With a solid core development team and legacy role in the industry, Ethereum Classic continues to play an influential role in the cryptocurrency space -- turning adversity into advantages.
Ethereum Classic was created after the hacking of the Decentralized Autonomous Organization, a virtual venture capital fund. In the summer of 2016, an attacker stole $50 million in ETH -- Ethereum's native currency, Ether -- from the DAO. That was about 5% of all Ether issued at the time.
Following the attack, members of what is now the Ethereum community decided to hard fork the network and revert the illicit transactions. A hard fork involves an upgrade of a blockchain network that can incorporate major changes to the protocol.
As a result of the hard fork Ethereum was born and Ethereum Classic remained -- thus giving birth, or rebirth, to the blockchain, and its cryptocurrency, ETC.
Scammers, Hard Forks, & 51% Attacks
Ethereum Classic last week completed its latest hard fork called Agharta, which helps restore the connection between Ethereum Classic and Ethereum. The fork added Ethereum Constantinople operation codes to the mainnet, and is actually a series of updates including Atlantis in mid-September 2019 and Aztlán to follow - all aimed at ensuring compatibility with the Ethereum chain and it’s recent upgrades. ETC has seen an uptick in its Fundamental Crypto Asset Score rating in the lead-up to the hard fork, primarily led by User Activity metrics.
Not long after the hard fork, scammers turned up offering people the ability to claim Agharta Coins, which don’t exist as the fork was non-contentious. The ETC Cooperative was quick to sniff out the scam and warn users. The scam occurred almost exactly a year after the community suffered a 51% attack in January 2019 that resulted in double spends for 219,000 ETC or about $1.1 million.
ETC Successfully Hard Forks Agharta
Jan. 14, 2020
FCAS is up 5-points (0.58%)
Developer Behavior is down 2-points (-0.22)
User Activity is up 16-points (1.96%)
Market Maturity is up 1-point (0.12%)
Ethereum Classic overall health has climbed 6-points over the last 2 weeks, driven by an increase in User Activity. Price is up more than 25% since mid-December.
The Agharta hard fork is a logical move for ETC community members who want to remain compatible with their more popular sister chain. As well, speculators and miners on Ethereum might find refuge on Classic as a contingent opposes Ethereum’s move to a new consensus mechanism, ProgPoW and then Proof-of-Stake.
This respite, however, may be short-lived if Ethereum Classic fails to differentiate itself from Ethereum in the long run. Looking ahead, it will be vital that ETC refines and presents a unique value prop to the market in order to drive the development of applications on top of its infrastructure.
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Correction: The byline on this story was originally incorrect, but has been updated.