What does the term Ethereum Classic mean?
Before going straight to the Ethereum Classic, it is worthwhile taking a moment to understand the history of Ethereum and The DAO.
Code is Law. Or is it?
“”Code is Law”” was the slogan of the Ethereum Foundation – and the word “”was”” should be emphasized here. This was often stated in the lectures of founder Vitaliy Buterin.
Perhaps unsurprisingly this slogan and the whole concept of this platform, which is based on “”intelligent contracts””, has pleased many programmers – especially those whose work is closely intertwined with industry. Ethereum quickly gathered a large community and not just ordinary programmers or crypto-anarchists, but some of the world’s largest entrepreneurs.
The collapse of The DAO
The DAO was created against the background of this successful project, an independent investment fund working on the platform of Ethereum. It has its own individual internal token and allegedly supports the fully decentralized management model.
Many of you may have heard about the difficulties that have beset this project since its beginning. Over $50 million was “”stolen”” from the fund, for example, supposedly by an unknown hacker who exploited an already known security hole in the code of the contract.
This theft led to a sharp drop in the price of DAO tokens and, of course, to a nearly twice as high price slump at Ethereum (ETH). The hacker’s wallet was frozen with the fund’s assets and it was subsequently decided to carry out a “”hardfork””. This means, roughly speaking, that a copy of the original Ethereum network would be created to correct this vulnerability.
Decentralization was a myth
Exactly half of the community considered decentralization to be a myth. This was because decentralization implies a fully autonomous operating system where a contract must be made, independent of the human factor. After the theft, however, there was a direct intervention by the developers and code changes, which led to a completely negative response in many.
On the one hand is the loss of no less than $ 50million from the fund of The Dao. On the other, is the loss of key ideas, the decentralization of the platform, and non-interference in the processes of intelligent contracts by the people.
Background of the Hardfork
Against this background, the community has been divided into two groups. There are those who support the hardfork and seizure of funds from the hacker. These are opposed by those who believe that the attacker did not hack anything but merely used a functional option of the contract and honestly earned the money (strictly speaking, this is true).
The developers themselves started a raw, unprotected project to earn money more quickly.
As expected, the vote revealed that the majority did not like the idea of decentralized contracts, but were behind the large sum of money. This later led to many strongly negative reactions.
The birth of Ethereum Classic
In view of this was the emergence of the above-mentioned development, Ethereum Classic (ETC). The cryptocurrency has preserved the original Ethereum network without the Hardfork and without direct intervention from outside.
Many were surprised by the fact that one of the most authoritative crypto exchanges – Poloniex – which was famous for its conservatism, added ETC trading very quickly. Already in its first trading days, Ethereum Classic has grown by more than 250%. However, experts have attributed this to trade speculation from major traders.
After the Poloniex Exchange, Bittrex and Kraken, the ETC cryptocurrency also entered the market, which in turn confirms the recognition of the cryptocurrency at a high level. Some large mining pools (http://ethc.epool.io and http://pool.ethereumclassic.com) also supported the idea of maintaining the original Ethereum blockchain and allowed users to mine the ETC in their pools.
Basic ideas and the principles of Ethereum Classic
The ideology is that the project believes in decentralized blockchains that are accessible to everyone and protected from censorship. They believe in the original concept of Ethereum – an ethereum as a world computer and without the ability to somehow roll back a smart contract or block the results of its implementation.
The development team
Currently, two development teams are working on the Ethereum Classic applications:
The ETC development team
ETC Dev Team develops Geth Classic, written in the Go programming language. It is headed by Igor Artamonov (Splix). The team consists of six paid developers from Go and Rust. The ETC Dev team also includes five unpaid consultants, a strategic analyst and a marketing manager.
Ethereum Commonwealth Team
The Ethereum Commonwealth team is developing the ERC223 standard, which supports the reward program. It is led by Dexaran, an anonymous developer in the Ethereum Classic Community. The team is busy porting and developing the Ethereum protocol updates in the Ethereum Classic network.
Ethereum Classic appeared as a result of a disagreement. The platform combines the members of the Ethereum community, who rejected DAO Hard Fork for philosophical reasons. People who had their ETH in the balance sheet up to the DAO Hard Fork (1900000 blocks) got the same number of ETCs after the Hard Fork.
Ethereum Classic (ETC) is a blockchain based cryptographic platform for the development of distributed applications based on open-source smart contracts. It is a decentralized Turing full virtual machine and an Ethereum (EVM) virtual machine that can execute programs in the public nodes of the network.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.