Introduction
Ethereum Classic (ETC) is a decentralized, open-source blockchain platform that emerged from a hard fork of Ethereum (ETH) in 2016. It maintains the original Ethereum code and philosophy, emphasizing immutability and censorship resistance. ETC operates as a smart contract platform, similar to Ethereum, but follows a different ideological path by rejecting major changes like Ethereum’s transition to Proof of Stake (PoS).
History and the DAO Hard Fork
Ethereum Classic was created after a controversial event in 2016 called The DAO Hack, where an exploit led to the theft of $60 million worth of Ether from an investment fund. To recover the lost funds, Ethereum’s developers implemented a hard fork, essentially rewriting the blockchain’s history.
However, a group of developers and users opposed this decision, arguing that “code is law” and that the blockchain should remain immutable. They continued running the original Ethereum chain, which became Ethereum Classic (ETC), while the forked version became what we now call Ethereum (ETH).
Key Features of Ethereum Classic (ETC)
✅ Smart Contract Execution – Like Ethereum, ETC enables decentralized applications (dApps) and smart contracts.
✅ Proof-of-Work (PoW) Consensus – Unlike Ethereum, which moved to Proof-of-Stake (PoS), ETC remains a Proof-of-Work (PoW) blockchain, making it compatible with traditional mining.
✅ Fixed Supply – ETC has a maximum supply cap of 210 million coins, unlike ETH, which has no hard cap.
✅ Immutability – The community strongly believes in the principle that “code is law”, meaning transactions on Ethereum Classic are irreversible and cannot be altered.
ETC Token Utility
The ETC token powers the Ethereum Classic network and is used for:
🔹 Transaction Fees – ETC is required to pay for transactions and smart contract execution.
🔹 Mining Rewards – Miners secure the network by verifying transactions and are rewarded with ETC tokens.
🔹 Smart Contract Deployment – Developers use ETC to build and deploy decentralized applications (dApps).
🔹 Store of Value – Some investors view ETC as a long-term asset due to its capped supply and strong decentralization.
ETC vs. ETH: Key Differences
| Feature | Ethereum Classic (ETC) | Ethereum (ETH) |
|---|---|---|
| Consensus | Proof-of-Work (PoW) | Proof-of-Stake (PoS) |
| Supply Cap | 210 million ETC | No fixed cap |
| Smart Contracts | Yes | Yes |
| Main Philosophy | “Code is Law” & Immutability | Flexibility & Network Upgrades |
| Security Risks | More vulnerable to 51% attacks | More secure due to PoS and strong developer support |
Challenges & Risks
⚠️ 51% Attack Risk – ETC has suffered multiple 51% attacks, where malicious actors gained control over the network’s hash power.
⚠️ Lower Adoption – Compared to Ethereum, ETC has fewer developers and dApps, making its ecosystem less vibrant.
⚠️ Scalability Issues – As a PoW network, Ethereum Classic faces limited scalability compared to Ethereum’s upgrades like layer-2 scaling.
Conclusion
Ethereum Classic (ETC) remains a key player in the blockchain space for those who value decentralization, immutability, and Proof-of-Work mining. While it faces challenges like security risks and lower adoption, ETC continues to be a viable alternative to Ethereum, offering a truly decentralized smart contract platform. As the crypto landscape evolves, Ethereum Classic’s commitment to “code is law” may attract users and developers who prioritize blockchain integrity and censorship resistance.