Sunday, July 14, 2024

Ethereum Classic and the Dao Project

Ethereum Classic The Real Story (ETC)

The Ethereum Classic is the split of the ordinary Ether token which means another token that also has its blockchain but it is identically to the original Ethereum blockchain.
The ticker symbol for Ethereum Classic is “ETC” compared to the standard Ethereum which is “ETH”.


When was Ethereum classic created?

The Ethereum Classic (ETC) was created on July 30, 2015. Followed by the original Ether (ETH) after a hack in Dao, Smart contract project.

But why do we need to make a perfect replica of the Ethereum?

The Ethereum platform

This is a very interesting story. In 2016, a project was built on the Ethereum platform: an ICO spring called Dao. This business model allows companies and organizations to follow predefined procedures. And this without any human factor intervention,  and all by smart contracts. This smart contract project was a very promising project. Thus it managed to raise $ 150 million in under a month.

Ethereum Project

The project itself was incomplete. Shortly after it was launched, several security breaches were discovered. A hacker managed to break through the Dao system and actually put his hands on 3.6 million Ether. At that time the value of the loot was close to $ 50 million.

Ethereum Platform Security

In order for the hacker to withdraw all that he managed to steal, he had to wait 28 days. This was because of the actual set in the Dao’s smart contract. Hence, there was a 28-day window for the entire Ethereum community and the Dao developers to decide what to do about the issue.

Discussions have started whether to allow the hacker to get away with the money without taking a certain position on the Ethereum platform or actually to take some action to prevent the stealing. Such a case of not taking action could definitely harm the Ethereum platform in the future. 

In the end, a decision was made with the majority of votes to split the Ethereum blockchain to another block. thus allowing the return of the stolen Ether and canceled the hacker’s breach.

This happened just the day before the 28th day that the hacker could actually take all of the $ 50 million. The decision was made to split the original blockchain with the hacking and to call it Ethereum Classic. The brand new chain of the split  is the well known original Ethereum

Short Summary: 
 – Original Ethereum ETH: Continued as a new chain.
 – Ethereum Classic – ETC:  Relies on the old chain.

So in practice, Ethereum Classic is one to one like the regular Ethereum, but it supposedly carries with it the history that was the Dao project.

What Mining algorithm is Ethereum Classic?

The mining Algorithm of Ethereum Classic (ETC) is Ethash, the block time is around 13.98s.