Understanding the Inception of Ethereum Classic

HeidiTravels is back! (AND TRAVELING!)

Today I wanted to take a look into Ethereum Classic and how this blockchain is in many ways, a symbol for upholding the ideologies that were at the core for the very development of crypto in the first place.

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Ethereum Classic

  • Ranked 5th on coinmarketcap.com
  • Price- $19.82 per coin
  • Current circulating supply- 93 million coins
  • 24 hour volume- $740 million
  • Market cap- $1 billion.

If you didn’t already know by now, Ethereum Classic exists because a group of people believed strongly in upholding the values of an immutable blockchain, one that cannot be manipulated.
This difference in ideals was brought to light thanks to what happened when one hacker took advantage of a loophole in the code for the DAO.

I found a good article on blockgeeks.com that explains the back story of the DAO and the emergence of Ethereum Classic. This article also further explains soft forks and hard forks, so for those of you who need a bit more clarification on that topic be sure to check out the link for this article down below.

The DAO was a complex smart contract that would pretty much enable anyone to be a venture capitalist for emerging projects that were developed on the platform. If you wanted to help determine funding for a particular project you would have to purchase DAO tokens and use them to cast your vote.

The crowdfunding for the DAO raised 150million dollars worth of ether.

Only three weeks after they raised these funds, a hacker began draining what would be a total of $50million.

Here is where the panic and controversy begins. The Ethereum Foundation had a decision to make. After a failed attempt for implementing a soft fork, which was found to have vital flaws that would open the door for denial of service attacks, they were stuck with deciding to initiate a hard fork, or essentially let the hacker get away with it.
#So they decided to hard fork.

Hard forks can be scary because they can open the door for a competing cryptocurrency if a group of developers and miners decide to take on the work of maintaining the original blockchain.
Which is exactly what happened in this case.

Those who decided to continue the original Ethereum blockchain were individuals who believed strongly in an immutable blockchain, one where they wouldn’t just rewind it if something like a major hack occurred.

Here are the beginning lines to Ethereum Classic's Declaration of Independence:

“Let it be known to the entire world that on July 20th, 2016, at block 1,920,000, we as a community of sovereign individuals stood united by a common vision to continue the original Ethereum blockchain that is truly free from censorship, fraud or third party interference. In realizing that the blockchain represents absolute truth, we stand by it, supporting its immutability and its future. We do not make this declaration lightly, nor without forethought to the consequences of our actions. ”

As it stands right now, most of the big investors and lead developers decided to go with the Ethereum Foundation, leaving the team behind Ethereum Classic with a bit of an uphill battle establishing legitimacy. This is quite ironic since many will argue that Ethereum Classic stood by the original Ethereum morality that “Code is Law”

As I said in the beginning of this video, I’m in Bali and I’ll be filming in another exotic locations. Stay tuned for my upcoming videos these next few months for more insights into the crypto world that will be filmed from all over the globe!

Additional Reading/Sources:

ETC Website
ETC Declaration of Independence
History of ETC in detail
ETC Monetary Policy
Blockgeeks Article Comparing ETC & ETH/Explains Soft & Hard Forks
DoS (Denial of Service) Attack Explained

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If you didn’t already know by now, Ethereum Classic exists because a group of people believed strongly in upholding the values of an immutable blockchain, one that cannot be manipulated.

Yeah, this really is not the case. The ETC community broke immutability a long time ago. ETC and the corresponding monetary policy (coin emission) was designed entirely for Barry Silbert to get regulatory approval for his ETF and to look appealing to speculative investors. Not quite the freedom story they want you to believ​e.

https://steemit.com/ethereum/@kyle.anderson/more-money-for-the-early-visionaries-why-the-eth-chain-is-so-successful-revisiting-why-consensus

I left out an important point regarding the code is law arguments made by Ethereum Classic supporters. Ethereum Classic broke their stance on immutability at the very beginning. They certainly don't market any of these changes. They have changed their transaction execution rules to mitigate DoS attacks. This change altered the execution of several Ether containing contracts. Barry Silbert rallied the community around the need to finalize a "monetary policy" - so his investment fund could be considered. They also had the difficulty bomb to deal with. ETC is not the "code is law" they claim. - no blockchain can be.

like your analysis, follow :)


Underdog or hero?

