Ethereum Classic Vs. Ethereum
If you’re into Web3, you probably already know what Ethereum (ETH) is. ETH is the second largest coin by market capitalization right behind Bitcoin (BTC). However, not many people know the history of ETH classic. Here, we will explore how ETH classic differs from the widely used ETH.
In 2013, Ethereum was created by a 19 year old named Vitalik Buterin. He wrote the whitepaper for ETH which served to be the foundation of ETH. In his own words ETH is a “next-generation smart contract and decentralized application platform”
What is a smart contract?
A smart contract is a piece of code that executes a transaction given certain criteria. You can think of it like “if this → then that”. The most common smart contracts are written on the ETH network using the language solidity.
For example, a smart contract can be executed for a content creator. If the creator reaches 1M subscribers by the end of the year, they will receive 20ETH.
Key Concepts — Smart Contracts
- Immutable: Smart contracts are code on the blockchain that are being ran, and once it’s executed on the blockchain it cannot be altered.
- Distributed: Smart contracts by nature, are designed to be executed on the network if certain conditions are met. Therefore, users cannot dispute the transaction. Smart contracts are essentially code designed to remove human error and issues.
Time for a history lesson — Ethereum
In the beginning, there was a group of investor that funded the Ethereum project, which would then return a profit for the investors. This organization was called “The DAO”.
The DAO got hacked! Someone found a bug in the code and anonymously stole $50M worth of ETH. As a solution, Vitalik proposed that the blockchain be rolled back so that it was as if the hack never happened, allowing them to fix the bug in the code as well. This proposal eventually got approved and the blockchain was changed. In July 2016, Ethereum was hard forked into 2 blockchains: ETH and ETH classic.
What are forks?
- Soft forks: Require no action from users to change the network.
- Hard forks: When people in the network must update their software to keep adding blocks
Resource: Link to Ethereum whitepaper here