Ethereum Classic is the original Ethereum blockchain and allows for the implementation of decentralized applications and smart contracts. The project was born out of an unwavering belief in core principles. It symbolizes the importance of a cryptocurrency being fungible and its blockchain immutable.
The history of Ethereum Classic
When Ethereum was founded, it started as this version. On may 2016, the DAO was built on Ethereum. The DAO was a VC fund that raised over $168 million with the intention of investing in projects with smart contracts.
The Ethereum and Ethereum Classic blockchains were identical all the way up to block 1920000. But then the infamous DAO changed a blockchain and cryptocurrency forever.
In June, 3.6 million Ether was taken from various accounts in the DAO. This exploit of the DAOs volunarabilties lead to a question of what to do, with 3.6 million Ether gone and stolen, this was a turning point in Ethereum.
Later in June 2016, a vote was conducted. It resulted in a hard fork to restore the funds to their rightful owners.
Although, some members of the ETC community rejected this hard fork resulting in a split of Ethereum. Now there was ETC, which relied on the old blockchain, and ETH which resulted after the fork.
In October of 2016 Ethereum Classic did a hard fork to adjust internal pricing for running various opcodes on the EVM. And then they delayed the additional “difficulty bomb” that was supposed to take place in Ethereum in 2017.
The project currently is not officially supported by the Ethereum Foundation.
ETC diverges greatly from ETH when it comes to mining and coin supply. Ethereum has a built-in difficulty bomb that makes mining with proof of work harder over time. This will eventually force all miners to switch to proof of stake. ETC will pause this difficulty bomb and intends on sticking with proof of work.
On average there are 10-14 second block times with a reward of 5 ETC per block. As the block times are so short, transaction fees are relatively low, with an average fee of about 1 cent.
Ethereum Classic is inflationary through block rewards until the year 2025 at which point the coin supply will be capped at 210 million coins. Ethereum has no cap and plans to remain inflationary for the time being. ETC believes this monetary policy makes Classic a safer investment as the value of the coins will not decrease over time due to a neverending increase in supply.
Features of Ethereum Classic
On the ETC blockchain, valid transactions can never be erased or forgotten.
This means that people on the Ethereum classic blockchain have the governance code. And as they state “code is law.”
This gives the user the ability to enter into a new jurisdiction where agreements are governed by code.
Because it is voluntary to act with the code, the code is neutral, and it will execute anything that is set as long as a user activates that smart contract.
With centralized governance, the central entity controls the total governance.
This can lead to corruption, power disputes, and much more.
Now this section falls along with ETH, but it is one of the main points of the ETC blockchain.
By decentralizing and making code execute based on nodes that are continually going on around the world they can decentralize the system.
ETHEREUM CLASSIC VS ETHEREUM
Now, on the other hand, a huge point of contention is normally ETH vs. ETC.
Ethereum Classic does not have the backward compatibility of Ethereum. This means that any new updates and features that are added to the Ethereum ecosystem are not implemented to ETC.
Thus it can lead to a dispute in advancement and progress. For something like the new Proof-of-stake system being added to ETH, it will not be implemented to ETC. along with many of the other updates like sharding, the Raiden network and much more.
All in all, Ethereum Classic resembles the Ethereum that was created before the hard fork and DAO attack.
Ethereum Classic Team
The Ethereum Classic team intentionally holds a lower profile. The lack of high profile leader is in line with their core philosophy of ETC being decentralized and free from powerful human influence.
However, the majority of this team has over 10 years of experience in software engineering and “understand how to build a system supposed to work for years.”
Their “main focus is on making Ethereum Classic a stable and usable technology. Opposite to move fast and break things.”
How To Claim Your Callisto ($CLO) From The Ethereum Classic Hard Fork
The Ethereum Classic hard fork is planned to take place on the 5th March, 2018 where a new token Callisto (CLO) will be launched. At the time of the launch, all accounts storing ETC at the time of block 5500000 will receive CLO in the ratio of 1:1. That is, if you have 1 ETC in your wallet, you will receive 1 CLO.
As it relates to blockchain technology, a hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions valid (or vice-versa), and as such requires all nodes or users to upgrade to the latest version of the protocol software.
A hard fork can be implemented to correct important security risks found in older versions of the software, to add new functionality, or to reverse transactions
In simple terms; a hard fork is when a cryptocurrency splits in two, keeping its base cryptocurrency and creating a new cryptocurrency. For example, Bitcoin Cash was as a result of Bitcoin hard fork. Bitcoin was split in two keeping its base coin (Bitcoin) and creating another coin (Bitcoin Cash)
Callisto is a decentralized open source crypto platform based on go-Ethereum
source code with its own cryptocurrency CLO.
The main goal of Callisto is to research and develop a reference
implementation of self-sustaining, self-governed, self-funded blockchain ecosystem
and development environment. Callisto aims to establish a secure and
contribution-friendly environment for further protocol development and
improvements. It will rely on built-in system of smart-contracts to achieve this goal.
One of the main problems of Ethereum smart contracts is the lack of tools to
make them secure. Smart-contract hacking results in millions of dollars loss for the
whole ecosystem. Callisto is intended to solve this problem for CLO and ETC
ecosystems with “Official Smart-contract Auditing Department of CLO & ETC”. This
represents a completely free opportunity of professional smart-contract auditing for
Callisto primary goal is to boost the growth and the adoption of Ethereum Classic as
a community and as a platform.
Such as important goals for us we have:
- Research, define and develop reference implementation of cold staking
protocol, built-in governance system and self-funding mechanism.
- Improve the security level of the whole Ethereum Classic and Callisto
ecosystem with official auditing team and secure contracts registry.
- Research experimental possibilities of scaling and cross-chain interaction
These wallets are guaranteed to receive CLO if it contains ETC:
- ClassicEtherWallet: see how to setup ClassicEtherWallet here
- ClassicMask: setup ClassicMask here
- MyEtherWallet: see how to setup MyEtherWallet here
It is still not known if MyEtherWallet will support Callisto but If they will not add Callisto support then you can just use MyEtherWallet accounts on ClassicEtherWallet – they are compatible.
With ETC, you know you are investing in a commitment to an immutable blockchain. Their team hopes, in the long run, there is value in sticking to your principles. With ETH, there is the precedent that they could hard fork again based on human influence. It is important to remember cryptocurrencies arose out of the ashes of the banking collapse. Cryptocurrency thefts have happened before and will happen again. Where do we draw the line of what requires a hard fork? ETH blurred this line while ETC has clearly drawn their land in the sand.
CryptoMeNow is on a mission to make cryptocurrency easy for everyone to understand.
Our core product is our free daily newsletter where we send you need to know information about cryptocurrency that everyone can understand in less than 3 minutes a day.
Please subscribe to our newsletter and share it with your friends! You can subscribe directly at CryptoMeNow
You can also follow me on Twitter @itswilson8