In recent years, Ethereum has become a leading player in the crypto industry. This can be seen, for example, due to the fact that most popular altcoins base their functioning and development on this network. Nevertheless, few people are aware that there is a big brother of Ethereum called Ethereum Classic. So what made ETH a huge success that ETC failed to replicate? We invite you to read!
Often called the older sibling of Ethereum (ETH), ETC is the result of the schism of the community associated around the child Vitalik Buterik. But how did it happen? What were its consequences?
To understand ETC, we have to go back to 2015 when Ethereum was created. This project was aimed at creating a blockchain platform that would allow the programming of smart contracts. However, in 2016 there was an incident related to the DAO, i.e. a decentralized autonomous organization that collects funds to finance projects based on Ethereum.
The hackers took advantage of a vulnerability in the DAO code, which allowed them to steal a significant part of the collected funds. In response to this incident, part of the Ethereum community decided to hard fork, i.e. a change in the protocol, which was aimed at reversing transactions related to theft and returning the stolen funds to their owners. This new division of the blockchain became known as Ethereum (ETH).
However, part of the community, opposed to reversing the transaction and interfering with the immutability of the blockchain, decided to keep the original chain as an independent cryptocurrency. This is how Ethereum Classic (ETC) was created. In the case of ETC, the principle of “code is law” is crucial, which means that the code is immutable and transactions performed on it – irreversible.
As for Vitalik Buterin’s attitude towards the whole situation, it is worth noting that some members of the Ethereum Classic community feel somewhat disappointed with his decisions to intervene in the immutability of the blockchain. Therefore, some of them may feel a certain distance when it comes to the creator of ETH.
ETC works on similar principles to Ethereum. It is a blockchain platform that allows you to create and execute smart contracts. Smart contracts are computer programs that “execute” automatically when certain conditions are met. It is thanks to them that it is possible to create various blockchain-based applications, such as cryptocurrency exchanges, voting systems or crowdfunding platforms.
Like Ethereum, ETC relies on Proof of Work (PoW) for consensus and transaction verification. ETC network users can mine new cryptocurrency units, as well as participate in the transaction verification process and network maintenance by sharing computing power.
The most important difference between Ethereum Classic and Ethereum is their approach to blockchain immutability. Ethereum Classic does not allow interference with the transaction history. This means that no institution or group can undo or change transactions made on ETC.
In the case of Ethereum, which was created after a hard fork, an intervention in the blockchain was used to restore the stolen funds. This intervention sparked controversy in the cryptocurrency community and led to a split between Ethereum (ETH) and Ethereum Classic (ETC).
Another difference between ETC and ETH is also their community and development. Ethereum has a much larger community and support from developers, which means that more projects and applications are created on this blockchain. Ethereum is also more popular with investors and users.
While Ethereum Classic has not achieved the same success as Ethereum, it still has its own unique features and group of supporters. The project continues to develop and tries to find its place in the cryptocurrency ecosystem. For prevention – the text was in no way intended to downplay ETC’s market share.
Especially since in recent years, Ethereum Classic has introduced various improvements, such as security and scalability fixes, to attract more users and developers. However, the competition in the field of decentralized finance (DeFi) is huge, so ETC managers must constantly modify their design to adapt to the ever-growing needs of the crypto community.
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