The whole truth about the fork: Ethereum Ethereum is better than Classic?

If you look closely at the list of available cryptocurrencies, it is easy to see that there are two versions: just Ethereum (ETH) and Ethereum Classic (ETC). Two of these cryptocurrencies not only have one name, but have an interesting history, which partly became one of the most important events in the entire history of cryptomeria. The battle between Ethereum and Ethereum Classic touches on the ethics and ideology of cryptocurrency.

Before there was two different versions of Ethereum, there was only one Ethereum. But hackers managed to steal $ 50 million in coins, and the result was the appearance of two separate camps in kryptomere.

Something like Ethereum separated, leaving behind Ethereum Classic.

the

What is Ethereum?

In General terms, and Ethereum and Ethereum Classic is a platform on which to build a variety of applications.
The smart contract is a contract scheme, which is stored in the blockchain and executed under certain conditions. They are controlled bloccano and executed them, and the blockchain in these respects serves as an objective and unbiased third party while performing transactions.

Such smart contracts govern the entire ecosystem of Ethereum. As the contracts are automated, transaction, and application platform Ethereum become very attractive for building all kinds of systems and interdependencies.

These apps are known as "dappy" (dapp, decentalised apps), or decentralized applications have a diverse set of functionalities and goals, and they all depend on the Ethereum platform.

the

a Few words about DAO

The moment of the breakup ETC and ETH associated with the organization known as Decentralised Autonomous Organization, she is DAO.
DAO was essentially a decentralized venture capital or hedge Fund that is going to Fund the decentralized application (DAPP), built in the Ethereum ecosystem.

DAO was created so that the founders Fund had the right to say what decentralized application will receive funding. Investors then had to buy tokens DAO using ETH as a currency. The DAO token holders integrated into the system of DAO and gave them the right to vote.

The Method of approval of decentralized applications was quite simple. First, they had to make a white list of reputable people in the community Ethereum, acting as curators. Then, DAPP had to vote those who had tokens DAO. As soon as the offer received 20 percent of votes, it received a share of funds in the DAO required to start.

Flexible process and huge potential of the DAO led to the fact that a huge number of people have joined in this flow. In the first month of the creation of the DAO Fund has raised more than $ 150 million in Averianova equivalent.

Sponsors who wanted to withdraw from the DAO, had access to the exit door, which was called "split" (Split Function). This split feature allows the sponsor Ethereum, which he invested, and allows you to create your own Child DAO, which worked essentially like a smaller version of DAO. The only condition was that the sponsors had to keep your Ethereum in the next 28 days, and then spend. This "division function" and opened a giant loophole in the system of DAO.

At its peak, at least DAO and attracted $ 150 million through crowdfunding, he had serious problems with security. 17 June 2016 unknown individual or group took about 50 million dollars. Some said it was hacking, but to call this theft, break-in means to exaggerate the level of knowledge required for hacking is so poorly guarded platform.

In Other words, the system could break very easily.

the

Hacking DAO — the birth of Ethereum

To get out of DAO, it was only necessary to send the request, and split the offset the user Ethereum on the stock exchange in exchange for tokens DAO, then updated the blockchain by typing it in a transaction, and would update the internal balance of the token.

The Hacker entered a recursive function in a query, which allowed him in fact to repeat the request several times for the same token DAO, before the transaction was registered.

To understand how big was the hole in security system, a recursive function was working up until a third of the inventory DAO is not exhausted.

At the time, DAO was a huge proportion of the total number of Ethereum, about 14 percent. $ 50 million, almost a third of the original amount DAO, was stolen, and the community Ethereum DAO and began to growl. The solution had to be found quickly.

The decision of the majority was the fact that Ethereum needs to create a fork or to completely stop the blockchain and create something new from scratch. This "something new" is Ethereum (ETH). Ethereum Classic (ETC), as the name implies, this is the original Ethereum, still using the original blockchain.

The decision to make the fork, obviously, caused the division and has generated a lot of controversy, and although the majority voted in favor of a fork of the blockchain remained a small but significant percentage of people (approximately 10 percent) who held on to the original blockchain. Fork Ethereum allowed to return $ 50 million that were stolen.

the

ETC and ETH: differences

Ethereum (ETH) operates on an entirely new blockchain, and the majority of miners use this new version.

Ethereum Classic (ETC) works on the same Protocol and performs a similar function, but has some differences in the community. 10 percent of people from the original blockchain Ethereum is relatively unknown and welcome the idea of the blockchain, which cannot be rewritten and redone. Price ETC for the most part is dictated by the speculative market, like many other altcoins.

Ethereum (ETH) for the otherhand, is more consistent with the way the "world" computer company producing software that wants to grow and maybe exercise more hardforce in the future. Community leaders ETH have a much more open and exposed to the public more than the leaders of the community ETC. ETH in the first place has value because of the involvement of the speculative market, but it enjoys the support of the community. Ethereum Alliance, for example, includes a lot of companies worth billions of dollars — Accenture, JP Morgan, Microsoft and UBS. This support in turn displays ETH to the foreground.

