What Is Ethereum Classic?
Ethereum Classic (ETC) is a decentralized, open-source, blockchain-based cryptocurrency platform that allows the execution of smart contracts. It materialized in 2016 following a hack on The DAO, a smart contract on the Ethereum blockchain. The incident led to a split between the Ethereum community and the original blockchain, with the more significant faction deciding to reverse the hack and recover the stolen funds.
Background
Initially, Ethereum Classic was simply known as Ethereum, a project initiated by Vitalik Buterin and the Ethereum Foundation in 2015. The DAO hack in 2016 caused a disagreement within the Ethereum community, leading to the split. Ethereum Classic is the original, more minor blockchain that did not reverse the hack.
How It Works
Like Bitcoin, Ethereum is a blockchain platform with an additional feature: it can execute self-running smart contracts and record value transactions. Ethereum Classic enables smart contracts through decentralized governance, eliminating the need for a third party like a lawyer.
Key Takeaways
- Ethereum Classic (ETC) is a decentralized, open-source, blockchain-based cryptocurrency that supports the execution of smart contracts.
- Ethereum Classic came into existence in 2016 after a disagreement within the Ethereum community following a hack on The DAO, a smart contract on the Ethereum blockchain.
- Ethereum Classic is the original, more minor Ethereum blockchain that did not reverse the hack.
- Ethereum Classic, like Ethereum, can execute self-running smart contracts, which are executed once the contract conditions are met. This feature differentiates Ethereum Classic from other cryptocurrencies like Bitcoin.
