Ethereum Classic is an autonomous blockchain platform that emerged from the discussion of how to solve the problem of the 2016 hack of the Ethereum blockchain.
While the former had chosen to use the option of introducing a hard fork to reverse the effects of the hack, Ethereum Classic maintained the history of the initial blockchain.
Currently, the platform is operating independently as another blockchain with its own currency called ETC and capable of running smart contracts and dApps.
Ethereum Classic History Originated in the Blockchain Fork of 2016
In 2016, there was a blockchain fork that led to the emergence of Ethereum Classic. The DAO was a decentralized autonomous organization built on the Ethereum blockchain.
It served as a venture capital fund and managed to raise over $100 million via a token sale. However, there was a weakness in the code of the contract that helped hackers steal millions of dollars worth of ETH.
The suggested solution required carrying out a hard fork that would revert the exploit and return the investor money. Most of the Ethereum community, along with its creator, Vitalik Buterin, agreed with this proposition.
However, there was also a group that was not very pleased with the notion of changing the transaction record of the blockchain.
Therefore, there were two separate chains:
- Ethereum (ETH): conducted the fork and countered the attack.
- Ethereum Classic (ETC): remained the original blockchain without changes in previous transactions.
How Ethereum Classic Functions Nowadays
Ethereum Classic is a decentralized blockchain that operates on the Proof of Work consensus protocol. The miners process the transactions and get the reward in the form of ETC tokens.
The major difference from Ethereum is that while the latter switched to Proof of Stake in 2022, Ethereum Classic still uses Proof of Work.
Moreover, smart contracts are supported by Ethereum Classic, and developers can develop their DApps, NFT projects, blockchain games, and other decentralized applications.
Several key features separate Ethereum Classic from its counterpart:
- The supply of ETC is limited to 210.7 million coins.
- Blockchain immutability remains its priority.
- It supports a lot of technologies that were originally created for Ethereum, but the two chains have since diverged.
Ethereum Classic Network Development Timeline
| Year | Development |
| 2015 | Launch of Ethereum mainnet |
| 2016 | The DAO hack caused the division between Ethereum and Ethereum Classic |
| 2017 | The community has adopted a fixed monetary policy with a limit on ETC supply |
| 2019-2020 | Network was subjected to several 51% attacks |
| 2020 | The development team has deployed MESS to enhance the network security |
| 2022 | The latest hard fork, Mystique, is deployed |
Ethereum Classic and Ethereum Have Continued on Different Paths
Even though both networks emerged from the same blockchain, they have diverged in many aspects at present. Ethereum provides an ecosystem of a much wider variety of decentralized apps and employs Proof of Stake as the consensus algorithm.
Ethereum Classic is still running independently and is using the original concept of blockchain history. It has retained the concept of Proof of Work mining as well as the limited token supply, while Ethereum has an unlimited supply of tokens. The network has also implemented sidechain deployment independently.
Ethereum Classic has suffered security threats due to lower participation in its network. It was attacked through a 51% attack several times during 2019 and 2020, where the attackers gained majority power in the network.
Some of the security enhancements introduced by developers to mitigate future attacks include the Modified Exponential Subjective Scoring (MESS).
Conclusion
Despite being separated almost a decade ago from its origin, Ethereum Classic is still operating as an independent blockchain. This platform keeps the original blockchain history that had been created before the DAO event.
In addition, the independent development of Ethereum Classic has made it distinguishable from Ethereum in its monetary policy, increased security, and technology roadmaps.
FAQs
What is Ethereum Classic?
Ethereum Classic is a separate blockchain that came into existence after the Ethereum hard fork of 2016, which uses ETC as its native currency.
Why was there a split between Ethereum and Ethereum Classic?
It is because of disagreements about whether the Ethereum blockchain should be changed to undo the losses suffered due to the attack on the DAO.
Does Ethereum Classic use Proof of Work?
Yes, it uses PoW as a part of its blockchain defense strategy.
