What is Ethereum Classic?
Ethereum Classic is a secure, public, decentralized platform for running smart contracts. A smart contract is an application which helps exchange money, property, shares, or anything of value in a transparent, conflict-free way while.
Ethereum Classic was created when its predecessor, Ethereum (ETH), split into two separate coins.
To understand this split and where Ethereum Classic came from, you have to start with the DAO. The Decentralized Autonomous Organization (DAO) was going to be a decentralized venture capital fund. If you wanted a say in how the direction of the decentralized applications (Dapps) would get funded, then you would buy DAO tokens with Ether.
DAO was attacked by a hacker who saw a loophole in the network and took $50 million in funds. A hard fork was created in order to return the stolen funds back to the DAO token holders. That hardfork is what created Ethereum Classic.
Ethereum Classic and Ethereum have similar features, such as the creation and deployment of smart contracts. They are both decentralized, and have the same specs: average block time, size, and reward.
5 Things to Know about Ethereum Classic
- ETC was created through a hard fork of ETH- The hard fork occurred because of the DAO hack that lost its token holders $50 million dollars.
- ETC is an open source-The entire community has access to what is being planned for the token. Everything is available to the ETC community and anyone can contribute in the development.
- ETC isn’t just a digital currency-Ethereum Classic, like Ethereum, is a smart contract. A computer protocol that enforces a contract using the blockchain ledger. These smart contracts can have programs written on them, like Decentralized Applications.
- ETC transactions are final-Once a contract is written it cannot be reversed and it will not be removed from the blockchain.
- ETC is decentralized- Like most cryptocurrencies, Ethereum Classic has no central authority or third party involved. The price rests in the hands of the ETC community.
The Future of Ethereum Classic
Ethereum Classic has largely trailed behind its predecessor in price, however, it has found life in projects which have kept it relevant and valuable. For example, events selling tickets and passes have turned to Ethereum Classic to tackle the problem of bots purchasing tickets in mass and reselling at exorbitant prices. With Ethereum Classic’s blockchain technology, an organizer can create smart contracts and rules in every ticket to avoid ticket hoarding.
Ticketing is just one example of the many industries that may begin to use blockchain technology and Ethereum Classic. This digital asset is here to stay.