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Author: Admin | 2025-04-28
Ethereum Classic is a hard fork of the Ethereum blockchain that maintains a Proof of Work consensus mechanism and capped supply.Ethereum Classic is a hard fork of the Ethereum blockchain that maintains a Proof of Work consensus mechanism and capped supply.A hard fork refers to a change in blockchain rules that results in the creation of two separate branches of the blockchain. In one branch (or fork), the chain’s nodes (or miners) validate transactions and produce blocks while maintaining the old rules. In the other branch, nodes upgrade their software and operate by the new set of rules.Early in the history of the Ethereum blockchain, a decentralized autonomous organization (DAO) called “The DAO” raised millions of dollars to create an opportunity for crypto-based investments. The DAO was based on a set of smart contracts which ended up being hacked and resulted in many Ethereum users losing their valuable cryptocurrency. This ultimately led to the hard fork that created Ethereum, where the funds were restored, and renamed the old chain Ethereum Classic.Hard forks have also occurred several times in Bitcoin’s history, resulting in the Bitcoin Cash and Bitcoin Gold forks. Hard forks are also the process by which Ethereum continues to undergo upgrades, including its switch to Proof of Stake.ETHEREUM CLASSIC ESSENTIALSEthereum Classic is a hard fork of the Ethereum blockchain that uses a Proof of Work consensus mechanism and whose native coin is the ETC cryptocurrency.The hard fork that created Ethereum Classic was implemented due to a large exploit of the smart contracts belonging to a decentralized autonomous organization called “The DAO” in 2016.A few differences between Ethereum and Ethereum Classic include the latter’s dedication to Proof of Work, its decision to implement a capped supply with a fixed emissions curve, and its smaller (but dedicated) community.How was Ethereum Classic created?The DAO was launched in April 2016 through a crowdsale that raised over $150 million and distributed its DAO token to investors. As a result of its popularity and massive early investment, The DAO controlled about 14% of all ETH tokens. This became problematic when several security flaws were discovered in its smart contracts, which were ultimately exploited for $50 million worth of ETH—fewer than 2 months after the crowdsale began.Although attempts were made to recover the funds from the hacker, The Ethereum Foundation ultimately set a vote for a hard fork, creating a new chain that would formally move
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