Ethereum Classic (ETC)

Ethereum Classic (ETC) is a cryptocurrency that continues the original Ethereum blockchain after the DAO attack in June 2016. It is a decentralized platform that allows anyone to create and utilize decentralized applications based on blockchain technology. Like Bitcoin, Ethereum Classic is not controlled or owned by any single entity; it is an open-source initiative developed by a global community.

Designed for adaptability and flexibility, Ethereum Classic aims to facilitate the creation of new applications on its platform. Ethereum (ETH) emerged as a hard fork of the original blockchain, created to reimburse the funds lost during the attack, which amounted to approximately $50 million.

The history of Ethereum Classic traces back to the early days of Ethereum when a hacker managed to steal $50 million worth of ether overnight, nearly escaping with it. This incident sparked an ideological conflict within the Ethereum community, raising the question of whether to adhere to the principle that “code is law” regarding the smart contracts governing the ecosystem or to make an exception to protect the community and return the stolen ether.

The debate culminated in a hard fork, resulting in the creation of a new Ethereum blockchain that took most of the community with it, while the original code and its community remained intact. This fork reversed the transactions and restored the stolen funds to their original owners. Those who upheld the “code is law” principle continued with the original code, which is now known as Ethereum Classic (ETC).

The price of Ethereum Classic is influenced by the broader cryptocurrency market, meaning it tends to rise and fall in correlation with larger assets. Currently, Ethereum Classic trades at less than ten percent of Ethereum's price, although the two cryptocurrencies can move independently.

Ethereum Classic operates under the assumption that no hard fork has occurred and is supported by those who advocate for the complete immutability of the blockchain.

In terms of functionality, Ethereum Classic operates similarly to Ethereum, despite the significant price differences. It is based on proof-of-work mining and smart contracts but does not share compatibility or updates with the Ethereum (ETH) codebase. Consequently, as Ethereum transitions from proof-of-work to proof-of-stake, these changes will not automatically apply to ETC unless the community develops them independently. Proponents of ETC argue that there is nothing preventing Ethereum (ETH) from executing another hard fork in the event of future hacks or corruption.