The history of the original Ethereum network began back in 2013 when Vitalik Buterin’s idea for a new programming language didn’t gain much traction within the Bitcoin community.
Buterin made a case for Bitcoin to create a new programming
language that could automate tasks and allow apps to be built on top of its
blockchain.
As there wasn’t much interest in his idea, he decided to
raise funds via a crowd sale. In July 2014, one of the largest crypto
fundraising efforts took place — amassing 25,000 BTC with a market
capitalization of $17 million at the time.
Ethereum — a global, open-source software platform — was
born.
The platform would allow the creation of decentralized smart
contracts, which are essentially agreements between two parties that are written
in code. The contract gets processed automatically by the blockchain once the
conditions in the agreement are met. The combination of blockchain’s
immutability, teamed with its open-source functionality, makes smart contracts
very appealing to many businesses.
What are Ethereum (ETH) and Ethereum Classic (ETC)?
Ethereum is a public, open-source software
platform built to support smart contract functionality. The network uses Ether
(ETH) as its currency to process transactions and provides computational power
to developers. Ethereum is in the process of moving to a Proof of Stake (PoS)
consensus algorithm. This will make the blockchain faster, safer, and more
democratic.
Ethereum Classic is a cryptocurrency project that
operates through a blockchain network and is powered by smart contracts. The
Ethereum Classic blockchain stores all network information, specifically data
on accounts’ status and all data on performed transactions. This resource is an
open-source public platform. It is generally accepted that the coin’s main
feature is smart contracts. Ethereum Classic functions using a Proof of Work
consensus algorithm and has no plans to switch to PoS.
Ethereum Classic (ETC) came into existence in July 2016, when
members of the community rejected the latest hard fork and decided to continue
using the unforked version. The new fork was named Ethereum (ETH). Both
Ethereum and Ethereum Classic are decentralized programmable blockchains, which
offer the same function when it comes to building smart contracts and
decentralized apps (dApps).
The DAO Hard Fork
Following the DAO hack in 2016, Ethereum split into two
blockchains – Ethereum and Ethereum Classic. Ethereum was the result of the
hard fork, which reversed the $50 million (at the time) USD theft. The hard
fork made the hack transaction invalid, so investors in DAO could make up their
losses. On the other hand, supporters of Ethereum Classic opted not to move to
the new Ethereum blockchain following the DAO attack. However, they were in the
minority (only about 10% of users remained on the Ethereum Classic blockchain),
and therefore they never regained the USD 50 million lost in the theft.
Ethereum is the leading blockchain for ICOs, holding over 80%
of the market share. The ICO tokens are generally based on the ERC-20 token
model. While Ethereum Classic still works with smart contracts and dApps, it is
a far less popular choice for ICOs than Ethereum.
Have More Questions!!
Email at: - sales@blockchaindevelopments.io
Connect with the expert team: - https://bit.ly/2B32Az7
Comments
Post a Comment