Ethereum Classic is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum Classic also provides a value token called “classic ether”, which can be transferred between participants, stored in a cryptocurrency wallet and is used to compensate participant nodes for computations performed.
The Ethereum Classic (ETC) cryptocurrency is traded on exchanges under the ticker symbol ETC. Gas, an internal transaction pricing mechanism, is used to prevent spam on the network and allocate resources proportionally to the incentive offered by the request.
Ethereum Classic Review
The Ethereum platform has been forked into two versions: “Ethereum Classic” (ETC) and “Ethereum” (ETH). Prior to the fork, the token had been called Ethereum. After the fork, the new tokens kept the name Ethereum (ETH), and the old tokens were renamed Ethereum Classic” (ETC). Ethereum Classic appeared as a result of disagreement with the Ethereum Foundation regarding The DAO Hard Fork. It united members of the Ethereum community who rejected the hard fork on philosophical grounds. Users that owned ETH before the DAO hard fork (block 1920000 owns an equal amount of ETC coin after the fork.
Ethereum Classic passed a technical hard fork to adjust the internal prices for various opcodes of the Ethereum Virtual Machine (EVM) on October 25, 2016, similar to the hard fork committed by Ethereum a week previously. The purpose of the hard fork was a more rational distribution of payments for resource-intensive calculations, which led to the elimination of the favorable conditions for attacks that were previously conducted on ETH and ETC coins. A hard fork held in the beginning of 2017 successfully delayed the “bomb complexity” that was added to the Ethereum code in September 2015 with a view of exponentially increasing the complexity of mining and the process of calculation of new network units. In late 2017, a hard fork occurred which changed the monetary policy with unlimited emissions to a system similar to Bitcoin.
In May 2016, a venture capital fund called The DAO built on Ethereum raised around $168 million, with the intention of investing in projects using smart contracts. In the same month a paper was released detailing security vulnerabilities with The DAO that could allow ether to be stolen. In June, 3.6 million Ether (approximately $50 million USD) was taken from accounts in The DAO and moved to another account without the owners’ consent, exploiting one of the vulnerabilities that had been raised in May. Members of The DAO and the Ethereum community debated what actions, if any, should occur to resolve the situation. A vote occurred and in July 2016 it was decided to implement a hard fork in the Ethereum code and to move the Ether taken in the exploit to a new smart contract through which it would be restored to the owners from whom it had been taken.
Ethereum Classic came into existence when some members of the Ethereum community rejected the hard fork on the grounds of “immutability”, the principle that the blockchain cannot be changed, and decided to keep using the unforked version of Ethereum.
Ethereum Classic underwent a technical hardfork to adjust the internal pricing for running various op codes on the Ethereum Virtual Machine (EVM) on 25 October 2016, similar to the hard fork the ETH chain did a week earlier. The goal was to more rationally price various compute-intensive and external reference commands to reduce the incentive for spammers who had conducted a month-long distributed denial-of-service attack on the Ethereum Classic network. A hard fork that occurred early 2017 successfully delayed the so-called “difficulty bomb”, originally added to Ethereum‘s code in September 2015 in order to exponentially increase the difficulty of mining, or the competitive process by which new transaction blocks are added to the network. The people who continued with Ethereum Classic advocate for blockchain immutability, and the concept that “code is law” against the pro-fork side (Ethereum) which largely argued for extra-protocol intentionality, decentralized decision-making, and conflict resolution.
Various critics of Ethereum Classic have denounced it as a scam and a potential theft of intellectual property, with similar controversial remarks being made on behalf of the opposing camp. Ethereum Classic has retained some users of Ethereum and has also attracted others from the wider crypto-community who reject contentious forks on ideological grounds. The project, however, is not officially supported by the Ethereum Foundation.
On June 29th, 2017 the Ethereum Classic Twitter account made a public statement indicating reason to believe that the Classic Ether Wallet Website had been compromised. Information security news organization Threatpost later reported that the compromise occurred due to a social engineering attack against the CEW websites domain registrar 1@1. The Ethereum Classic Twitter account confirmed the details released via Threatpost. The Ethereum Classic team worked with CloudFlare, a company specializing in internet security services, to place a warning on the compromised domain warning users of the phishing attack.