The amazing travel, and you have made a really fun travel, Bali is one of Indonesia's tourist attractions full of beautiful scenery, I really love Bali, whenever I go there, thank you for sharing This beautiful travel in Steemit, I'm glad to see you happy and always have a nice day for you my friend @heiditravels.

upvote and follow you my Friends.


@syahhiran.

Well done post You deserve for getting Upvote from me. I appreciate on it and like it so much . Waiting for your latest post. Keep your good work and steeming on. Let's walk to my blog. I have a latest post. Your upvote is high motivation for me. Almost all Steemians do their best on this site. Keep steeming and earning.

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This comment has received a 0.15 % upvote from @booster thanks to: @hamzaoui.

Love your vids Heidi! Keep up the good work!

I'm a fan of ETC and his pure blockchain :)

I think we could see the same thing happening with bitcoin and the segwit 2x.

Kinda interesting to see the impact of this creation of 2 blockchain on a crypto. I think this can be also a good time for traders as the volatility will be big. Take care all and stay carefull, don't keep your bitcoin in an exchange.

Thanks for the great video always enjoy listening to your content :)! x

FINALLY no more heidistays!!! Weee

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On the road again... :)

This underscores why Vitalik Buterin is making bad decisions.

It was his idea to fork the coin, to "rewind" and take the funds back.

The DAO "hack" was a smart contract -- using Vitalik's language, to transfer funds to someone. Their rule - "code is law" only applies if Vitalik thinks it does, apparently.

By offering a turing-complete language and then rescinding the ability of someone to create a contract with the very same rules just shows the shaky foundations of ETH.

Their transfer over to "Proof of Stake" will prove to be equally disasterous. I caution anyone using this beyond daytrading scalps to reconsider it as an "investment", since it has such shaky ethics behind it.

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haha, pretty funny everyone always talks about decentralized but then there's this Vitalik guy actually running everything. I think it's a bit odd that he looks like Joffrey Baratheon. hmm

Good analysis ....

Good video, thanks!

I think in the long run Ethereum classic will be the winner. People are still investing in this coin even after the market downfall. people are realising it's potential. Ethereum on the other hand is highly overpriced that's why it has been falling like a sheep. Ethereum classic if we see by logic, is still under valued and underrated. Maybe the immutable contract is the reason or the other, but I hae a great investment in entereum classic and I hope it should grow in value .
Thanks @heiditravels for the info.

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I think ETH and this get rich quick ICO-mania is really throwing a monkey wrench into overall coin values. You can watch these weekend ICOs start to drain ethereum into them. Between that and the bitcoin segwit/hard fork uncertainty, everything get dragged down. I look for litecoin to be the real winner here. Seems it's already to go at least 4x faster than bitcoin, and unlike ethereum, it's a true coin with a max number of coins.

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People are waking up at last ;-)

@heiditravels -Though I had read up about cryptos and ETH/ETC, this blog was quite useful because you focused on the real reason behind the split and how a group of good samaritans stood by the original vision of the immutable blockchain. Thanks for sharing this. Also - Bali is lovely and hope you have a good time there. Kudos on the idea of combining crypto and travle by the way! :) Upvoted

At my end, I continued my observations of nuggets of wisdom from wildlife and wrote a blog 'How to Chill - 🐵
Monkey Style' with my wildlife photos and musings with a twist
. I request you to take a look at it when you have time. Your comments, as always, would be an encouragement and incentive for me to make better blogs. Thanks

Someday I will have the opportunity to travel to that place In the meantime I will save.

If for some reason I can not save enough I would cry But I would have saved money :)

Was around for that split and owned ETH at the time, was curious how it would pan out but it worked out rather well. ETH was in beta at the time which is why they decided to hard fork then. It just sucks that even after that it still had the same flaws as bitcoin!

thanks for the info on ETC

steemit dollar was month ago 2 USD but now 1 steemit dollar = 0.94 USD : what u think about this ? steemit dollar will fall more or will recup ?

Very informative thank you. Cheers mike

@heiditravels I always like your analysis. Are you bullish on Etherium classic? wish you a blessed weekend

This is an incredible journey of yours, a remarkable achievement I am amazed to see him hope in the future more fun again with what there is this can be extraordinary
Will you follow me and upvote me and share my post if you do it I feel very happy congratulations for you good luck always

yes you are right etherium classic will be blast soon.

