Digital Currency: Ethereum and Ethereum Classic

A Brief Overview of the Ethereum DAO Hack

DAO, short for Decentralized Autonomous Organization, launched a fundraising campaign in 2016 to establish an investor-driven venture capital firm, enabling them to participate in block voting, crucial for the platform’s future.

Shortly after the launch of the Ethereum network, DAO conducted a token sale lasting 28 days. Within three weeks, DAO raised $150 million worth of Ether from over 11,000 investors. However, a vulnerability in DAO’s smart contract code allowed malicious actors to exploit it, resulting in the disappearance of over 60 million Ether from the fund, causing tremors in the blockchain community. This highly publicized disaster shed light on the drawbacks of decentralization and susceptibility to various forms of fraud experienced by Ethereum’s developers and their supporters.

A Brief Insight into Ethereum (ETH)

According to reports from Ethereum.org, Ethereum offers open access to digital money and user-friendly services for all, irrespective of their location or background. It represents not just a digital currency but a community-built technology underpinning the cryptocurrency Ethereum (ETH) and a plethora of applications available for use in contemporary times.

Ethereum, a prominent cryptocurrency supporting smart contracts and decentralized applications, empowers developers to create decentralized applications usable across multiple domains such as financial services, gaming, and NFTs. These applications are powered by smart contracts, enabling their execution when specific conditions are met.

Ether, a token generated on the Ethereum blockchain, facilitates the operation of decentralized applications. The complexity of the process determines the amount of Ether required for a smart contract. Developers earn Ether for each block they add to a record, including transaction fees derived from smart contracts. With a reward system in place, individuals are encouraged to utilize the platform to develop their decentralized applications.

Ethereum imposes no restrictions on the number of tokens that can be created over the years, although growth is capped at 4.5% annually.

A Brief Insight into Ethereum Classic (ETC)

Ethereum Classic, an open-source blockchain platform, emerged as a result of a blockchain split prompted by a hack on the original Ethereum network. This split gave rise to two distinct blockchains: Ethereum Classic and Ethereum. Utilizing the ticker symbol ETC, Ethereum Classic facilitates power transactions and smart contracts on the network.

The platform was fortified, and the hard fork facilitated the return of all stolen funds to their rightful owners. Subsequently, Ethereum Classic underwent iterative updates. The primary objective of Ethereum Classic is immutability, often referred to as ‘code is law.’

The Operational Dynamics of Ethereum Classic or ETC

Ethereum Classic, a fork of Ethereum in response to changes in the original Ethereum blockchain, focuses on preserving the fundamental aspects of Ethereum. Presently, Ethereum Classic does not align with any Ethereum updates like hard forks and operates under the ticker symbol ETC. Functioning on smart contracts, it generates Ether under the symbol ETC and operates in a domain where users cannot alter transactions on the blockchain’s history.

Conclusion

The debate between Ethereum and Ethereum Classic is undoubtedly philosophical. Ethereum remains steadfast in upholding the core code of the original Ethereum blockchain. Ethereum Classic, on the other hand, stands as an ethical endeavor. Hopefully, this discussion provides clarity on Ethereum versus Ethereum Classic. If considering investment in these blockchains, thorough perusal of this article is recommended. It will aid in determining the most suitable blockchain for your needs. So, dive into the details and make an informed decision.