Division of Ethereum
The division of the initial Ethereum platform into Ethereum and Ethereum Classic happened after a big hacker attack on The DAO (decentralized autonomous organization) – the platform for venture investments on the base of Ethereum. In June 2016, the hackers managed to find a loophole in the defense and transfer about 50 million dollars from DAO – a third part of the collected amount.
As according to the terms of the smart contract, the funds could be used only 28 days after the transaction, there came a possibility to get back the stolen funds before the attackers could take them. During the search for a solution, the blockchain community has been divided.
Some people believed that the system should be “rolled back” to the moment of the attack on DAO and a new fork of blockchain should be created to return the stolen funds to all victims with the help of the smart contract. A part of the community made a stand against this decision stating that it defies the very principles of the blockchain as a self-regulated and democratic system.
However, the majority has voted for the division and so the present Ethereum platform has appeared. The part that was left on the old blockchain has created Ethereum Classic.
Ethereum Classic works via blockchain with smart contracts. Smart contracts are contracts with prescribed conditions that are fulfilled automatically when these conditions are achieved.
The participants of the blockchain network can give “classic ether” to each other, keep it in their wallets. With “ether, the node participants are also rewarded for carrying out calculations while checking transactions. The inner mechanism of the pricing formation of transactions, gas, is used for the prevention of spam in the network and distribution of resources proportionally to the incentive offered by the request.
How is Ethereum Classic related to Bitcoin?
ETC is a cryptocurrency used to pay for tasks such as installing new smart contracts.
Gas is a made up unit used to denote the amount of resources required to do tasks such as installing new smart contracts.
Users can buy Ethereum Classic on many cryptocurrency exchanges, however, most trading are on Fcoin and OKEx exchanges, it is possible to use Binance, Coinbase, Huobi, Bitfinex, Bithumb and other trading platforms.
Starting to work with this cryptocurrency, users often ask the question about the storages of Ethereum Classic. At the moment, there are a lot of Ethereum Classic wallets, the choice of the wallet depends on the goals and personal preferences:
- Ethecore Parity. This is a version of Ethereum Parity wallet for ETC coin. The wallet was developed by Gavin Wood and his team. It supports ETH and ETC.
- Classic Ether Wallet. This wallet is a fork of the well-known MyEtherWallet. It offers similar features. At the same time, users can access Classic Ether Wallet through a browser or a client application.
- Mist. The Mist wallet also supports Ethereum Classic. You can download it from the GitHub repository. This cryptocurrency storage was developed by the Ethereum Foundation team, it is worth noting that there are other forks of this wallet created by Ethereum Classic developers.
- Ledger Nano S is the most secure cryptocurrency storage option, as Nano S is the cold wallet of Ethereum Classic, and attackers will not be able to access the coins.
|Release Date||Code name||Milestones & Hard Forks|
|July 30, 2015||Frontier||The release of the Ethereum Genesis block.|
|March 14, 2016||Homestead||The 2nd major release of the Ethereum Classic platform, which introduced EIP-2, EIP-7, and EIP-8.|
|October 25, 2016||GasReprice||Repriced some operations to prevent DoS attacks affecting both Ethereum and Ethereum Classic networks. Introduced ECIP-1050.|
|January 14, 2017||Die Hard||Delayed the difficulty bomb which was originally intended to force the network to move from proof-of-work to proof-of-stake and added replay protection to prevent transactions on the Ethereum network being accepted on the Ethereum Classic chain. Introduced ECIP-1010 and EIP-155.|
|December 11, 2017||Monetary policy change||Change unlimited token emission to a fixed-cap monetary policy similar to Bitcoin with a hard cap of around 210 Million.|
Ethereum Classic vs Ethereum
On the base of Ethereum the cryptocurrency “ether” (ETH) is working, which the “classic ether” (ETC) of the Ethereum Classic platform has nothing in common with. Ethereum is constantly developing and releasing updates, but Ethereum Classic cannot use them. In addition, Ethereum supports more big players of the cryptocurrency market.
In the middle of October 2017, one “classic ether” is traded for $11.55 with the market capitalization of 1.112 billion dollars. At the same time, one ETH costs $293.37, and the capitalization of Ethereum is over 27.9 billion dollars.
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