Ethereum Classic is a distributed, open-source, decentralized, blockchain-based crypto-currency using smart contracts. Its network preserves the original features of Ethereum (see our article, what is Ether?
) and allows developers to create new crypto-currency tokens and decentralized applications (dApps).
ETC was born in 2016 as the immutability of the network was challenged following the hack of a decentralized platform based on Ethereum. Disagreements arose between miners and developers who decided to modify the Ethereum blockchain so that malicious transactions could be undone. Eventually, this conflict leads to a "hard fork", i.e. the creation of an alternative version of Ethereum that allows the cancellation of such transactions. Ethereum Classic is the version of the network that refused this update. The network is still maintained today by a group of miners and developers who remain true to the original Ethereum philosophy.Despite this difference, Ethereum and Ethereum Classic operate in a similar way.On September 15, 2022, Ethereum finally abandons the "proof-of-work" transaction verification mechanism and adopts the "proof-of-stake" one. Ethereum Classic, on the other hand, retains the "proof-of-work" transaction verification mechanism.