Buy Ethereum Classic (ETC) in the USA With USD | CoinJar

What Is Ethereum Classic (ETC)? It is a smart contract network, where developers build and run apps (called dApps, which are apps built on the rather than on the internet). The native token of this network is ETC.

Let’s break it down.

Understanding Ethereum Classic (ETC)

The origins: Ethereum Classic’s birth

Ethereum Classic was born in 2016 as a result of a significant event in the crypto world. To understand it, we need to rewind a bit.

The DAO hack

Imagine a digital organisation called The DAO (Decentralised Autonomous Organisation).

It was like a venture capital fund run by code on the Ethereum blockchain. People invested their money in The DAO, hoping for great returns. But then, disaster struck! A hacker in The DAO’s smart contract and drained a massive amount of Ether (ETH).

The great divide

The Ethereum community faced a dilemma. Should they reverse the hack and return the stolen funds (like hitting the “undo” button)? Or should they stick to the principle that “Code is Law,” meaning that once a smart contract executes, its outcome is final?

The split

The community split into two camps: Majority Opinion and the Rebels.

Majority Opinion

Most people chose to reverse the hack, creating a new version of Ethereum (which we now know as Ethereum or ETH).

The Rebels

A smaller group believed in the original Ethereum vision. They stood by the unaltered history and the Proof-of-Work (PoW) consensus mechanism. This group became Ethereum Classic (ETC).

What makes Ethereum Classic unique?

Code Is Law

ETC sticks to the idea that smart contracts are like legal contracts. Once they execute, there’s no turning back. If you invest in a flawed project, you bear the consequences.

Decentralized governance

ETC’s smart contracts operate without intermediaries. No lawyers, no judges — just code. If conditions are met, the contract self-executes. If not, penalties apply.

Blockchain twins

Think of Ethereum as the older twin and Ethereum Classic as the younger one. They share DNA (the same codebase) but have different personalities. ETC retains the original blockchain, while ETH has moved to Proof-of-Stake (PoS).

Smart contracts

What Are Smart Contracts? Imagine if contracts could execute themselves. They automatically enforce agreements when specific conditions are met.

Here are some everyday examples. Take real estate for example.

If the buyer pays the deposit by a certain date, the contract proceeds.

No lawyers are needed, the code does the job.

Smart contracts live on a distributed ledger (a fancy term for a shared database). No central authority controls them. They’re tamper-proof and transparent.

Conclusion: Ethereum Classic

Ethereum Classic is like the rebel sibling. It clings to the original Ethereum principles, even when the majority went a different way. So, next time you hear about ETC, remember, it’s the blockchain that believes in “Code is Law.”