Ethereum Classic: The In-Depth Beginner's Guide
Ethereum Classic came about after a hard fork of Ethereum in 2016. The fork was a result of the infamous DOA hack where around 50 million dollars worth of Ethereum was stolen due to what was considered an oversight in the code
Introduction
Ethereum is one of the oldest and largest cryptocurrencies and now being the second largest cryptocurrency in the world, with Ethereum Classic also ranking in the top 10 cryptocurrencies worldwide. Ethereum, after having been implemented in 2014 and to be effective was aimed at reaching out to a wide range of people and organizations and was originally the "Gold of the Digital Era." Yet, this type of adoption didn't happen as desired. Ethereum Classic came about as a result of a fork of Ethereum during the Ethereum Summer of 2016. The aim of this fork was to bring back more users and infrastructure support. Ethereum Classic became known as a "hard fork" because there were hard-coded rules for the coin-split to happen.
What is Ethereum?
A peer-to-peer computer network. Using blockchain technology, Ethereum enables the creation of decentralized applications that run off cryptography. The Ethereum network facilitates the development of decentralized applications (dapps) that run off the Ethereum network Ethereum Classic: A Refresher By Charles Wright, Founder, Decentralized Web Academy Before we get started, what is Ethereum? Let me give you a short explainer on what Ethereum is and what it does. In summary, Ethereum is a decentralized network. It is not controlled by any central authority and it runs on blockchain technology. Blockchains are general-purpose technology that exists for the purpose of recording transactions and maintaining digital rights and records.
Ethereum Classic
After a fork, there are two separate blockschains in the Ethereum blockchain. Ethereum and Ethereum Classic both share the same history, but the coin launched as Ethereum Classic will be the one people will be running. With that said, there are some obvious differences between Ethereum and Ethereum Classic. Ethereum has a fixed amount of "fuel", which is the name for the number of Ethers that have been sent through the network to compensate for electricity costs, work hours, and other expenses. This is the only way to pay for everything else on Ethereum. Ethereum Classic has its own version of the fuel. With Ethereum, you also can't send ETH to an exchange. Instead, you have to send ETH to the Ethereum daemon itself.
Ethereum Classic and the DAO hack
The details of the hack are still disputed with both sides offering conflicting accounts. However, it is fairly clear that a faulty program written in smart contracts written in Solidity was used to steal the funds from the DAO. The DAO is a decentralized organization which was attempting to implement a new way to fund projects. There is nothing new about DAOs. Most of us can remember our school playground and the venture capital firms which were gathering funds from us by promising us a huge financial return. The DAO took this to the next level and also allowed anyone to fund the project if they could come up with the required funding. The DAO had to have a governance system built in, so that members of the DAO could vote on any decision.
Ethereum Classic and the DAO fork
While this story has been covered in detail by other blogs (DADA Forever is a good one) you might like this write up from my friend Barry Silbert who launched the Grayscale Ethereum Classic Investment Trust, a fund which holds ETC All of the above is covered in more detail in the above linked blogs but if you want to get started on what ETC can offer to your portfolio then you might want to read this guide written by my friend Delma Tseng (Ethereum Clarity) who was a member of the Ethereum Foundation as a member of its PR team (I know, I know, no one is expecting him to have a scientific background, but still) The two key differences between Ethereum and Ethereum Classic are that Ethereum implements smart contracts, and Ethereum Classic implements Dark Trading.
Ethereum Classic and mining
Ethereum Classic was created from the same block chain of Ethereum. Theoretically, Ethereum Classic's concept is same as Ethereum's. ETH and ETC can both be mined but there are two difference things: ETH is mined on the same hardware as Ethereum but without the smart contracts, which in short means: ETH does not have a stable supply and it is capped. ETC is mined on the same hardware as Bitcoin but without the strict segregation from the rest of the blockchain. Hence, ETH and ETC both have equal chances of being mined. There is no strict segregation between ETH and ETC and there is no support for ETH to process ETC transactions. This means that you can send and receive funds in ETH, regardless of the direction of their monetary flow. Therefore, there is no "ETC" token either.
Conclusion
I highly recommend all of you to get to know this technology and even for those of you who are not yet interested in it, take a look at the post at the end of this article. Please remember to keep in mind that the following is just my personal opinion and should be taken in the context of each user's requirements. I would love to hear your feedback in the comments section below, let me know what you think about the post, and if there is anything you would like me to write about.