What is Ethereum Classic (ETC)? Ethereum Classic is a proof-of-work blockchain wielding smart contract functionality, on which developers can build decentralized applications (DApps). The Ethereum Classic network’s native asset is the ETC cryptocurrency. Ethereum Classic was born in 2016, the result of Ethereum community disagreements following The DAO hack.
How does Ethereum Classic (ETC) work?
The Ethereum blockchain, accompanied by its coin, Ether (ETH), launched in 2015. In 2016, a company known as Slock.it ran a sale for an Ethereum-based decentralized autonomous organization (DAO) called “The DAO,” tallying $150 million worth of ETH (based on ETH prices at the time) during the sale. In turn, DAO Tokens were distributed to investors. The DAO itself aimed to invest in Ethereum-specific projects as a type of decentralized fund, with DAO Tokens designed to divvy out profits to owners as well as give them a say on where The DAO would invest.
Shortly following the crowdsale, a malicious entity exploited a smart contract bug and captured a sizable portion of The DAO’s ETH. The community was significantly divided on which course of action the blockchain should take as a remedy. White hat hackers were able to take back 70% of the stolen ETH, but 30% remained in question. A hard fork served as an alternative to regaining that final 30%.
Ethereum (ETH) vs. Ethereum Classic (ETC)
A controversial vote was tallied among ETH holders, resulting in a choice to complete the hard fork and remedy the stolen asset situation. The fork resulted in two separate blockchains: Ethereum with its ETH asset and Ethereum Classic with its ETC coin.
The Ethereum Classic community holds firmly to Harvard professor Lawrence Lessig’s adage “Code is Law,” essentially putting great importance on code as an objective and final decision-maker. Therefore, the community disagreed with the fork and direction of the Ethereum blockchain.
Ethereum Classic price today
The Ethereum Classic blockchain itself does not directly have a price, although its native asset, ETC, can be bought and sold for United States dollars (USD). This price index page shows an ETC to USD live price, the ETC marketcap and more. Is it worth it to invest in Ethereum Classic (ETC)? Each potential buyer must decide for themself based on their own research and situation.
