Ethereum Classic is the largest proof-of-work smart contract platform in the world. This design choice delivers security, decentralization, and censorship resistance that no other consensus mechanism can match.
What is Proof-of-Work?
Proof-of-work (PoW) is a consensus mechanism where miners compete to solve mathematical puzzles using computational power. The first miner to find a valid solution adds the next block to the blockchain and earns a reward in ETC.
This process converts electricity into security. The energy expenditure creates an objective, external anchor for the blockchain's state that cannot be faked or manipulated through financial engineering.
Security Through Real Resources
PoW derives its security from the physical world—electricity and hardware investments—not from tokens within the system. This fundamental property creates powerful security guarantees:
- Attack cost is real: Attempting to attack the network requires massive ongoing energy expenditure
- Objective finality: The longest chain represents the most accumulated work, providing clear consensus
- Geographic distribution: Mining operations spread globally, making coordinated attacks logistically impractical
Censorship Resistance
Proof-of-work provides the strongest possible censorship resistance. Since block production depends on computation rather than permission, anyone can participate in securing the network.
No authority can prevent miners from including valid transactions. The global distribution of mining hardware ensures the network continues operating even if individual participants are targeted.
Fair Distribution
In a PoW system, new coins are distributed to those who contribute real resources to network security:
- Merit-based rewards: Miners earn ETC proportional to their contribution
- No wealth concentration: Block production doesn't favor existing holders
- Permissionless entry: Anyone with hardware can participate without approval
The ETCHash Algorithm
Ethereum Classic uses ETCHash, a memory-intensive mining algorithm. This means miners need both computational power and memory, which helps maintain decentralization across different hardware types.
ETC is compatible with GPU and ASIC mining hardware, giving miners flexibility in how they participate in network security.
Network Hashrate
ETC benefits from being the dominant GPU-minable smart contract platform. This massive hashrate makes 51% attacks economically impractical—an attacker would need to acquire and operate more mining hardware than the entire rest of the network combined.
Comparison with Proof-of-Stake
Proof-of-stake (PoS) systems secure networks through token deposits rather than computational work. While PoS has different tradeoffs, PoW offers distinct advantages for applications requiring maximum security and neutrality:
| Property | Proof-of-Work | Proof-of-Stake |
|---|---|---|
| Security source | External (energy) | Internal (stake) |
| Entry barrier | Hardware + electricity | Token holdings |
| Wealth concentration | Minimal over time | Compounds to stakers |
| Attack cost | Ongoing energy expense | One-time capital |
Why ETC Uses PoW
Ethereum Classic's commitment to proof-of-work reflects its core values of decentralization and neutrality. PoW ensures:
- True decentralization: No party gains outsized influence through wealth accumulation
- Immutability: Rewriting history requires re-expending the energy used to create it
- Permissionless access: Anyone can participate in consensus
- Long-term sustainability: Security model proven over more than a decade
Getting Started with Mining
Want to contribute to ETC's security and earn rewards? Check out our mining guides to learn about hardware requirements, pool selection, and profitability.