Ethereum Classic

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Ethereum Classic
The Ethereum Classic logo
The Ethereum Classic logo
Initial release 30 July 2015
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Development status Active
Written in C++, Go, Rust, Scala
Operating system Clients available for Linux, Windows, macOS, POSIX
Platform x86, ARM
Type Decentralized computing
License Multiple open-source licenses

Ethereum Classic is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality.[1][2] It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum Classic also provides a value token called "classic ether", which can be transferred between participants, stored in a cryptocurrency wallet and is used to compensate participant nodes for computations performed. The classic ether token is traded on cryptocurrency exchanges under the ticker symbol ETC. Gas, an internal transaction pricing mechanism, is used to prevent spam on the network and allocate resources proportionally to the incentive offered by the request.[3][4][5][6]

The Ethereum platform has been forked into two versions: "Ethereum Classic" (ETC) and "Ethereum" (ETH). Prior to the fork, the token had been called Ethereum. After the fork, the new tokens kept the name Ethereum (ETH), and the old tokens were renamed Ethereum Classic (ETC). Ethereum Classic appeared as a result of disagreement with the Ethereum Foundation regarding The DAO Hard Fork. It united members of the Ethereum community who rejected the hard fork on philosophical grounds. Users that owned ETH before the DAO hard fork (block 1920000[7]) own an equal amount of ETC after the fork.

Ethereum Classic passed a technical hard fork to adjust the internal prices for various opcodes of the Ethereum Virtual Machine (EVM) on October 25, 2016, similar to the hard fork committed by Ethereum a week previously. The purpose of the hard fork was a more rational distribution of payments for resource-intensive calculations, which led to the elimination of the favorable conditions for attacks that were previously conducted on ETH and ETC. A hard fork held in the beginning of 2017 successfully delayed the "bomb complexity" that was added to the Ethereum code in September 2015 with a view of exponentially increasing the complexity of mining and the process of calculation of new network units. In late 2017, a hard fork occurred which changed the monetary policy with unlimited emissions to a system similar to Bitcoin.

History[edit | edit source]

In May 2016, a venture capital fund called The DAO built on Ethereum raised around $168 million, with the intention of investing in projects using smart contracts.[8] In the same month a paper was released detailing security vulnerabilities with The DAO that could allow ether to be stolen.[9] In June, 3.6 million Ether (approximately $50 million USD) was taken from accounts in The DAO and moved to another account without the owners' consent, exploiting one of the vulnerabilities that had been raised in May. Members of The DAO and the Ethereum community debated what actions, if any, should occur to resolve the situation. A vote occurred and in July 2016 it was decided to implement a hard fork in the Ethereum code and to move the Ether taken in the exploit to a new smart contract through which it would be restored to the owners from whom it had been taken.[10]

Ethereum Classic came into existence when some members of the Ethereum community rejected the hard fork on the grounds of "immutability", the principle that the blockchain cannot be changed, and decided to keep using the unforked version of Ethereum.[11]

Ethereum Classic underwent a technical hard fork to adjust the internal pricing for running various op codes on the Ethereum Virtual Machine (EVM) on 25 October 2016, similar to the hard fork the ETH chain did a week earlier. The goal was to more rationally price various compute-intensive and external reference commands to reduce the incentive for spammers who had conducted a month-long distributed denial-of-service attack on the Ethereum Classic network.[12] A hard fork that occurred early 2017 successfully delayed the so-called "difficulty bomb", originally added to Ethereum's code in September 2015 in order to exponentially increase the difficulty of mining, or the competitive process by which new transaction blocks are added to the network.[13][14][15] The people who continued with Ethereum Classic advocate for blockchain immutability, and the concept that "code is law" [16] against the pro-fork side (Ethereum) which largely argued for extra-protocol intentionality, decentralized decision-making, and conflict resolution.[17][18][19][20] Various critics of Ethereum Classic have denounced it as a scam[21][22] and a potential theft of intellectual property,[23] with similar controversial remarks being made on behalf of the opposing camp. Ethereum Classic has retained some users of Ethereum and has also attracted others from the wider crypto-community who reject contentious forks on ideological grounds. The project, however, is not officially supported by the Ethereum Foundation.[24]

On June 29, 2017 the Ethereum Classic Twitter account made a public statement indicating reason to believe that the Classic Ether Wallet Website had been compromised. [25] Information security news organization Threatpost later reported that the compromise occurred due to a social engineering attack against the CEW websites domain registrar 1&1.[26] The Ethereum Classic Twitter account confirmed the details released via Threatpost. [27] The Ethereum Classic team worked with CloudFlare, a company specializing in internet security services, to place a warning on the compromised domain warning users of the phishing attack. [28][29] The domain is now only a redirect to the Github Page Site of the wallet.[30]

Milestones[edit | edit source]

Release Date Code name Milestones & Hard Forks
July 30, 2015 Frontier The release of the Ethereum Genesis block.[31]
March 14, 2016 Homestead The 2nd major release of the Ethereum platform, which introduced EIP-2, EIP-7, and EIP-8.[32]
October 25, 2016 GasReprice First fork after being renamed "Ethereum Classic". Repriced some operations to prevent DoS attacks affecting both Ethereum and Ethereum Classic networks. Introduced ECIP-1050.[33]
January 14, 2017 Die Hard Delayed the difficulty bomb which was originally intended to force the network to move from proof-of-work to proof-of-stake and added replay protection to prevent transactions on the Ethereum network being accepted on the Ethereum Classic chain. Introduced ECIP-1010 and EIP-155.[34]
December 11, 2017[35] Monetary policy change Change unlimited token emission to a fixed-cap monetary policy similar to bitcoin with a hard cap of around 210 Million.[36]