Seems you did very hard work before posting this blog

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agree!

great. thank you for sharing

thanks for the easy and informative read Your focus on the fork of the matter hit the spot!

It's crazy to think a month ago people were talking about the BTC ETH flippening, now we're possibly starring down the barrel of a ETH ETC flippening!

Just bought 1 ETC. The price seems to have slipped to $18 so it's the right time to invest.

great job @heidi love your style for information about crypto tips! thanks

Ethereum classic has a lot of promises. Almost the same supply with ethereum.

I've been in both places. I loved Bali...Beautiful beaches. Great place to travel to. Sticking with Cryptos and diversifying between multiple ones.
Thanks for the post.

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How did you like Qatar? I had a decent layover there so I took a bus from the airport and drove around the city center for a couple hours. Then I got out to walk around and noticed that I was pretty much the ONLY pedestrian haha. 20 minutes in that heat at midday was all I could handle.

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I can imagine the heat @heiditravels! These desert-cities seem fake and out of context. Investment pockets for oil money. For many people not worth visiting.

Thanks for your post!

Great video, thanks for sharing. ETC is great and i think it has real potential. Hope that tan didn't hurt too much in Doha...enjoy Bali :)

Thanks for information...

Beautiful! This looks like a great place to go!:) Please check my little journey that I made soon. I hope you enjoy my photos. @nakedchef89

https://steemit.com/travel/@nakedchef89/my-trip-to-canada

Nice info! Thanks for sharing.

Ethereum has a great future ahead, it's among my favorite coins. Great contents i like it, keep it up.

Thanks for the information, let us see how the market moves in the near future.

Your article made me understand very well the reason behind the creation ETC after ETH. thanks

Thanks for the info. Always trying to learn more about crypto currency. Crazy that it got hacked. :( What a nightmare.

BTW, love that you got to visit Bali. When I visited back in January, there was so much trash on the beach... looks like your beach was clean! So nice to see that :)

It's great analysis on ethereum. I think the problem is that most Americans are unable to find places to buy the Ethereum.

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Which "Americans" are you talking about here? North, Central, South? North Americans can easily purchase ETH on Coinbase and Kraken.

Thanks for the brief history! I really like how you focused on the people behind the decisions and what their motivations were.

thanks for keeping us up to date on everything.

Thank you for a useful post @ heiditravels ,, i am waiting your next vidio about understanding the world of crypto .., many of us do not understand it ,, really your post is very worth to read

I remember the shock of seeing the first tweets about the DAO hack. I only had a few hundred dollars invested but it was a bubble bursting experience that took me some time to recover from. Enjoy Bali.

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It's a great lesson to learn though, sometimes it pays to weather the storm when everyone says it's a goner... particularly if you can recognize a project with real longevity.

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I actually converted a few ETH to STEEM to help build my Steempower. The ETC I forgot about and have sitting waiting to go boom or bust.

Super! Look at my blog please! I hope you will enjoy!

congrats on travelling again! enjoy! :)

Very good information thank you I invest in ether and I know it's going to go up its the wave of the future this must be shared 💥

I am wondering if the same is going to happen to Bitcoin on August 1st, there has been a lot of noise around it.

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I can't tell the future but a big part of me doubts there will be a split. I'm sure they will figure out a way to incentivize everyone to stick with the lead blockchain. But I could easily be wrong, and we'd be in for a crazy year with BTC if that happens!

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Haha, I also believe that they will stay with the lead blockchain, or at least I hope!

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from what I understand its not August 1st we have to worry about, its October!

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October is a great month for getting shit done.


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I have been following this currency for a long time and I see great potential in it ... In general, the article is informative. Thank you!

Good work spreading the info. And I want to note that including the false start "misake" was great to see. It's always awesome to see people release more "real" videos. Looking forward to more!

I am absolutely appalled that nobody was holding an umbrella or something to shade the dutchess of decentralization in her first attempt to record. Troubles with traveling Heidi. But very humble of you to not travel with servants.

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LOL I'm a down-to-earth-dutchess-of-decentralization.

