Ethereum Classic (ETC) is an open-source, decentralized blockchain platform that supports smart contracts. It was created in 2016 after a hack on the DAO (a project built on the Ethereum blockchain) caused a split. Most people decided to reverse the hack and return the stolen funds, but some chose to keep the original blockchain intact, which became Ethereum Classic. While both Ethereum and Ethereum Classic share the same code, they differ in their technical and philosophical approaches.
⚫️History of Ethereum Classic
Ethereum was launched in 2015 by Vitalik Buterin and the Ethereum Foundation, quickly becoming popular for ICOs. One of the largest ICOs, The DAO, raised over 11 million ETH but was hacked due to a smart contract bug, with hackers stealing about a third of the funds.
In response, some wanted to reverse the blockchain to recover the stolen funds, while others opposed it, fearing future bailouts. This led to a split: the new network kept the name Ethereum, and the original network became Ethereum Classic (ETC). ETC still uses ether but with the symbol ETC. After Ethereum moved to proof-of-stake in 2022, many miners migrated, but ETC continues to support decentralized apps.
⚫️Concerns About Ethereum Classic
Ethereum Classic (ETC) faces several challenges, with scalability being one of the main concerns. The network can only handle 10 to 20 transactions per second, which is significantly lower than traditional payment systems. Despite software upgrades, scalability remains a major hurdle. Additionally, Ethereum continues to be the more popular network, with its ETH token ranking second in value after Bitcoin.
🔹Ethereum Classic has faced challenges since splitting from Ethereum but continues to be developed, with a steady group of traders, investors, and users. Its future will depend on its ability to stay relevant and maintain its appeal as a cryptocurrency and blockchain.
