{"id":109,"date":"2021-09-02T09:19:38","date_gmt":"2021-09-02T09:19:38","guid":{"rendered":"https:\/\/etcwallet.net\/articles\/?p=109"},"modified":"2022-01-27T14:29:48","modified_gmt":"2022-01-27T14:29:48","slug":"etc-cryptocurrency-how-came","status":"publish","type":"post","link":"https:\/\/ethereumclassicwallet.com\/articles\/etc-cryptocurrency-how-came","title":{"rendered":"ETC cryptocurrency: how the Ethereum Classic project came to be"},"content":{"rendered":"

The history of ETC cryptocurrency until the summer of 2016 is equal to the development path of the project, which today is known to the cryptocurrency community as<\/b> Ethereum<\/a>. The emergence of the “classic” version is due to the dramatic situation faced by the startup team one year after the cryptocurrency’s release.<\/p>\n

What happened is closely related to an initiative called The DAO. The latter was an investment fund aimed at financing promising projects. The organization was seen as a center for the accumulation of investor funds.<\/p>\n

\"DAO
The structure of The DAO<\/figcaption><\/figure>\n

On June 17, 2016, a group of hackers discovered a vulnerability that helped them gain access to The DAO’s funds (about $50 million)<\/b>. Technically, the incident could have been solved, by conducting a hardfork<\/a> (since the hackers could not gain full access to the investment until 28 days later).\u00a0 However, at this point, an ethical dilemma arose for members of the cryptocurrency community.<\/p>\n

The fact is that during the creation of Ethereum, the developers and users interested in the development of the project were guided by the principle “the code is the law”. What is law cannot be changed. A hard fork means making adjustments. Accordingly, in terms of the original idea of the project, such changes are impossible.<\/p>\n

However, if the hard fork was rejected, Ethereum could lose The DAO funds, which were accessed by attackers. Due to the discovered circumstances, the participants of the crypto-community were faced with the question of choosing the further development path of the project. The latter contained two options:<\/p>\n

    \n
  1. Leave the code unchanged, guided by the principles. In this case, the funds would have finally fallen into the hands of attackers. As a way to fix the security problems, the developers were suggested to make minor corrections to the code.<\/li>\n
  2. Perform a hard fork and continue to exist on a new, updated, better version of Ethereum. The bug that led to the theft of funds by attackers would have been fixed. The DAO’s assets would have been returned.<\/li>\n<\/ol>\n

    Gavin Wood, one of the Ethereum developers, on the attack on The DAO:<\/p>\n

    https:\/\/youtu.be\/JzCGRtGyxvY<\/p>\n

    Representatives of the project were unable to reach a unanimous decision. Some users insisted on protecting the code from changes, while others leaned toward improving quality through the crime of principles.<\/p>\n

    As a result of the controversy, the Ethereum cryptocurrency community split into two camps at the end of July 2016:<\/b><\/p>\n

      \n
    1. Users who did not want to change the code continued to work with the cryptocurrency in its original form. The name of the project was changed from Ethereum to Ethereum Classic (the classic version of the asset).<\/li>\n<\/ol>\n

      The second birthday of the cryptocurrency is July 20, 2016. It was on this day that the project community published a declaration of independence. The document states the intention of users to continue working on the classic version of Ethereum, which from now on should be recognized as a separate project.<\/p>\n

        \n
      1. Members of the crypto community, who did not agree to put up with the imperfections of the code, supported the hard fork. The latter resulted in the emergence of the Ethereum cryptocurrency. The asset became “mainstream” because the majority of the project’s users voted for it.<\/b><\/li>\n<\/ol>\n

        It turns out that Ethereum Classic is the true cryptocurrency launched by Vitalik Buterin and his team in 2015, and the project known today as Ethereum is only a fork of the “classic” version of the asset.<\/p>\n

        The ETH ticker has been assigned to Ethereum. ETC cryptocurrency continued under a new ticker.<\/p>\n

        \"ETH
        Comparison of cryptocurrency logos: Ethereum and Ethereum Classic<\/figcaption><\/figure>\n

        At the time of the project split, Ethereum Classic needed support from miners and major exchanges. Cryptocurrency mining was needed to stabilize the price, while listing on trading platforms was needed to maintain demand and status.<\/p>\n

        Poloniex, a digital asset exchange, played an important role in the future fate of the “classic” version of the asset. Thanks to Poloniex specialists, ETC cryptocurrency was listed on a major trading platform in the shortest possible time.<\/p>\n

        \"ETC
        Behavior of the rate of Ethereum Classic (formerly just Ethereum) during the bifurcation of the project. Data: CoinMarketCap<\/figcaption><\/figure>\n

        At the end of 2018, the project experienced a crisis due to the refusal of the current development team (ETCDEV) from further work on the cryptocurrency. The reason was funding problems.<\/p>\n

        Despite the difficulties and the refusal of the developer funding from the members of the cryptocommunity, the project continued to exist at the expense of programmers working on a voluntary basis.<\/p>\n

        \"The
        The result of the survey, which specifies the interest of participants of the project community to fund the activities of the developers<\/figcaption><\/figure>\n

        Ethereum Classic vs Ethereum<\/h2>\n

        Ethereum Classic today is significantly inferior to Ethereum in popularity and demand on the market. The situation can be explained as follows:<\/p>\n