What is Ethereum Classic (ETC)?

Ethereum Classic (ETC), originating from a hard fork of Ethereum (ETH) in July 2016, stands as an independent blockchain with a primary purpose as a smart contract network. Positioned to host and support decentralized applications (DApps), Ethereum Classic utilizes its native token, ETC, to facilitate transactions and operations within its ecosystem.

Since its inception, Ethereum Classic has actively pursued a distinctive identity, intentionally diverging from Ethereum's technical roadmap over time. This intentional divergence reflects a strategic effort to establish Ethereum Classic as a unique and autonomous blockchain network with its own set of principles and priorities.

The foundational mission of Ethereum Classic was initially shaped by a critical event in the Ethereum ecosystem – a major hacking incident resulting in the theft of 3.6 million ETH. In response, Ethereum Classic emerged as a preservationist force, aiming to maintain the integrity of the original Ethereum blockchain. This commitment underscores Ethereum Classic's dedication to principles such as immutability and resistance to altering historical blockchain records, setting it apart in the evolving landscape of blockchain technologies.

Who are the founders of Ethereum Classic?

Ethereum Classic traces its origins to a significant event in Ethereum's history, specifically the contentious hard fork that transpired in July 2016. The true architects of Ethereum Classic are the original developers of Ethereum, including notable figures such as Vitalik Buterin and Gavin Wood. This divergence occurred when a disagreement arose among participants regarding whether to implement a blockchain reversion, effectively nullifying the consequences of a substantial hack impacting The DAO, a decentralized autonomous organization (DAO) that had raised approximately $150 million in an initial coin offering (ICO) months earlier.

Ethereum Classic emerged as the chain that resisted the proposed reversion, distinguishing itself from the forked Ethereum network. It is crucial to note that Ethereum Classic's development is characterized by a decentralized and permissionless ethos, wherein its global development community operates as a "do-ocracy." According to developers, there is no official team associated with the project, and participation in the development community is open to anyone interested in contributing to the ongoing evolution of Ethereum Classic. This emphasis on a collaborative and inclusive approach highlights Ethereum Classic's commitment to decentralized principles in both its inception and ongoing development.

What Makes Ethereum Classic Unique?

Ethereum Classic stands out with its primary objective of preserving the original state of the Ethereum blockchain, refraining from artificially undoing the consequences of the DAO hack, which differentiates it from its forked counterpart.

Initially drawing support from those who dissented with Ethereum's response to the DAO hack, Ethereum Classic has evolved to garner a broader fan base, including notable investors like Barry Silbert, CEO of the investment firm Grayscale. The network's commitment to maintaining the blockchain's historical integrity has become a central aspect of its appeal.

Operated as a voluntary organization, ETC developers maintain a non-profit orientation, steering clear of transforming the network into a for-profit entity. Transaction fees, akin to Ethereum, are incurred by users, and miners receive compensation based on the proof-of-work (PoW) mining algorithm's computational effort.

In contrast to Ethereum's trajectory toward a proof-of-stake (PoS) mining algorithm, Ethereum Classic remains committed to its PoW consensus mechanism. Meanwhile, ongoing development efforts focus on future enhancements, including scaling solutions, underscoring Ethereum Classic's dedication to technological progress and resilience.

Explain network security of Ethereum Classic.

Despite its resilience, being a minority chain has exposed Ethereum Classic to recurrent attacks, notably several instances of 51% attacks. These malicious activities aimed to seize control of the mining hash rate, enabling the execution of spurious transactions and the potential for double-spending coins. The most recent attack occurred in August 2020, prompting a reassessment of the network's security measures.

In response to the vulnerabilities exposed by the 51% attacks, Ethereum Classic underwent a transformative upgrade known as the Thanos upgrade in 2020. This modification involved a change to the underlying Ethash mining algorithm, aiming to enhance the network's resistance to such attacks and fortify its overall security posture. The Thanos upgrade exemplifies Ethereum Classic's commitment to adaptability and resilience in the face of evolving cybersecurity challenges.

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