Ethereum Classic (ETC) is an open source, decentralized cryptocurrency that runs smart contracts based on blockchain. It maintains the original, unaltered history of the Ethereum network. Smart contracts perform base on “Code is Law” regulation. They are self-executing autonomous digital applications, which execute based on their programming purpose.
In fact, Ethereum Classic created as a split version of the Ethereum blockchain after a hack happened in the network in Jun 2016 and $50 million worth of coins were stolen. The split implemented to return and recover the stolen funds to the participants, but after that, the fork implementation led to two versions at the same time. The newer version was called Ethereum (ETH) and the older one re-branded to Ethereum Classic. In fact, Ethereum classic is the same as Ethereum, which running on the old version of the blockchain.
What is Ethereum Classic?
Ethereum Classic is a hard fork of the old Ethereum that happened by its creator, Vitalik Buterin and the majority of the community in order to return the stolen funds by rolling the blockchain back to block 1920000. But what is the story behind the stolen funds?
It was on May 2016 that DAO was getting ready for operation and could raise funds for around $150 million. But a paper released and mentioned some details about some security defects in the DAO architecture. After a while, in June 2016,DAO was hacked by abusing the same security defect mentioned in that paper and around $50 million were stolen. This catastrophe caused a schism in the Ethereum community. Although, developers believed that they can fix the problem and return all the stolen ether coins to their owners, it was against the core philosophy of cryptocurrency. The philosophy which says that all the transactions in the network cannot be deleted or even edited. Inevitably, Ethereum underwent a hard fork.
After the hard fork, the part of the community continued to mine and support the original blockchain without the update. As a result, both versions are running and the original one called Ethereum Classic(ETC) and the new version, which is the fork of the old one called Ethereum (ETH).
One of the main features of Ethereum Classic is that, it uses the codebase of the most successful blockchains of all time (Bitcoin). Furthermore, it gained an advantage in marketplace, developer and wallet support because of its ties to Ethereum.
Although a part of community remained on the older platform, the majority of participants chosen Ethereum (ETH). Many take this incident as a fortune. Because by the hard fork happened, the new network allows countless innovative Dapps to run. Its platform allows everyone to build and run a project, which has the potential to revolutionize any industry.
However, ETC experience unfortunate history of the DAO hack, the core idea behind the DAO could made significant positive impacts on the future of technology. In fact, it gave birth to a stronger platform. To be fair enough, both camps of the Ethereum and Ethereum Classic argument make solid points.