Ethereum Classic: Code is Law!
Ethereum Classic is the longest running Smart Contract Platform, the Romance of Dogmatism, 'Doomsday Chariot' of cryptocurrency, and Purely interpreted ‘the code is law’. ETC is the native currency of Ethereum Classic, and original Currency of Ethereum.
The Ethereum and Ethereum Classic were the same blockchain. Before the start ofETC’s journey, please check What is Ethereum(ETH)and What is DAO on our website.
Hacking incident on The DAO
On June 17, 2016, hackers exploited a vulnerability in The DAO and siphoned off a third of the DAO's funds which totaled $50 million. The vulnerability discovered by hackers is actually very obvious.
If someone wants to remove the DAO, they can do it by sending a request. Then the split function will follow these two steps:
1. It returns users their ETH in exchange for DAO tokens.
2. It records the transaction in the ledger and updates the internal token balance.
The hacker does is recurse by sending the request, thus creating the split function:
1. It takes DAO tokens from users and gives them the requested ETH.
2. Before recording the transaction, a recursive function is used, which returns the code and transfers more ETH for the same DAO token.
This continued, $50 million worth of ETH was registered in the Child DAO until it was mined. After that everything in the Ethereum community fell apart.
But there is a critical point to note here, that The DAO Hacker did not exploit anything in the underlying Ethereum protocol, and They also did not "break the rules" of The DAO contract.
Hard Fork of Ethereum
After the hacking incident 70% of the lost funds were recovered, but 30% remained in limbo. There were several options on the table, whether it was acceptable to implement a "Hard Fork'' of Ethereum is the main debate in the community. Hard fork is a backwards-incompatible protocol change with the purpose of violating the promise of "Build Unstoppable Applications' , and restoring all the stolen resources. During the debate The Ethereum Foundation attempted to maintain a stance of neutrality. The Coin votes are executed, where 1 ETH = 1 vote, the result of the vote is ‘more than 50% support Ethereum Hard fork’, but is it a real fair vote? Everyone has their own idea.
After the hard fork, Ethereum Classic continues to follow the original network rules and has remained true to the original Ethereum vision. By refusing to retrieve funds from DAO attackers, it builds itself into a truly irreversible blockchain, which better reflects the fair concept of "decentralization". It is the Romance of Dogmatism, they totally believe ‘The Code is Law’.
The Ethereum Classic community quickly organized into a new decentralized emergent social order, declared independence from The Ethereum Foundation and launched EthereumClassic.org. The statement is as follows:
Let it be known to the entire world that on July 20th, 2016, at block 1,920,000, we as a community of sovereign individuals stood united by a common vision to continue the original Ethereum blockchain that is truly free from censorship, fraud or third party interference. In realizing that the blockchain represents absolute truth, we stand by it, supporting its immutability and its future. We do not make this declaration lightly, nor without forethought to the consequences of our actions.
ETC uses a PoW mining algorithm, and the mining reward decreased from 3.2 ETC to 2.56 ETC per block in April 2022
Price of ETC
ETC is the currency of Ethereum Classic. After the hard fork the price of ETC was around $1, it rose to $10 in May 2017, and increased to about $30 during Dec 2017 to Mar 2018. After that, it slowly fell below $10. Later, ETC started to rise from March 2021 and reached its highest point of $94.75 in May. Then it continued to fall, in July 2022 the price was around $15.
Hope you have a nice trading day!