Ethereum Classic (ETC) is a continuation of the original Ethereum blockchain following a hard fork in July 2016. This split was the result of a disagreement within the Ethereum community after a significant portion of funds were stolen in the DAO (Decentralized Autonomous Organization) hack due to vulnerabilities in its smart contract code. The fork aimed to return the stolen funds to their original owners by altering the blockchain's history, which led to the emergence of two separate networks: Ethereum (ETH), which implemented the fork, and Ethereum Classic (ETC), which continued on the original blockchain without the alterations.
Ethereum Classic retains the original vision of Ethereum as an open, decentralized platform that enables smart contracts and decentralized applications (DApps) to be built and operated without any downtime, fraud, control, or interference from a third party. ETC operates on a proof-of-work (PoW) consensus mechanism, similar to Ethereum before its transition to proof-of-stake (PoS) with Ethereum 2.0.
The native cryptocurrency of the Ethereum Classic network is ETC, and is used to compensate miners for processing transactions and securing the network, as well as to pay for computational services on the network.
The principle behind Ethereum Classic is "code is law," emphasizing the immutability of the blockchain and the idea that transactions and smart contracts should be irreversible. Supporters of Ethereum Classic argue that the decision to revert the blockchain to refund DAO investors undermined the principle of immutability, which is crucial for the integrity and trustworthiness of any blockchain system.
The Ethereum Classic network has implemented several upgrades focusing on enhancing security, network stability, and scalability while maintaining compatibility with Ethereum's ecosystem. This includes efforts to resist centralization of mining power through algorithm changes and enhancements to the network's overall resilience against attacks.