References[edit | edit source]

  1. Ehsani, Farzam (22 December 2016). "Blockchain in Finance: From Buzzword to Watchword in 2016". CoinDesk (News). Retrieved 22 December 2016. 
  2. Vigna, Paul (28 October 2015). "BitBeat: Microsoft to Offer Ethereum-Based Services on Azure". The Wall Street Journal (Blog). News Corp. Retrieved 17 February 2016. 
  3. "Account Types, Gas, and Transactions — Ethereum Homestead 0.1 documentation". Retrieved 2017-01-15. 
  4. Ethereum. "Gas and transaction costs | Ethereum Frontier Guide". Retrieved 2017-01-15. 
  5. "What is the "Gas" in Ethereum?". CryptoCompare. Retrieved 2017-01-15. 
  6. ConsenSys (2016-06-23). "Ethereum, Gas, Fuel, & Fees". ConsenSys Media. Retrieved 2017-01-15. 
  7. Buterin (2016-07-20). "Hard Fork Completed". Ethereum foundation blog. Retrieved 2017-10-10. 
  8. "The Biggest Crowdfunding Project Ever Was Supposed to Create Manager-free Companies. But It's a Mess". WIRED. Retrieved 2017-07-12. 
  9. Popper, Nathaniel (2016-05-27). "Paper Points Up Flaws in Venture Fund Based on Virtual Money". The New York Times. ISSN 0362-4331. Retrieved 2017-07-12. 
  10. "The DAO, The Hack, The Soft Fork and The Hard Fork". CryptoCompare. Retrieved 2017-07-12. 
  11. Wirdum, Aaron van. "Rejecting Today's Hard Fork, the Ethereum Classic Project Continues on the Original Chain: Here's Why". Bitcoin Magazine. Retrieved 2017-04-27. 
  12. "Ethereum Classic Hardforks Successfully - CryptoCoinsNews". 25 October 2016. 
  13. "Ethereum Classic Hard Forks; Diffuses 'Difficulty Bomb'". 2017-01-13. Retrieved 2017-04-27. 
  14. Vigna, Paul (1 August 2016). "The Great Digital-Currency Debate: 'New' Ethereum Vs. Ethereum 'Classic'". Down Jones & Company Inc. Retrieved 15 May 2017. 
  15. Bovaird, Charles (21 August 2016). "Can Two Ethereum Markets Co-Exist?". CoinDesk. Retrieved 15 May 2017. 
  16. Pearson, Jordan (27 July 2016). "The Ethereum Hard Fork Spawned a Shaky Rebellion". Motherboard. Retrieved 15 May 2017. 
  17. Ethereum info (4 June 2011). "Ethereum (ETH) kopen, verkopen en koersen". (in Dutch). Retrieved 8 March 2018. 
  18. De Filippi, Primavera (11 July 2016). "A $50M Hack Tests the Values of Communities Run by Code". Motherboard. Retrieved 15 May 2017. 
  19. Mougayar, William (21 June 2016). "What We Can Learn From The DAO". CoinDesk. Retrieved 15 May 2017. 
  20. Eliosoff, Jacob (17 August 2016). "Why Ethereum Classic Must Die". CoinDesk. Retrieved 15 May 2017. 
  21. Seaman, David. ""Ethereum Classic," Another Bitcoin Scam". Huffington Post. 
  22. "BTC-e calls Ethereum Classic 'scam'". Coinfox. 
  23. Berns, Jeffrey. "Should the Ethereum Foundation Take IP Action Against Ethereum Classic?". BernsWeiss LLP. 
  24. Young, Joseph. "Vitalik Buterin Won't Support ETC If It Takes Over ETH". CoinTelegraph. 
  25. Classic, Ethereum (2017-06-29). "*Warning* We have reason to believe  has been hijacked. Do not use!!". @eth_classic. Retrieved 2017-07-10. 
  26. "ClassicEtherWallet Compromised via Social Engineering". Threatpost | The first stop for security news. 2017-07-03. Retrieved 2017-07-10. 
  27. Classic, Ethereum (2017-06-29). "A hacker called domain registry and impersonated the owner of ClassicEtherWallet to hijack the site. Please use". @eth_classic. Retrieved 2017-07-10.  External link in |title= (help)
  28. "Classic Ether Wallet Falls Victim to a Social Engineering Hacker - CryptoCoinsNews". CryptoCoinsNews. 2017-07-01. Retrieved 2017-07-10. 
  29. "Cloudflare". Wikipedia. 2017-07-06. 
  30. "". 
  31. "Ethereum Launches". Ethereum Blog. 2015-07-30. Retrieved 2017-05-10. 
  32. "Homestead Release". Ethereum Blog. 2016-02-29. Retrieved 2017-05-10. 
  33. "Gas Reprice Hard Fork on ETC block 2500000 (October 25) | Ethereum Classic". Retrieved 2017-05-10. 
  34. "ETC Weekly Newsletter : Protocol Update Successful! | Ethereum Classic". Retrieved 2017-05-10. 
  35. "ECIP 1017". 
  36. "Ethereum Classic Forges New Path; Revamped Monetary Policy Could Be Next". 2016-12-13. Retrieved 2017-04-27. 

External links[edit | edit source]