Ethereum Classic Definition
Ethereum Classic is an open-source, blockchain-based distributed computing platform featuring smart contract functionality, which provides a decentralized Turing-complete virtual machine that can execute scripts using public nodes’ global network. It is a continuation of the original Ethereum blockchain – the classic version preserving untampered history, free from external interference and subjective tampering of transactions.
Ethereum Classic Key Points
- Ethereum Classic is the original unaltered version of Ethereum, split from Ethereum in 2016 after a hard fork.
- It supports the same functionality, including smart contracts and distributed applications (dApps).
- The core belief of Ethereum Classic is the principle of “code is law” where transactions are final and cannot be changed even in cases of hacking.
- It uses Proof of Work (PoW) just like Bitcoin, discouraging centralized pool mining.
What is Ethereum Classic
Ethereum Classic is the original algorithm of the Ethereum blockchain that decided not to divert its course after unknown hackers stole about $60 million Ether coins during the DAO debacle of 2016. Essentially, it delineates the classic ‘code is law’ ideology, where transactions once recorded on the blockchain cannot be reversed, even if they are due to hacking.
Why was Ethereum Classic Created?
Ethereum Classic was created after a hard fork in the Ethereum blockchain in 2016. This hard fork was a result of a fundamental disagreement within the Ethereum community on how to handle the DAO attack, where 3.6 million Ether were stolen. The Ethereum community decided to implement a hard fork to restore nearly all funds to the original contract. However, the segment of the community that objected to this formed Ethereum Classic, continuing the original Ethereum blockchain.
Who Uses Ethereum Classic?
Both developers and investors use Ethereum Classic. Developers use it as a platform to create and run smart contracts and decentralized applications. They appreciate Ethereum Classic’s strict adherence to decentralization and immutability. Investors, on the other hand, buy and hold the Ethereum Classic tokens (ETC) anticipating future value increase.
When is Ethereum Classic Used?
Ethereum Classic is used whenever the creation of smart contracts and dApps is required with a strict belief in the principle of decentralization and immutability. It’s also used when an individual or an organization wants to invest in a blockchain technology that believes in the philosophical principle where ‘code is law’.
Where Can Ethereum Classic Be Used?
Ethereum Classic can be utilized virtually anywhere internet access is available, and cryptocurrency trades are not restricted. It’s a global platform for developers around the world to write scripts on decentralized applications or for anyone to trade on several exchange platforms like Coinbase, Binance, and Kraken, among others.
How Does Ethereum Classic Work?
Ethereum Classic works by using blockchain technology to decentralize and democratize the development of applications. Smart contracts are its core feature. These autonomous scripts are self-operating and run without any downtime, sensoring, fraud, or third-party interference. It also uses a proof-of-work system for mining new ETC coins, much like Bitcoin. Therefore, Ethereum Classic’s protocol ensures absolute decentralization, immutability, and censorship resistance.
