It is a battle of supremacy in the cryptocurrency space. With thousands of cryptos in the marketplace, and many more being launched literally every week, it becomes quite puzzling why there are so many digital assets. A quick look at reddit or YouTube and you will see fans of different projects, hype their coins. A very common example, is the battle between Bitcoin and Bitcoin Cash – both sides of the divide have claimed that their version is the real and original “Bitcoin”. This article will review the battle between Ethereum and Ethereum Classic.
The battle between both cryptos is both ethical and ideological. But before we delve in to explore their differences, let’s have a look at some history.
The Decentralized Autonomous Organization
One of the selling points of Ethereum is its smart contracts. A smart contract is an agreement between two or more parties, without the need of a third party; the terms of the contract are negotiated and executed digitally.
The Decentralized Autonomous Organization, otherwise known as the DAO was a complex smart contract which was set to revolutionize Ethereum as we know it. It was designed to be a decentralized venture capital fund for all future decentralized apps (DApps) created in the ecosystem. Put differently, if you wanted to have a say on which DApps gets funding, you needed to buy the DAO Tokens using Ether.
Sadly, on the 17th of June, 2016, hackers were able to exploit a loophole in the DAO coding and managed to siphon about $50 million dollars. This brought an end to the DAO and gave birth to what is now known as Ethereum Classic, ETC.
Ethereum vs Ethereum Classic
In order to reverse the action of these hackers, the Ethereum blockchain was rolled back to before the hack occurred. However, this did not go down well with everybody on the network. Some individuals were opposed to tampering with the blockchain (something that has been touted for being immutable). Individuals who were opposed to making changes to the blockchain (a hard fork) decided to stick to the original chain which contained the hack. This original chain is now known as “Ethereum Classic”.
Now you may be wondering why anyone would want to stick to a blockchain that has a hack on it (that’s like giving out free money to criminals), considering the fact that even Gavin Wood and the founder of Ethereum, Vitalik Buterin, moved to the new chain. This is where ideology comes in.
Ethereum and cryptocurrencies in general were introduced as a solution to financial corruption, void of human manipulation. And changing the entire chain because of one hack could completely defeat the purpose of Ethereum. Put differently, a new chain will simply prove that blockchain can be tampered with. Crypto-idealists like Barry Silbert, the CEO of Grayscale rallied behind ETC.
Although I don’t have any problem with crypto-idealists behind ETC, I am particularly worried about the kind of support the currency will get. As we all know, the rate of adoption of a cryptocurrency will ultimately affect its price, and ETH has done that quite well. Most of the heavyweights have moved to ETH and it is backed by the Enterprise Ethereum Alliance (EEA), which has members like Microsoft, Toyota, and JP Morgan, among others.