What is Ethereum Classic?
Ethereum Classic is a decentralized blockchain platform that runs smart contracts. It is a fork of the original Ethereum blockchain that was created in 2016 after a hack that resulted in the loss of millions of dollars worth of Ether. Ethereum Classic operates on a proof-of-work consensus algorithm, which means that miners must solve complex mathematical problems to validate transactions and add new blocks to the blockchain.
The Recent 51% Attack
On August 1st, 2020, Ethereum Classic suffered a 51% attack, resulting in the reorganization of more than 4,000 blocks on the blockchain. This attack allowed the attacker to double-spend more than 800,000 ETC, resulting in the loss of millions of dollars for cryptocurrency exchanges and investors. The attack also highlighted the vulnerability of proof-of-work blockchains to 51% attacks, where a single entity controls more than half of the network’s computing power.
The aftermath of the attack
After the attack, several cryptocurrency exchanges, including Binance and OKEx, suspended ETC deposits and withdrawals. Ethereum Classic developers implemented a network upgrade to increase the block confirmation time and reduce the risk of future attacks. The upgrade also introduced a new mining algorithm, known as ECIP-1099, which aims to make the network more resistant to 51% attacks.
Ethereum Classic vs. Ethereum
Ethereum Classic and Ethereum are both decentralized blockchain platforms that run smart contracts. However, they have fundamental differences in their ideologies and approaches to governance. Ethereum Classic’s philosophy is rooted in the principles of decentralization and immutability, while Ethereum’s approach is more focused on scalability and innovation.
The DAO Hack
One of the most significant differences between Ethereum Classic and Ethereum is their response to the DAO hack. In 2016, a hacker exploited a vulnerability in the DAO smart contract, resulting in the theft of more than $50 million worth of Ether. Ethereum developers decided to implement a hard fork to reverse the hack, which resulted in the creation of Ethereum (ETH) and Ethereum Classic (ETC).
Ethereum Classic developers, on the other hand, decided to maintain the original blockchain and adhere to the principles of immutability and decentralization. This decision was met with criticism from some members of the cryptocurrency community, who argued that the hard fork was necessary to restore trust in the Ethereum network.
The Future of Ethereum Classic
Despite the recent 51% attack and the ongoing debate about its philosophy, Ethereum Classic continues to attract developers and investors who believe in its vision of a truly decentralized blockchain. The network is currently undergoing significant upgrades, including the implementation of ECIP-1099, which aims to make the network more resistant to 51% attacks.
In July 2021, Ethereum Classic developers announced the launch of the Emerald Wallet, a feature-rich wallet that supports ETC and ERC-20 tokens. The wallet also includes a decentralized exchange (DEX) and a messaging platform, making it a one-stop-shop for all things Ethereum Classic.
Ethereum Classic developers are also working on several other projects, including the Emerald SDK, a software development kit that allows developers to build decentralized applications (dApps) on the Ethereum Classic blockchain, and the Emerald Vault, a secure storage solution for cryptocurrencies.
FAQs – Ethereum Classic Latest News
What is Ethereum Classic?
Ethereum Classic is a decentralized blockchain platform that is based on its original Ethereum blockchain design principles. It is an open-source, public, and decentralized platform that uses smart contracts and runs on a proof-of-work consensus algorithm. Ethereum Classic is one of the most popular cryptocurrencies and is traded in various crypto exchanges.
What is the latest news on Ethereum Classic?
The latest news on Ethereum Classic is the implementation of the Magneto hard fork on block 13,189,133, which occurred on July 21, 2021. The Magneto upgrade introduced several new features to the network, including the activation of an Ethereum Improvement Proposal (EIP) that allows users to create tokens with the same smart contract standards as the Ethereum network. Additionally, Magneto has reduced the block reward by 20% for miners, which aims to address the issue of the high inflation rate of Ethereum Classic.
What is the purpose of the Magneto hard fork?
The purpose of the Magneto hard fork is to improve the efficiency and performance of the Ethereum Classic network. One of the primary objectives of the upgrade is to reduce the inflation rate of the Ethereum Classic token. The reduction of the block reward by 20% aims to lower the amount of new tokens being minted, which can address the asset’s oversupply and boost its value. Additionally, the activation of the EIP allows Ethereum Classic to be more interoperable with the Ethereum network, enabling users to create tokens with the same standards as Ethereum.
How does Ethereum Classic differ from Ethereum?
Ethereum Classic and Ethereum differ in terms of their blockchain design principles. Ethereum Classic follows the original blockchain design principles of Ethereum that prioritize immutability, decentralization, and censorship resistance. In contrast, Ethereum has introduced several upgrades, including the transition from the proof-of-work consensus algorithm to proof-of-stake, which aims to enhance scalability, energy efficiency, and transaction speeds. Another significant difference is their communities, with Ethereum Classic being considered a more niche community that emphasizes staying true to the original Ethereum vision.
Can I mine Ethereum Classic?
Yes, you can mine Ethereum Classic using a mining rig or specialized mining hardware. Ethereum Classic uses a proof-of-work consensus algorithm, which means that miners need to solve complex mathematical equations to confirm transactions and add new blocks to the blockchain. However, it is essential to note that mining Ethereum Classic is becoming increasingly challenging as the network’s hash rate increases, which can make the reward less profitable.