Came for some dope travel travel info, left with more crypto knowlege. Lmao. So is it worth investing in the "older" version of a coin after a hard fork? I wonder what people will do if there is a hard fork in Bitcoin...

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Well you can look at ETH/ETC, Zcash/Zclassic/Zen and see what you're findings are in that regard. If BTC hardforks it will most likely be mayhem lol

Good read!!! I look forward to reading more interesting post from you. Thanks

I wonder what the value of Ethereum Classic will rise to?

Nice summary of the backstory. Happy travels.

Yo man, I know that heat. I was in the UAE for a stint. And it is nothing to underestimate for sure. I side with ETH over ETC btw.

120 degrees !!! HOT!
Informative.
Enjoy your travels : )

I am fan of ETC .....what you say it's truly Awesome ......thanks for sharing

Thanks that helps my understanding

Forget the Heat

Good post Mrs. @heiditravels , best regards, may we be friends

After the fall of ETH because of the ICO cashing in. I'm beginning to look at ETC

Visit the Philippines next time Heidi :)

Heidi, did you know that without any makeup, you really don't seem like you're making anything up?

love ur vids period tho ferreal yo.

scotty_ETH_donation_pub_addy

firm believer in etc, never stopped mining.

Thanks for sharing this. It's very helpful. However, if you permit, I'd like to share my misadventure with Jaxx wallet and Ethereum classic. It's very easy to lose money with that wallet: https://steemit.com/cryptocurrency/@danbadjar/my-misadventre-with-jaxx-and-etc-worst-wallet-ever

Hello heiditraverl l am @mawardi ... I just joined in this steemit .. i want to be like you .. help me in developing myself in network This steemit ..thank you

Ethereum Classic ranked 5th wow thanks man for sharing :)

Beautiful post ! Thank you so much for your effort !!

Upvoted !

Would you guys rather invest in ETC or ETH?
At the moment I am only invested in BTC, but I planning on buying some ETH, ANS, DASH and LTC. So I am curious for your advice?

Let me know!

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I don't think ETH is good for long run,Because ETH has unlimited supply .

Good analysis @heiditravels but i think we have missed it because today rate is approximately 16 US dollars ,I personally like fast growing Burst due to low rates ($0.007239),fee and fast transaction.

Such a great analysis on this. It's always nice to learn something new about cryptos! Upvoted.

since I've seen your Vlogs i tended to watch them first then anyone's else but in today's scenario i think you should make some in terms of market conditions.what i think market is very sensitive and every body should be conscious of consequences .

Beautiful! This looks like a great place to go!:) Please check my little journey that I made soon. I hope you enjoy my photos. @nakedchef89

https://steemit.com/travel/@nakedchef89/my-trip-to-canada

nice reading this blog deserves more of our upvoted, resteeming and following you from now

Hey
Thanks for sharing this great article :) useful

It's fun to watch - in a white-knuckle sort of way - how all this does/doesn't impact the hubbub around BTC, hard forks, soft forks, UASF, etc.

And it's interesting to see how ETH spends one week looking invincible, the next week with ICOs being launched right and left built on its platform, the next week imploding, and now...well, ICOs are still around, right? That Tezos thing went ape.

Good times.

Also, stay hydrated and use sunscreen.

Etc and ETH could be good in future, now me must wait bitcoin segwit on 1 August that can reduce price to all crypto

It's never too late to ride the gravy train .. And this trains going all the way to the 100 dollar station ... maybe not today, maybe not tomorrow but soon red scarlet...

Congratulations @heiditravels!
Your post was mentioned in my hit parade in the following category:

  • Pending payout - Ranked 9 with $ 304,06

Great work on this as usual @heidietravels :)

Great Post well done

ETC is a hodl. waiting for emerald wallet to come out so i cn finally store it hahaha

very good
Please support for me
thank you

Better to excange some btc for etc before aug. 1st then?

About get my head around ETC. You really made it a ton easier to catch up and become more informed on the subject. Thank you!

Thanks to the great author for the post, very useful information for beginners!

hoş makale beni takip lütfen

I will probably buy some.

could you do a video explaining what just happened w/ bitcoin??? Good stuff Heidi hope y'all r well!

Let's wait what happens to ETC after the possible fork split of bitcoin august first.

Enjoy Bali :D:D:D

I am Join with you.......good