History of Ethereum Classic and Ethereum
Hello Everyone,
Hope you are doing well. Today we are going to discuss about the second largest cryptocurrency Ethereum(ETH) and Ethereum classic(ETC) which comes under top 15 on coin market cap. Let us have a look at current statistics of both on coin market cap:
Ethereum
Ethereum Classis
So if you look at the price, there is huge difference. ETH is dominating ETC in terms of price,volume and market cap. But ETC has limited supply of coins whereas ETH has unlimited supply. Both the coins are mineable.
Many of you may know that ETH was a fork of ETC. But still let me explain you how this happened. This split was a result of DAO attack in June 2016. DAO stands for Decentralized Autonomous Organization. The DAO project was launched on 30th April 2016. DAO was having a group of developers who were writing the smart contracts in order to run the organization. Founders of ethereum understood that to run the organization, they need huge amount of money. So they decided to collect money from big and small investors. After the launch of DAO, a 28 days window was opened for crowd funding. People started investing money in DAO project and they in turn got ethereum tokens.
When the crowdfunding was over, the organization had collected over $160,000,000 which they never expected. That was the largest crowd funding ever. As soon the crowd sale was over, DAO began to operate and coders started to write the smart contract. The initial investors were given the rights to propose the ways of how the money can be spent. There were voting lines opened and company received huge amount of proposals. In between, the smart contracts which were written by coders has got some loopholes. Hackers came to know about these loopholes and they managed to steal $60,000,000 worth of ether tokens. This was biggest lost to the company.
So the major cause of hack was code which was full of bugs. So few developers decided to create a new chain which will have more secure code and some developers decided to stick to the original chain. This debate ended into split of the blockchain into two as per the consensus. The new chain was named as Ethereum and the original chain is known as Ethereum classic. This is how ETC and ETH came into existence.
Source of information:
- https://www.coindesk.com/understanding-dao-hack-journalists/
- https://www.coindesk.com/dao-attacked-code-issue-leads-60-million-ether-theft/
I hope you like and understand the article. If so please do upvote, follow me on steemit and comment down below your views.
Best Regards,
@lets-steemit
Please check out my latest posts.
- https://steemit.com/mgsc/@lets-steemit/ripple-and-xrp-are-different-entities-and-not-one-and-the-same
- https://steemit.com/mgsc/@lets-steemit/these-indian-exchanges-are-still-providing-inr-deposit-and-withdrawal-services
- https://steemit.com/mgsc/@lets-steemit/electroneum-mobile-miner-is-coming-for-ios-users-also
- https://steemit.com/mgsc/@lets-steemit/these-cryptocurrencies-are-more-costly-than-bitcoin
- https://steemit.com/mgsc/@lets-steemit/be-aware-of-these-fake-giveaways
