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Ethereum Classic – Detailed review
When investing in virtual currency, you need to do your research. We provide you with reviews of each world top cryptocurrency out there, so that you can find the best crypto coins to invest in for you. This is a review of Ethereum Classic.
Origin & Background
Ethereum Classic is an open software platform based on blockchain technology. Ethereum Classic is very similar to Ethereum, with features such as decentralized applications and smart contracts. The main difference between the two begins with the DAO hack.
One of the most interesting concepts in the world of cypto is the idea of a decentralized autonomous organization (a “DAO”). Here’s a concise explanation of what a DAO is precisely, what they do, why they exist, and what they are able of.
A DAO is an exceptional organizational scheme in that it aims to work without much tinkering. DAO is an organization that can imitate a large number of the similar functions of a conventional corporation or business. However, the difference is that it does so without becoming bogged down in bureaucracy from committee governance or similar.
Cutting the human intermediaries out of the operation seems a bit eccentric to most people. That is also why the way a DAO works is so hard to comprehend. A DAO can, theoretically, run itself without having to be fiddled with by individuals at all.
So how does a DAO run itself? First and primary, a DAO is an organization that uses so-called “smart contracts”. The rules of behavior programmed into computer programs, to govern itself. What this means is that there’s not anyone “in charge” of a DAO in the conventional sense. However, a more mundane company a DAO operates through smart contracts without human intervention.
It really does not mean that a DAO cannot change its behavior. Members of a particular DAO have the capability to propose changes to the organization’s blockchain. However, with adequate consensus, the rest of the members can then take up those changes. Otherwise, they are rejected and the DAO’s governance remains unchanged.
The DAO Hack
On June 18, 2016, a hacker attacked the DAO smart contracts and was able to steal 3.6M Ethers, worth approximately $50 million at the time. This shocked the community and cause the price of Ether to drop from $20 to $11.
After the hack, the community quickly came together to decide on a fix. The large majority agreed to hard fork the Ethereum blockchain, which would undo the hack and return the stolen Ether. However, there was a minority group of people who believed the hack was due to the incompetence of the DAO developers and a reversal was against the belief that the blockchain cannot be altered.
Ethereum Classic still has some differences with Ethereum. Ethereum Classic will implement a fixed total supply of less than 230 million tokens. The team members behind Ethereum Classic all operate under pseudonyms, making many wonder what their true intentions are. While Ethereum has seen explosive growth its community and major technological innovations, Ethereum Classic has lagged behind.
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