Date Launched: July 30, 2014
Amount Raised from ICO: $18.4M
Founders: See Ethereum
Ethereum Classic is an open software platform based on blockchain technology. Ethereum Classic is very similar to Ethereum, with features such as decentralized applications and smart contracts. The main difference between the two begins with the DAO hack.
The DAO (Decentralized Autonomous Organization) was a form of investordirected venture capital fund built on Ethereum. Holders of the DAO token could vote on projects, and projects with the most votes would receive an investment from DAO. If the investment made money, the money would get distributed among the token holders.
This was seen as a revolutionary idea at the time. The DAO raised an ICO for its fund, which attracted over $150 million worth of Ether investments, giving the DAO huge influence in the Ethereum community. However, the DAO was not properly programmed, and the smart contracts they made had vulnerabilities.
The DAO Hack
On June 18, 2016, a hacker attacked the DAO smart contracts and was able to steal 3.6M Ethers, worth approximately $50 million at the time. This shocked the community and cause the price of Ether to drop from $20 to $11.
After the hack, the community quickly came together to decide on a fix. The large majority agreed to hard fork the Ethereum blockchain, which would undo the hack and return the stolen Ether. However, there was minority group of people who believed the hack was due to the incompetence of the DAO developers and a reversal was against the belief that the blockchain can not be altered. The majority went on to create the Ethereum hard fork and the remaining blockchain with the DAO hack is now known as Ethereum Classic.
Ethereum Classic still has some differences with Ethereum. Ethereum Classic will implement a fixed total supply of less than 230 million tokens. The team members behind Ethereum Classic all operate under pseudonyms, making many wonder what their true intentions are. While Ethereum has seen explosive growth its community and major technological innovations, Ethereum Classic has lagged behind.