There has bot a titanic explosion of fresh investors, and thus fresh money, into the cryptocurrency space overheen the past few days alone. The fact that the bitcoin price just surged up to $Nineteen,000 USD for a split uur before a reasonable retrace back to
$16,000 just goes to display that the FOMO (“fear of missing out”) is on.
And what’s the very first thing fresh investors do ter the space after buying BTC? Well, they look around at the other interesting cryptocurrencies that are available.
And since Ethereum (ETH) is presently the second-most superior crypto project vanaf market capitalization after Bitcoin, it’s the most common refuge for fresh migrants to the ecosystem looking for an interesting chance to learn more about.
A common difficulty for newcomers to Ethereum, tho’? Making out the difference inbetween Ethereum and Ethereum Classic.
And to be sure, that’s a valid confusion, to have for novices ter the space. So to get you up to speed on ETH vs. ETC and on the way the split played out, wij’ve got a quick crypto history lesson for you.
The Birth of Ethereum
Vanaf Wikipedia’s excellent description, Ethereum is an “open-source, public, blockchain-based distributed computing podium featuring wise contract (scripting) functionality.”
After a prodigious team consolidated around Ethereum creator Vitalik Buterin, the ETH blockchain wasgoed very first launched ter 2015.
Ethereum, or the Ethereum Virtual Machine, wasgoed built spil a decentralized pc network atop which software developers could program any verhoging or dapp (decentralized app). This network is fueled by ether, or ETH spil traders commonly call the current number two cryptocurrency. Ter this sense, ether is very much akin to “programmable money.”
And ETH, then, is a bit like the “digital oil” to Bitcoin’s “digital gold,” spil ether is the fuel that powers the Ethereum network’s awesome brainy contract capabilities.
The genesis of the project went off remarkably well. What came next … not so much.
The Birth of the DAO
“DAO” stands for decentralized autonomous organization. Ethereum makes DAOs possible ter general (think of them like self-governing communities that have agreed upon principles), but the DAO that wasgoed at the heart of Ethereum’s earliest catastrophe has become a bit of a zindelijk noun.
Indeed, now people simply refer to the incident spil “The DAO Hack.” And while DAOs will go on to provide astonishingly beneficial services to humanity, this early DAO wasgoed the cause of much heartbreak ter the still maturing crypto space.
Here’s how it all embarked.
A DAO wasgoed formed by investors ter the community spil a sort of decentralized investment fund. People from the community could pitch their ETH into said DAO’s wise contract, and thesis funds would be held and used securely for projects of rente to the stakeholders involved.
The fund grew ter popularity, and users contributed te droves embarking te Spring 2016. Before the hack went down, 11,000 users had joined ter on the DAO, and their collective fund wasgoed worth overheen $150 million USD at its peak.
And then it happened.
Inwards The DAO Hack: An Early Catasrophe
Spil various programming flaws began to be highlighted ter the code of the DAO overheen the summer of 2016, the hacker struck. On June 17th, the as-yet undisclosed hacker exploited the existing flaws and wasgoed able to collect overheen Trio.6 million ETH of the 11.Five million that were te the fund.
Ter “zooming out,” spil it were, the scope of the attack wasgoed truly devastating. The hacker wasgoed able to compromise overheen 14 procent of all the ether that were ter existence at that point te time. Spil the nature of the tragedy drowned te, some wondered if the Ethereum project itself wasgoed compromised and the price plummeted spil a result.
So Vitalik Buterin and the surplus of the Ethereum team got together and instantly went into crisis-mode, attempting to determine what wasgoed the best course forward for everyone.
Hard Fork Deemed Necessary Amid Contentious Debate
The eventual proposed solution? A hard fork.
If you’re not familiar with what a “hard fork” is, just think of it spil a blockchain splitting ter two.
Ter the case of the DAO hard fork, the idea wasgoed to make the attacker’s Ethereum chain worthless and abandoned while the surplus of the community moved to the fresh chain. The perk of this treatment wasgoed that victims of the hack would have the omschrijving amount of ETH (well, technically DAO tokens) returned spil they had originally waterput into the DAO.
