About Ethereum Classic (ETC)

Ethereum Classic Frequently Asked Questions (FAQ)

What is Ethereum Classic (ETC) and how does it function?


Ethereum Classic (ETC) is a decentralized blockchain platform that supports smart contracts and enables a value token called 'classic ether'. It originated from a split of the original Ethereum blockchain in 2016, becoming a separate network following the DAO hack controversy. ETC functions similarly to Ethereum, using a proof-of-work consensus mechanism for security and transaction validation. Developers can create and deploy decentralized applications (DApps) on the ETC platform, maintaining immutable transaction records and programmable contract terms.




Who are the founders of Ethereum Classic?


Ethereum Classic does not have specific founders like Ethereum does with Vitalik Buterin and others. Instead, it originated from the Ethereum community following a divisive hard fork in 2016. The fork was in response to the DAO hack, leading to the split where the original blockchain was maintained by a group that opposed the fork, naming it Ethereum Classic.




What was the reason behind the creation of Ethereum Classic?


Ethereum Classic was created as a result of a split in the Ethereum community after a hack on the Decentralized Autonomous Organization (DAO) in 2016. When the Ethereum network performed a hard fork to reverse the DAO theft, a portion of the community chose to maintain the original blockchain, prioritizing the principle of immutability. Thus, Ethereum Classic was created to preserve the original Ethereum code and blockchain without the changes implemented by the hard fork.




What makes Ethereum Classic unique from other cryptocurrencies?


Ethereum Classic (ETC) is unique due to its origin as a continuation of the original Ethereum blockchain, following a split after the DAO hack. It maintains the principle of 'code is law', emphasizing immutability and no interference with transactions or contracts. This sets it apart with its strict adherence to these philosophical tenets, unlike many other cryptocurrencies that have demonstrated a willingness to introduce changes or reverse transactions in response to critical events.




How does Ethereum Classic's development process work?


Ethereum Classic's development process is community-driven, involving decentralized collaboration among various participants including developers, miners, and investors. Proposals for protocol changes are made through Ethereum Classic Improvement Proposals (ECIPs), which are thoroughly discussed, vetted, and tested before implementation. Final decisions on EIPs are achieved through a consensus among stakeholders within the Ethereum Classic ecosystem.




What are the key differences between Ethereum Classic and Ethereum?


The key differences between Ethereum Classic (ETC) and Ethereum (ETH) stem from their history and development path. Ethereum Classic is the original Ethereum blockchain that follows the original network rules prior to the DAO hack in 2016. After the hack, the Ethereum community split, with the majority supporting a hard fork to reverse the hack's transactions, resulting in the Ethereum we know today (ETH), while the minority continued on the original chain, known as Ethereum Classic. Key differences include their consensus mechanisms, with Ethereum transitioning to Proof of Stake (PoS) while Ethereum Classic remains on Proof of Work (PoW). Ethereum has also seen more updates and protocol enhancements, like the introduction of Ethereum 2.0, whereas Ethereum Classic maintains the original Ethereum code and focuses on principles of immutability and ideological purity regarding blockchain transactions.




What is the total supply of Ethereum Classic (ETC) coins, and is it capped?


The total supply of ETC is subject to a fixed monetary policy with the intention of being capped at approximately 210.7 million ETC. This number is subject to change through future community consensus, but as of 2023, the hard cap serves as the maximum amount of ETC to ever be created.




What security measures does Ethereum Classic (ETC) use?


Ethereum Classic (ETC) uses Proof of Work (PoW) for consensus, relying on miners to validate and secure transactions. It employs cryptographic hash functions for creating secure and immutable blocks. ETC also follows standard security practices like peer review of code and network monitoring to protect against malicious activities.




How does the Proof-of-Work (PoW) consensus algorithm secure Ethereum Classic?


The Proof-of-Work (PoW) consensus algorithm secures Ethereum Classic by requiring network participants, called miners, to solve complex mathematical problems to validate transactions and create new blocks. This computational work makes it costly and time-consuming to attempt malicious actions, such as double spending or attempting blockchain reorganizations. The cumulative work of honest miners makes the blockchain more secure, as the cost and computational power required to alter past transactions would be extremely high, thus deterring potential attackers.




How can someone mine Ethereum Classic (ETC), and what are the rewards?


To mine Ethereum Classic (ETC), you need to set up mining hardware (GPUs or ASICs), choose a mining software compatible with the Ethash algorithm, then join a mining pool to increase your chances of earning rewards. Configure your software to connect to the pool and the Ethereum Classic network. Rewards come from two sources: block rewards and transaction fees from the blocks mined by the participant.




What challenges does Ethereum Classic face regarding network scalability?


Ethereum Classic faces challenges similar to those encountered by other blockchain networks attempting to scale. These include limited transaction throughput due to block size and block time, leading to potential network congestion. Additionally, scaling solutions like sharding or layer 2 protocols are less developed compared to Ethereum, which may hinder the ability to handle increased load efficiently. Network security and decentralization must also be balanced with scalability efforts to maintain the integrity of the blockchain.




How did Ethereum Classic respond to the 51% attacks experienced by the network?


Ethereum Classic responded to the 51% attacks by implementing a series of network upgrades and security measures to enhance the blockchain's resilience against such attacks. Measures included enhanced network monitoring, cooperation with mining pools to secure the network, and the adoption of a modified mining algorithm, such as the MESS (Modified Exponential Subjective Scoring) solution designed to reduce the likelihood and impact of these attacks.