Today, Ethereum (ETH) and Ethereum Classic (ETC) are distinct blockchains with unique cryptocurrencies. However, they originated from a single blockchain that split following the infamous DAO hack—one of the most pivotal events in crypto history.
Origins of ETH and ETC: The DAO Hack
The DAO (Decentralized Autonomous Organization) was a groundbreaking venture capital fund governed by smart contracts on the Ethereum blockchain. Hackers exploited a loophole in its code, draining 3.6 million Ether (worth ~$50 million then) into a "child DAO." This crisis sparked debates about blockchain philosophy—immutability versus adaptability—leading to the split.
The Conflict and the Fork
- ETH (Ethereum): Supporters of the "hard fork" prioritized rectifying the hack, rolling back transactions to return stolen funds. This violated blockchain immutability but emphasized pragmatism.
- ETC (Ethereum Classic): Purists retained the original chain, upholding decentralization and immutability. ETC’s blockchain preserved all transactions, including the hack.
👉 Discover how ETH and ETC evolved post-split
Consensus Mechanism
| Feature | ETH (Proof of Stake) | ETC (Proof of Work) |
|---|---|---|
| Energy Use | Low (energy-efficient) | High (computationally intensive) |
| Security | Validators stake ETH; attacks are costly | Miners compete to solve puzzles |
| Speed | Faster transactions (~12 seconds/block) | Slower (~15 seconds/block) |
Token Supply and Monetary Policy
- ETH: No fixed supply; capped inflation at 4.5%. Flexible monetary policy.
- ETC: Fixed supply of 210.7 million tokens. Predictable, unchangeable policy.
Market Value
ETH dominates with broader adoption, while ETC’s commitment to PoW limits its market reach.
Network Upgrades
- ETH: Focuses on scalability (e.g., Ethereum 2.0). Frequent upgrades.
- ETC: Prioritizes stability; minimal changes to core protocols.
👉 Learn why ETH’s upgrades matter for investors
FAQs
1. Can ETH and ETC merge again?
No. Their philosophical and technical differences make reconciliation unlikely.
2. Which is more secure: PoS or PoW?
PoS (ETH) reduces 51% attack risks but is newer. PoW (ETC) is battle-tested but energy-heavy.
3. Should I invest in ETC or ETH?
ETH offers growth potential; ETC appeals to blockchain traditionalists.
Conclusion
ETH and ETC exemplify how blockchain ideologies shape technology. While ETH evolves dynamically, ETC remains a testament to crypto’s original principles.
👉 Explore ETH and ETC’s latest developments
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