Ethereum Classic (ETC) is a decentralized cryptocurrency that is based on the original Ethereum blockchain. It was created in 2016 as a result of a hard fork in the Ethereum network.
The hard fork occurred due to a disagreement among Ethereum community members about how to handle a hack that resulted in the loss of millions of dollars worth of Ether (ETH), the native token of Ethereum. Some members believed that the funds should be restored to their original owners, while others believed that the blockchain should be left as is, and that the funds should be considered lost.
As a result of the hard fork, the Ethereum blockchain was split into two separate chains: Ethereum (ETH) and Ethereum Classic (ETC). Ethereum Classic retained the original blockchain and its immutability principle, while Ethereum (ETH) implemented a new blockchain that reversed the hack and restored the lost funds.
One of the main differences between Ethereum Classic and Ethereum is their approach to immutability. Ethereum Classic is committed to the principle that “code is law” and that once a transaction has been added to the blockchain, it cannot be altered or reversed. This means that Ethereum Classic is considered to be more decentralized and trustless than Ethereum, which has the ability to change its code through hard forks.
Another key difference is the mining algorithm used. Ethereum Classic uses a Proof-of-Work (PoW) algorithm, which is similar to the one used by Bitcoin, while Ethereum is moving towards a Proof-of-Stake (PoS) algorithm. This means that Ethereum Classic is more resistant to centralization, as it is more difficult for a small group of miners to control the majority of the network’s hash rate.
In conclusion, Ethereum Classic (ETC) is a decentralized cryptocurrency that is based on the original Ethereum blockchain. It was created as a result of a hard fork in the Ethereum network and is committed to the principle that “code is law” and that transactions on the blockchain cannot be altered or reversed. Ethereum Classic is more decentralized and resistant to centralization than Ethereum, making it an attractive option for those who value immutability and decentralization in their cryptocurrency investments.