Many cryptocurrencies have been struggling with scalability, and Bitcoin is a good example of that. Ethereum Classic seems like undergoing interesting changes in near future. Sidechains are still not so much used by many developers but it can clear the roadblock and bring many opportunities.
To improves Ethereum Classic’s scalability, it is going to integrate sidechain called Callisto. It has an interesting name but what one should remember is that this sidechain integration is for implementation of future protocol changes. ETC has smart contracts, but its developers want to create an on-chain governance system for this technology. Callisto will not only improve Ethereum Classic but the new network implementation as well. In short, it will possible to use Callisto smart contracts for Ethereum Classic and vice versa.
Also, Callisto has a native currency called CLO, and it will be both separate blockchain and an Ethereum sidechain. Similar to Ethereum Classic, CLO also has fixed cap. The advantage of holding CLO gains the investors interest for holding it for longer time. Unlike Bitcoin, CLO doesn’t require to run a full node.
The issuance of CLO will begin after Ethereum Classic blockchain hits 550,000, and a snapshot of Ethereum Classic blockchain will be taken. Every ETC holder will receive 1 CLO per ETC they own. It is similar to Bitcoin’s recent hard forks. However, it has more than one valid purpose and it will open up many opportunities amongst the developers.