Introduction
Ethereum Classic (ETC) emerged in 2016 following a divisive hard fork of the Ethereum blockchain. It retains the original Ethereum codebase, supporting smart contracts and decentralized applications (dApps), with ETC as its native cryptocurrency. This guide explores ETC’s history, technical framework, and unique attributes.
The Birth of Ethereum Classic
The DAO Hack and the Hard Fork
In 2016, The DAO—a decentralized venture fund built on Ethereum—was hacked, losing $60 million in ETH. The Ethereum community voted to reverse the theft via a hard fork, but a faction opposed this move, arguing it violated blockchain immutability. Those who continued mining the pre-fork chain created Ethereum Classic.
👉 Explore the debate on blockchain immutability
Key Events
- July 2016: ETC launched with a 1:1 distribution to ETH holders.
- January 2019: ETC suffered a 51% attack, highlighting security challenges in PoW blockchains.
Technical Framework
Consensus Mechanism
ETC retains Proof-of-Work (PoW), unlike Ethereum’s shift to Proof-of-Stake (PoS). This decision aligns with its commitment to decentralization and immutability.
Monetary Policy
- Block Reward: Starts at 5 ETC, reduces by 20% every 5 million blocks (~2.5 years).
- Total Supply: Capped at 230 million ETC, making it deflationary.
Transaction Processing
- Block Time: 10–15 seconds.
- Throughput: ~6 transactions per block.
Security and Development
Network Upgrades
ETC’s codebase evolves while preserving core principles. Developers contribute via JavaScript, Python, Go, and other languages.
51% Attack Aftermath
The 2019 attack spurred efforts to enhance network security, including checkpointing and improved mining incentives.
Ethereum Classic vs. Ethereum
| Feature | Ethereum Classic (ETC) | Ethereum (ETH) |
|-----------------------|------------------------|-------------------------|
| Consensus | PoW | Transitioning to PoS |
| Supply Cap | 230 million ETC | No hard cap |
| Philosophy | Immutability-focused | Flexible upgrades |
👉 Compare PoW vs. PoS blockchains
FAQs
1. What makes Ethereum Classic different?
ETC adheres to the original Ethereum chain post-fork, emphasizing immutability and PoW consensus.
2. Is ETC a good investment?
ETC’s value hinges on its niche principles and adoption. Research its volatility and use cases before investing.
3. How can I contribute to ETC development?
Visit its GitHub repository to participate in open-source projects.
4. What happened during the 51% attack?
Attackers reversed transactions to double-spend ETC, prompting security upgrades.
Conclusion
Ethereum Classic represents a purist approach to blockchain, prioritizing immutability and PoW. While it faces challenges like scalability, its community remains committed to its original vision.