Ethereum Classic (ETC) is a cryptocurrency that emerged in 2016 as a result of a controversial hard fork of the Ethereum blockchain. ETC is the original version of Ethereum that kept the pre-fork codebase. It operates on a decentralized blockchain platform that allows developers to create decentralized applications and smart contracts. ETC uses a proof-of-work consensus algorithm.
ETC is a decentralized platform. Its progenitor, Ethereum, ETC is a decentralized platform that allows programmers to create smart contracts and decentralized applications (dApps). The supply of ETC is fixed. Unlike traditional currencies that can be printed or minted as needed, the total supply of ETC is capped at 210 million and a fixed supply has been created. ETC is traded on a number of exchanges. Ethereum Classic can be bought, sold and held on a selection of cryptocurrency wallets and exchanges.
The DAO Hack
The DAO breach that happened in June 2016 resulted in Ethereum Classic. A decentralized autonomous organization called DAO was developed on top of the Ethereum blockchain. It worked effectively as a smart contract, allowing investors to pool their money and decide how to use it. A crowdfunding effort for The DAO resulted in more than $150 million in total Ether donations.
Unfortunately, a vulnerability in the smart contract was found and used by an attacker to steal more than 3.6 million ethers, which were worth over $50 million at the time. The Ethereum community was deeply shocked and frightened by this attack, and the value of Ether started falling.
The hard fork
The Ethereum community was divided on how to react to the DAO hack. While some members argued that returning the funds to investors would violate blockchain immutability, others disagreed. Due to the controversial discussion, a hard fork of the Ethereum blockchain finally emerged.
A hard fork was implemented by the majority of the Ethereum community, effectively resulting in the creation of a new blockchain that retained the modified protocol. The name of this new blockchain is now Ethereum (ETH). The aim of the hard fork was to return the money to the hacked investors.
However, a small portion of the community chose to stick with the original blockchain because they opposed the hard fork. This faction viewed the hard fork as a violation of blockchain immutability, which they held to be a sacred value.
Diploma:
As a result, Ethereum Classic was created as a standalone cryptocurrency that retained the pre-fork blockchain and used the original Ethereum source. With different communities and development teams, Ethereum (ETH) and Ethereum Classic (ETC) are currently two different cryptocurrencies.
Disclaimer
The views and opinions of the author or those referred to in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets involves risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own bank and break away from traditional money exchange systems. She is also fascinated with blockchain technology and how it works.
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