Ethereum's blockchain history took a dramatic turn in June 2016 when a hacker exploited the DAO protocol, stealing over $50 million. The community's response—a hard fork—created two parallel networks: Ethereum (upgraded chain) and Ethereum Classic (original chain). Five years later, the London Hard Fork marks another pivotal moment for Ethereum.
Key Differences Between Ethereum and Ethereum Classic
| Feature | Ethereum | Ethereum Classic |
|---|---|---|
| Consensus Algorithm | Transitioning to Proof-of-Stake | Proof-of-Work |
| Cryptocurrency | ETH (unlimited supply) | ETC (capped at 210 million) |
| Philosophy | Progressive upgrades | Immutability preservation |
Understanding Hard Forks
A hard fork represents a permanent divergence in blockchain protocols, requiring all nodes to upgrade. This creates two independent chains—each following its own rules.
"Hard forks embody blockchain's democratic nature—where communities decide technological evolution." — Blockchain Analyst
The DAO Hack and Ethereum Classic's Birth
- DAO's Rise: Crowdfunded $150M in a month for Ethereum projects
- The Exploit: Hackers drained $50M via recursive call vulnerability
The Fork:
- Ethereum: Rolled back transactions
- Ethereum Classic: Preserved original chain
London Hard Fork: 5 Critical EIPs
EIP-1559: Gas Fee Revolution
- Introduces base fee burning (reducing ETH supply)
- Replaces auction-style fees with algorithmic pricing
- Impact: Miners earn less; ETH becomes deflationary
👉 How EIP-1559 affects ETH's long-term value
Other Notable EIPs
- EIP-3198: Enables smart contracts to access base fees
- EIP-3529: Reduces gas refund loopholes
- EIP-3554: Delays difficulty bomb until December 2021
Post-Fork ETH Performance
- Price surge: 12% to $3,048.50 (August 2021)
- Burned ETH: 13,564.9 ETH in first 4 days
- Market sentiment: Positive shift toward PoS adoption
Ethereum Classic's Philosophy
While Ethereum evolves, ETC remains committed to:
- Proof-of-Work integrity
- Decentralization principles
- Network immutability
FAQ Section
Q: Will Ethereum Classic implement EIP-1559?
A: Unlikely—ETC maintains its original fee structure.
Q: How does fee burning affect ETH supply?
A: Creates deflationary pressure, potentially increasing value.
Q: Can both chains coexist long-term?
A: Yes—they serve different ideological and technical niches.
The Future of Ethereum Ecosystems
Industry experts predict multiple Ethereum-compatible chains will emerge—mirroring Linux's branching development. This diversity could drive innovation while maintaining cross-chain compatibility.
👉 Exploring Ethereum's multi-chain future