The code for SHA 3 exists. It worked on testnet and we are only in the phase of building community consensus ”.
Tsankov further stated that the same was happening "fantastically well" on the testnet. Regarding the timing and actual implementation, he added,
"I believe that in the next year, at the latest, the transition will take place"
According to Tsankov, SHA 3 could be “one of the biggest” changes that can happen with Ethereum Classic. ECIP 1049 would pave the way for a better and safer ecosystem. Basically, the hash rate of the network would also increase and the mining hardware pool would also diversify. He added:
"In my opinion, it's the only change that needs to happen to ETC for it to become a potentially even bigger system than Bitcoin or Ethereum."
Interestingly, data from BitInfoCharts pointed out that ETC's hash rate doubled from 12 tertahashs per second (at the end of April) to 24,7 tertahashs per second at the time of writing. Further approving the "superiority" of the algorithm, Tsankov added,
"There is no better hashing algorithm than SHA 3. So, the idea is that if ETC is to stay as PoW, which it is, then the best performing algorithm we can do is SHA 3."
Tsankov further argued that with the implementation of SHA 3, the attacks of 51% "will not be repeated". Indeed, the initial attacks were "very easy" to perform just because the ETH miners used the same algorithm to pass and attack the ETC network, but now, when the algorithm changes, switchover won't happen that easily.
"For ETC to be truly successful, we need to have our own algorithm separate from ETH."
As for the implementation of additional smart contracts on ETC's network, Tsankov said,
“Basically, ETC just needs multiple wallets to support it. My theory has always been that if ETC got the same level of support as ETH's portfolio, I think a lot more people would use ETC ”.