What Is Ethereum Classic (ETC)?

 







Ethereum Classic (ETC) emerged as a continuation of the original Ethereum blockchain following a significant divide in the community. This split was driven by differing ideologies on how blockchain technology should evolve and respond to security breaches.

Today, ETC stands as a testament to the principle of blockchain immutability, attracting a distinct user base and developer community.

Knowing The History of Ethereum Classic

Ethereum was launched with the vision of creating a decentralized platform that would enable the execution of smart contracts and dApps, aiming to extend the blockchain’s utility beyond just financial transactions.

In 2016, the DAO, a decentralized autonomous organization on Ethereum, was exploited due to a flaw in its code, leading to the theft of millions in Ether. This event tested the Ethereum community’s principles, particularly around code immutability and the ethics of blockchain interventions.

The decision to reverse the hack through a hard fork was controversial, resulting in a faction of the community maintaining the original chain, thus birthing Ethereum Classic. ETC embodies the philosophy that transactions and smart contracts should be irreversible, regardless of their outcome.

What is Ethereum Classic (ETC)?

Ethereum Classic (ETC) is a decentralized, blockchain-based computing platform that supports smart contracts. It emerged as a split from the original Ethereum blockchain in a process known as a “hard fork.” This division was primarily due to a disagreement in the Ethereum community following a significant hacking event called the DAO attack in 2016.

While Ethereum (ETH) decided to reverse the transaction history to restore the funds, a portion of the community chose to maintain the original transaction history, leading to the creation of Ethereum Classic.

Ethereum Classic aims to preserve the principle of “code is law,” signifying that the blockchain should remain immutable, regardless of the circumstances.

This principle is what differentiates ETC from ETH and appeals to a segment of users and developers seeking a network where transactions and contracts are irreversible.

How Does Ethereum Classic (ETC) Work?

Ethereum Classic works similarly to Ethereum in that it offers a decentralized platform for running smart contracts and decentralized applications (DApps). However, it maintains its network and operates independently of Ethereum’s upgrades and changes.

  1. Blockchain Structure: ETC operates on a blockchain, which is a decentralized and distributed ledger recording all transactions and smart contract executions.
  2. Consensus Mechanism: Initially, Ethereum Classic used the same proof-of-work (PoW) consensus mechanism as Ethereum. However, it’s essential to note any current changes or plans for transition, such as a potential shift to proof-of-stake (PoS), if relevant.
  3. Smart Contracts and DApps: Like Ethereum, ETC allows developers to create and deploy smart contracts and DApps, albeit on a separate and distinct blockchain.

How Is Ethereum Classic Different from Ethereum?

Ethereum Classic (ETC) and Ethereum (ETH) share a common history but have diverged significantly in terms of their philosophy, technological development, and community goals. Here’s a comparative analysis highlighting the key differences:

Philosophical Differences:

  • Immutability: Ethereum Classic upholds the principle that the blockchain should remain immutable, meaning that transactions and smart contracts should not be altered post facto. This stance is rooted in the belief that “code is law.”
  • Adaptability: Ethereum, on the other hand, has shown a willingness to adapt and make significant changes to its protocol, including reversing transactions under exceptional circumstances, as was the case with the DAO hack.

Network Split — The DAO Incident:

  • The divergence between Ethereum and Ethereum Classic originated from the DAO hack in 2016. The Ethereum community faced a decision: reverse the hack to refund the affected parties or uphold the immutability of the blockchain. This led to the split, with Ethereum opting for a hard fork to reverse the hack. At the same time, Ethereum Classic continued on the original blockchain, preserving the hack transactions as part of its immutable history.

Technical Development:

  • Consensus Mechanisms: Ethereum transitioned to a Proof of Stake (PoS) consensus mechanism with its Ethereum 2.0 update, aiming for greater energy efficiency and scalability. Ethereum Classic, however, continues to use Proof of Work (Pow), maintaining the original Ethereum consensus mechanism.
  • Network Upgrades and EIPS: Ethereum continues to introduce significant network upgrades and Ethereum Improvement Proposals (EIPS) to enhance its platform. Ethereum Classic also implements EIPS but is more conservative in its changes, focusing on maintaining compatibility with Ethereum while prioritising network stability and security.

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Continue reading here to learn more about: Ethereum Classic

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