Ethereum Classic (ETC) is a blockchain-based computer platform specializing in smart contract functionality. It came into existence after a split within the Ethereum community over how to deal with an incident known as the DAO.
Basically, ETC is the original version of Ethereum and that’s why it is called Classic The DAO was a form of investor-directed venture capital fund, which raised $160 million via a token sale in May 2016. However, about a month later hackers exploited a vulnerability of the code and stole 3.6 million Ethers.
There was a 28-day waiting period before the hacker was able to transfer the stolen funds from the DAO account to another address. After contemplating for three weeks what action to take, the community decided to execute a hard fork on July 20, 2016 in order to undo the damage from the DAO failure.
The majority of the community, backed by Ethereum’s creator Vitalik Buterin, decided that the stolen amount is too big and may lead to the death of Ethereum, so a hard fork was performed and the stolen Ethers were refunded back to their original owners. However, some people believed that the blockchain must remain immutable, because the hack was due to an issue with the DAO itself, not because of any problems with the Ethereum network.
So, they organized and published their declaration of independence and since July 20, 2016 Ethereum Classic (ETC) became a competitor to Ethereum (ETH). The DAO hack outlined big philosophical and ideological differences in both projects, but in the end of the day they remain technically quite similar. Read more from investing.com…
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