The much-disputed and relentless battlefield of Ethereum and Ethereum Classic has never failed to intrigue the members of the crypto world. The soi-disant “historic event” in the blockchain domain has multi-faceted dimensions. The community has already been divided into two squads — Ethereum Vs Ethereum Classic; where both stand out firmly for their set of opinions. For a novice investor (or a miner for that matter), it is important to understand the underpinning ideologies of both the parties and then take the next big step.
Here’s a comprehensive guide:
The Maiden Ethereum chain
Created in August 2015, by Vitalik Buterin, Ethereum is currently the second most valuable crypto currency in the world.
In the words of Vitalik Buterin, “Ethereum uses crypto economics which is a combination of cryptographic algorithms which aims to run decentralized systems over consensus-based networks. Ethereum’s blockchain understands the general-purpose programming language and doesn’t require different tools to run different categories of applications, instead uses a single blockchain for all kinds of applications to run smoothly.”
Put simply, Ethereum is a decentralized blockchain-based network, allowing the construction of decentralized applications (also called DAPPs) to be created over the Ethereum network which uses smart contracts.
A total of 1664 DAPPs have already been built so far, ranging from economic strategy games like Crypto Pioneers to a blockchain and AI fusioned ecosystem called- Qundrant Assets. Whereas the number of smart contracts executed so far stands at 800.
And what makes Ethereum be a proud owner of the second largest market capitalization is the fact that unlike the traditional blockchain network which requires each member of the community to process massive distributed ledgers and other data, Ethereum supports a network where only a chunk of the community can process these computational ledgers as well as promise a robust security system.
The use cases of Ethereum are large and ever-growing, namely- asset issuance, crowdfunding, domain registration, title registration, gambling, prediction markets, internet of things, voting and hundreds of other exciting futuristic applications.
Now let’s talk about the most debated topic of the crypto history- the DAO Attack.
But first- what’s a DAO?
DAO stands for Decentralized Autonomous Organization that is ingrained into the Ethereum blockchain. It works just like any other crowd funding investment organisation but in a decentralized and democratic manner, wherein motivated folks create a network in order to build an effective DAPP.
The organization has a central manager that decides who are the members and the voting rules, but its implementation shows, this can also be changed.
Any member can make a proposal, which is in the form of an ethereum transaction to either send ether or execute some contract, and other members can vote in support or against the proposal. Once a predetermined amount of time and a certain number of members have voted (around 20%), the proposal can be executed.
Apparently, anyone could buy a DAO token on a prescribed Ethereum fees and thereby hold a place in the building of a DAPP or maybe just a smart contract.
However, it is as simple to enter into a DAO as it is to step out of it. An unsatisfied or uninterested member can withdraw its ownership by simply utilizing the Split Function which allows one to get the invested Ethereums refunded soon as one passes a withdrawal request transaction into the network. However the refunded Ethereums cannot be accessed for 28 days since the day of withdrawal.
Here’s when the robust system got hit by the venomous attack. The presumed DAO hacker sent incessant split function requests consequently corrupting the DAO blockchain and extracted around $12 million ETH- nearly 14% of world’s total ethers.
Perhaps, dubious footprints of an evil trespasser blurred the crystal clear mechanism behind Ethereum’s DAO.
The community was now confronted by 2 possible solutions to rectify this attack-
What’s the difference?
If you’re still wondering as to what probable changes could have been done to the new coin, have a look:
Ethereum Squad Vs Ethereum Classic Squad
|Born on August 7, 2015 (according to coinmarket cap)||Born on July 24, 2016|
|Has upgraded to the DAO-Hard Fork||Has committed to the original chain- i.e. older version|
|Believes that changes were indispensible so as to prevent vulnerability issues||Believes that with the Hard Fork implemented, the principle immutability nature of the ETH network was lost|
|Has upgraded further- from PoW to a hybrid of PoW and PoS model||Is still working under the PoW model since it requires the participating nodes to upgrade to the latest software|
|Created to refund the money of the victims of the DAO attack||Created to uphold the original chain of ether|
|Ethereum (ETH) has a comparatively higher hash rate and hence a higher price- $439.27 USD (at the time of typing)||Ethereum Classic (ETC) has a lower hash rate and hence a lower price – $14.91 USD|
|Makes it prone to similar Hard Forks in the future, even making it highly vulnerable to more DAO-like attacks||Makes it immune to the interference of any third party, running with the original vision- of Ethereum network being a decentralized, democratic blockchain, preserving unhampered history.|
|There had been several Hard Forks implemented so far after the DAO- Hard Fork. The last being Metropolis: Byzantium HF on October 16, 2017 (block 4.37 mil). The roadmap for 2018 includes Constantinople, though dates are yet to be released.||The last Hard Fork, ECIP-1041, was implemented on May 29, 2018- not to create a new crypto currency but to make sure that their mining remains profitable; it shall remove the difficulty bomb. The next is planned on July 13, 2018, the Ethereum Emerald HF.|
A Final Note
Although, ETH holds the backing of noteworthy folks such as Vitalik Buterin and Gavin Woods, ETC is still capable of holding the reign and proves to be a diligent competitor; with the community working hard towards its improvisations. The final call is in the hands of the suitors who are seeing any of the two coins as a future prospective investment.