You Can say that ETH and ETC has their own strengths and weaknesses, but the strength remains largely on the side of the ETH, the Ethereum because capitalization is approaching 15 billion dollars, while ETC is floating 1.5 billion.

the

ETC vs ETH: an ideological split

To this point in our discussion, you should already understand the difference between ETH and ETC.

To continue the dialogue, you need to understand what are the ideological differences between the communities. Ideological point, it is important to understand because it is an ideology attracts people, and community support is vital for most cryptocurrencies.

It is Important to note that Ethereum is not to blame for what happened with DAO because DAO does not depend on Ethereum. However, the hacking cost $ 50 million scared the community, and the price is ETH has fallen from $ 20 to 13.

The Decision to fork was made mostly due to the fact that the missing Ethereum $ 50 million remained in the hacker subsidiary of DAO, and access could not be obtained within 28 days, because it was working smart-contract to the DAO. The community Ethereum was one of three options:

the

the
• — inaction and idleness: the approach of "code is law" was an integral component of many strong supporters that support Ethereum. These supporters for the most part and steel group, which was established ETC. Most people did not welcome the disappearance of 50 million dollars, so I decided to take action and to vote for other;
the
• — softporn: softpark gave the holders the choice to upgrade or not. Whatever decision they may take updated and neobrevipes holders can interact. The idea of softforce was to isolate and separate all the blocks containing the hacking of the transaction, not allowing them to further withdraw and move funds. Softporn was problematic, because it leads to the vector of attack "denial of service". This DoS attack was essentially a change in how miners are rewarded in the ecosystem, and for this reason the community has decided to implement hardwork;
the
• — hardporn: the main difference between soft - and hardforum is that hardforce not allow you to communicate the updated and neobrevipes holders. If you have not joined the updated blockchain, you will not be able to communicate with users in the new system.

The Community prefer hardwork.

It hardwork led to the fact that ETH is separated from the main blockchain. This point was concluded in block 1 920 000 — exactly to hacking DAO.

As hardwork solved the problem with the attack is DAO?

Hardwork helped to return the funds to everyone who invested in DAO, using the so-called smart contract reimbursement. For every 100 DAO token holders received 1 ETH.

Gavin wood, one of the founders of Ethereum, called this moment "the most important moment in the history of cryptocurrencies after the birth of Bitcoin".

You See, Ethereum was originally created as a tool against financial corruption. Unbreakable blockchain was supposed to save mankind from the tendency to corruption. Hacking DAO split and the Ethereum community, because the decision to hold hardwork — and in fact to manipulate with bacchanal — was contrary to the original purpose of Ethereum.

The Ideologists who were unwavering in their beliefs, stayed with ETC, while the rest flowed into Ethereum for the survival and prosperity of the community. There is a natural antagonism between these two groups for this reason. In addition, many opponents of Ethereum went to camp ETC for the continued fight against Ethereum. The enemy of my enemy is my friend.

the

ETC and ETH:

Obviously, each of these blockchains has its advantages and disadvantages.

The biggest problem Ethereum Classic that coin is incompatible with hardforum ETH, and many large players Ethereum, they use it to ETH. Since ETC is not backwards compatible with hardforum, users ETC will not be able to enjoy the updates that build on top of ETH, the Ethereum like the transition from Proof of Work to Proof of Stake.

As for Ethereum, it is a big problem is that since printing hard forks were broken, many are confident in further growth in the number hardforce in the future. Once the Ethereum community could come together and make an important decision for cost and for the future of the blockchain, some believed in its rigid mathematical objectivity. Some people openly talk that community leaders can manipulate the price in the future ETH. This risk adds volatility to long-term forecasting of prices.

the

ETC and ETH: conclusion

In the battle of the ETC and ETH, the vast majority of supporters of the crypt you choose, of course, Ethereum. The above mentioned problems ETH in the name of fair valuation of both communities, but being criptonita, you have to find any available information on the subject.

Although Ethereum (ETH) may appear as a mutation, and the violation of the principles of immutability of Ethereum, it was a victoryEthereum community to gather and give battle to the worst hack in the history of cryptocurrency.

If not for hardwork, Ethereum platform that allows you to live and work for the many excellent decentralized applications could not be.

Ethereum Power lies in the community, because it is a platform that allows others to create projects that can change almost any industry. Ethereum Classic, on the other hand, is overshadowed by the unfortunate story of DAO. The idea of a DAO could make a significant contribution to the future of technology, and a key error in its security resulted in the birth of a more powerful platform.

Exceptional capitalization and strong community Ethereum portend a bright future that is ETH. ETC, on the other hand, is constantly losing capitalization and consists of the faithful followers of the blockchain, opponents ETH and just speculators. However, with the addition of Ethereum Classic on Coinbase, looks like the competition ETH and ETC will be deployed.

Comparing Bitcoin and Bitcoin Cash read .