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What is Ethereum Classic? ($ETC)

Jaiya Gill
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What is Ethereum Classic? ($ETC)

Ethereum Classic is a blockchain that arose from a hard fork of the Ethereum blockchain as a result of a high profile hack.

What is Ethereum Classic ($ETC)?

Ethereum Classic is a hard fork of the Ethereum blockchain. The Ethereum vs Ethereum Classic fork arose as a result of indifferences in the original ethereum community over the Ethereum ‘The DAO’ hack of 2016. Since the fork, Ethereum Classic has focused on immutability as a core foundation of the project. ETC is far less popular than Ethereum to this day.

The DAO Hack

The DAO was an early decentralized autonomous organization (DAO) launched in 2016, which was intended to be an investor-directed venture capital firm. The project was lauded as a revolutionary project, raising $150 million USD worth of ether (ETH) and in additon it was one of the earliest crowdfunding efforts and high-profile projects built on the Ethereum blockchain.

However, trouble struck The DAO less than three months after its launch, The DAO was hacked and $60 million of ether was stolen. The Ethereum blockchain upon which The DAO launched was forked (in a controversial decision) to allow the original investors to recover their funds, resulting in the creation of Ethereum Classic.

How does Ethereum Classic work in a nutshell?

Ethereum Classic shares functional similarities to the pre Proof-of-work Ethereum blockchain, running a copy of the Ethereum blockchain. It is almost the same in every way, allowing users to write and deploy smart contracts.

The Ethereum Classic token $ETC is used as a transaction fee token (gas) on the blockchain, in a similar way to how Ethereum is used on its sister blockchain.

Learn more about Ethereum Classic

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