Ethereum Classic (ETC) is an open source and public decentralized computing platform built on blockchain technology. It not only provides a decentralized, Turing-complete virtual machine, but can also execute various scripts through a global network of virtual machine nodes. The emergence of ETC is not only the continuation of technology, but also the embodiment of the decentralization concept of blockchain.
Basic concepts of Ethereum Classic
Ethereum Classic provides users with a token called “Ethereum Classic”. Users can store this token in a cryptocurrency wallet to provide node participants in the network with computing power. In order to prevent the system from being paralyzed due to large transactions, ETC adopts a Gas transaction pricing system, and all transactions that are willing to pay higher transaction fees will be prioritized.
Origin of Ethereum Classic: Ethereum Classic originated from a fork of the Ethereum platform. In April 2016, the decentralized autonomous organization The DAO was established and began to raise funds. In just one month, it raised more than 150 million US dollars in ETH, accounting for approximately 14% of the total ETH circulation at that time. However, on June 17, 2016, The DAO suffered a hacker attack, resulting in the theft of nearly one-third of the fundraising amount and approximately 5% of the total circulating supply of ETH.
Faced with such huge losses, divisions arose within the Ethereum community. Some people advocate modifying the Ethereum blockchain through a hard fork to recover losses; while others believe that this goes against the core value of decentralization of the blockchain. In the end, in a vote by community members, 97% of participants supported a hard fork to solve the problem.
Result of hard fork
After the vote, the Ethereum blockchain forked into two independent networks. The new network inherits the Ethereum name and continues to use Ethereum (ETH) as its cryptocurrency. The old network was renamed Ethereum Classic (ETC), which is what we are discussing today.
Ethereum Classic’s technological development: Ethereum Classic has experienced several important milestones during its development:
July 30, 2015 - Frontier: The birth of the first Ethereum block marks the beginning of the Ethereum ecosystem.
March 14, 2016 - Homestead: The second version of the Ethereum platform was released, further improving the functionality of the platform.
October 25, 2016 - GasReprice: Ethereum Classic officially forked from Ethereum into an independent currency and repriced certain operations to prevent DDoS attacks.
January 14, 2017 - Die Hard: This release delays the mining difficulty spike, allowing Ethereum Classic to postpone the switch from PoW to PoS mining.
December 11, 2017 - Monetary Policy Shift: Ethereum Classic’s monetary policy changes from unlimited supply to limited supply, limited to 210,000,000 ETC.
Callisto: a fork of Ethereum Classic
Callisto is a fork of Ethereum Classic and will be split into another cryptocurrency in the future, codenamed CLO. The emergence of Callisto marks the further expansion of the Ethereum Classic ecosystem, attracting more developers and investors to participate.
Advantages and challenges of Ethereum Classic: As an independent blockchain project, Ethereum Classic has its unique advantages and challenges. First of all, ETC adheres to the concept of decentralization and ensures the security and transparency of the network. Secondly, ETC’s Gas mechanism effectively prevents network congestion and improves transaction processing speed.
However, ETC also faces many challenges. Due to its fork from Ethereum, ETC has relatively low market awareness and acceptance. In addition, there are certain deficiencies in technical updates and community support, which puts ETC at a disadvantage in the highly competitive cryptocurrency market.
Future Outlook: Despite many challenges, Ethereum Classic still has broad development prospects. As blockchain technology continues to mature, ETC can further enhance the vitality of its ecosystem through cooperation with other blockchain projects. At the same time, as more and more users and developers join, ETC is expected to occupy a place in the future cryptocurrency market.
in conclusion
As an important part of blockchain technology, Ethereum Classic carries the concept and value of decentralization. Through continuous technical updates and community support, ETC is expected to play a greater role in the future digital economy. Whether you are an investor or a developer, understanding the history and development of Ethereum Classic will provide us with an important reference for understanding future blockchain trends.