If you enjoy captivating stories of technology and technology, the story of Ethereum Classic is one you’ll be interested to hear. It’s about a conflicting community, a huge hack and a decision which divided a whole blockchain into two. Do not fret if you’re not an expert on crypto. I’ll take you in steps so that it’s all clear!

It’s the Journey Begins with Ethereum

Let’s go back to where it all began with Ethereum. Ethereum was launched in July of 2015 as more than an exchange. It was not just about digital currency like Bitcoin It also introduced a revolutionary concept called “smart contracts.” In essence, they were small applications that could be run in the Ethereum blockchain. This enabled developers to create applications that didn’t depend on intermediaries, making Ethereum an ideal platform for projects with a creative flair.

Everyone was ecstatic. Developers were creating all sorts of projects using Ethereum which included something dubbed The DAO. And that’s when the real story gets interesting.

What Was The DAO?

Imagine a fund in which thousands of people from all over the globe pool their funds and decide on which investments to make and then it’s managed by a computer. That was The DAO (short for Decentralized Autonomous Organization). The DAO was an innovative thought that was similar to Kickstarter but a lot more exciting. At the time of wrapping the fundraising campaign on April DAO DAO had raised more than $150 million in Ethereum tokens (called the ETH). People were excited.

Then came the explosive.

The Hack That Shook Everything

On the 17th of June, 2016 a hacker discovered an error in the DAO’s software. The fault wasn’t with Ethereum it was the DAO’s and this flaw let the hacker to steal around 60 million dollars worth of Ethereum. Whoa. Like that an extremely innovative blockchain projects transformed into one of the most frightening times in the history of crypto.

The Ethereum community is currently facing an enormous dilemma. What can they do about this? Should they just let things be the way they were and take the losses as intangible (the “blockchain is immutable” idea)? Or, should they intervene and take action to recover the funds stolen?

A Tough Decision: The Hard Fork

After several weeks of heated debate The majority of Ethereum community voted to take action. Their idea? It’s a “hard fork.” This is an abbreviation for declaring that they’d divide Ethereum’s blockchain into two separate pathways. One will erase any hack like it never occurred, while giving back the funds stolen to investors. Another option would preserve the entire process exactly as it happened with hacks and all.

The hard fork became live on July 20th 2016,. Since then, Ethereum was divided into two blockchains. The new blockchain remained under the Ethereum name and carried on with the funds that were refunded. However, some people felt that tampering with the history of blockchain was against the fundamental principle of blockchain. They remained with the initial blockchain, unaltered, which was later renamed Ethereum Classic (ETC).

How Ethereum Classic Was Born

Ethereum Classic was not just about technology or code. The issue was values. The people who backed ETC believed in the notion of immutability – that when something is recorded onto the blockchain it’s there for all time regardless of. They believed that changing the blockchain to prevent the hack would create an unwise precedent. It was a mountain they would be killed on, and that’s why, Ethereum Classic was born.

The Timeline at a Glance

To make it easier to understand Here’s a brief overview of the events that transpired:

1. April 2016, It is the month that DAO debuts and collects more than $150 million.
2. July 17, 2016, It is reported that the DAO gets hacker-infested and 60 million dollars worth of Ethereum is lost.
3. The period between June and July 2016 is late. Discussions rage in the Ethereum community about what to do.
4. July 20th 2016. A hard fork has been carried out. Ethereum as well as Ethereum Classic split, forming two distinct blockchains.

Why Does Ethereum Classic Matter?

Ethereum Classic isn’t nearly as widely utilized as Ethereum currently, however it serves a vital function. It serves as an example of blockchain’s fundamental concepts, including the immutability and decentralization. Although Ethereum has evolved through updates such as Ethereum 2.0, Ethereum Classic is more of a time capsule. It’s a testament to notion that no one — not even the majority of the community should mess with the history of blockchain.

What Can We Learn?

The beginning of Ethereum Classic wasn’t just about finding stolen funds or sticking to a set of principles. It was about the way technology develops by making difficult decisions. It demonstrated how even in a world that is decentralized the people are able to have real and human disagreements about the right and right. There was a split in the community but both sides made legitimate points to make, which is the reason why we now are able to have Ethereum as well as Ethereum Classic.

If you’re just beginning to learn about blockchain technology or are just interested, the story of Ethereum Classic is a great illustration of the problems this technology is facing. It’s not always easy and that’s why it fascinating.

Here you are! The concept of Ethereum Classic first arose during intense debates on how to respond to the DAO hack in the year 2016. It may not have been a jolly moment in the history of crypto however it was an important one.