The con? The thought of a hard fork when “code is law” wasgoed shocking to some te the community. Accordingly, the faction that disagreed with the fork splintered off and became backers of the old, newly-dubbed “Ethereum Classic” chain.
So let’s pauze it down one more time to be clear.
Vitalik Buterin and the surplus of the community migrated overheen to the fresh, unaffected ETH chain after the DAO hack. The faction that disagreed determined to hunker down on the old chain, which they’ve since titled “Ethereum Classic,” or ETC.
So when you hear people talking about “Ethereum” ter the news and on social media, there’s about a 99 procent chance they’re talking about the fresh and now clearly superior purified chain. Most everyone te the space is truly good about specifying “ETC” if they’re talking about the “classic” chain.
So What About DAOs Themselves
The state of the DAO is … strong.
Naturally, a lotsbestemming has switched inbetween now and the DAO hack. The egregious flaws that were originally exploited were remedied and there’s nothing to worry about presently.
The structure of decentralized autonomous organizations will still undoubtedly end up being revolutionary for human society, and particularly for politics, spil DAOs are the very first stateless structures capable of optimizing human interactions ter explosions of different ways.
Indeed, spil TechCrunch noted last year, DAOs mark “a paradigm shift te the very idea of economic organization.” So, too te political and administrative organization. On this vuurlijn, there’s a superb overeenkomst to be excited about going forward.
The Politics Of The Split Are Still Touchy
The split inbetween Ethereum and Ethereum Classic is still very contentious for many. The issues at play resurfaced during the Parity wallet hack a few weeks ago, except this time the Parity hack involved code flaws ter the Parity wallet itself. Spil murmurs grew about what would toebijten next, the Ethereum Foundation itself wasgoed adamant that a hard fork wasn’t on the table.
Undoubtedly, the Foundation has no desire to be dragged through such a political firestorm again. The ETH vs. ETC hard fork wasgoed zuigeling of like their one “Get Out Of Jail Free” card.
So Will Ethereum Classic Everzwijn Amount To Anything? It’s hard to say right now. Ethereum is a revolutionary technology, and te that sense, Ethereum Classic still has revolutionary capabilities ter extension.
The question at palm is a matter of redundancy. If Ethereum is revolutionary and everyone uses it overheen ETC, will the “classic” chain diegene off altogether overheen time?
Maybe, maybe not. No one knows for sure how it will all play out. ETC may remain alive spil a novelty or gimmick te the years to come, but it would take nothing brief of a miracle for it to everzwijn top ETH. It’s so improbable that you can fairly say at this point: not going to toebijten.
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- Posted ter: Guides, History
- Tagged ter: DAO Hack, ETC, Eth, ethereum, Ethereum Classic, Ethereum vs. Ethereum Classic
Posted by William M. Peaster
William M. Peaster is a cryptocurrency reporter and copy-editor based out of El Paso, Texas. He’s an avid fan of Ethereum, ERC-20 tokens, and clever contracts te general.
All content on Blockonomi.com is provided solely for informational purposes, and is not an offerande to buy or sell or a solicitation of an opoffering to buy or sell any security, product, service or investment. The opinions voiced ter this Webpagina do not constitute investment advice and independent financial advice should be sought where suitable.
Once you’ve violated a sacred rule the skill that it can be counted on the next time a hack or hiccup happens it’s just to hard to fight back the 2nd time. Loser mij once shame on you loser mij twice shame on mij. Ter this fresh world trust is everything. Do I think Ethereum will go away of course not, but I do believe that the honesty people are striving for will make Ethereum Classic just spil strong even surpassing Ethereum the next hack or even rumor of a hack challenges the community who waterput so much ter them that wij will end up with two very close competitive currencies te which only will sustain. I honestly believe both will be around a long time, but not spil a gimmick. Good luck to us both.