Ethereum Classic is the original Ethereum blockchain that continues to operate as it was first created in 2015. It runs smart contracts, supports dApps, and uses Proof of Work (PoW) to validate transactions.

The network was born after a major split in 2016, following the infamous DAO hack. While most of the community chose to reverse the hack and move to a new chain (Ethereum), others stayed on the original chain, which became Ethereum Classic.

ETC, its native token, powers the network. Ethereum Classic stands for code immutability, decentralization, and preserving the original principles of blockchain — making it a unique and important project in the crypto world.

What is Ethereum Classic?

Ethereum Classic (ETC) is the original Ethereum blockchain that emerged after a major split in 2016.

The split, called a hard fork, occurred after a major hack targeted a project known as The DAO, a decentralized investment fund built on Ethereum smart contracts. The hacker stole around $50 million worth of ETH by exploiting flaws in the code.

To fix this, most of the Ethereum community voted for a hard fork that would reverse the hack and return the funds to users. This new chain became Ethereum (ETH). However, some miners and users disagreed, believing in the principle of immutability — that code is law. They chose to stick with the original chain, now called Ethereum Classic.

Ethereum Classic still runs the Ethereum Virtual Machine (EVM), supports smart contracts, and uses PoW to validate transactions. Unlike Ethereum, which switched to Proof of Stake, ETC remains committed to PoW and has a capped token supply with a fixed emissions schedule.

While Ethereum Classic has a smaller community, it remains a symbol of blockchain principles and continues to support dApps and decentralized finance. It serves as a living reminder of one of the most important events in Ethereum’s history.

How Does Ethereum Classic Work?

Ethereum Classic is a decentralized blockchain that runs on a PoW consensus mechanism, just like Bitcoin. Miners validate transactions and earn ETC tokens as rewards. Unlike Ethereum, which moved to Proof of Stake in 2022, Ethereum Classic remains firmly committed to PoW.

ETC operates without a full-time team. Instead, volunteers maintain the network. It values decentralization, conservative upgrades, and a belief in the “Code is Law” philosophy. Ethereum Classic prioritizes preserving the original vision of Ethereum, even if that means resisting changes seen as modern improvements.

The platform refers to its approach as “decentralization maximalism.” It sees Proof of Stake as compromising the integrity of a truly decentralized system. Though PoW is energy-intensive and criticized for its environmental impact, ETC argues that other blockchains switch to PoS mainly for financial reasons — not sustainability.

Ethereum Classic’s focus on immutability and original principles sets it apart from Ethereum and most newer blockchains. While this can make it seem outdated, its supporters believe in the strength of its simplicity, security, and trustless design.

Ethereum vs. Ethereum Classic

Ethereum and Ethereum Classic both started from the same blockchain. They were part of the original Ethereum platform, designed for building smart contracts and decentralized apps.

The split happened after the DAO hack in 2016, when a flaw in a smart contract led to the loss of $50 million worth of ether. To recover the funds, most of the community supported a hard fork that reversed the hack. This new chain became Ethereum, while the original chain, which kept the hacked transactions, was renamed Ethereum Classic.

Ethereum Classic sticks to the idea that “Code is Law.” It believes that blockchain rules should never be changed, no matter the situation. ETC uses Proof of Work and has a capped supply of around 210.7 million tokens. It focuses on decentralization and preserving the original Ethereum vision.

Ethereum, on the other hand, has evolved. It moved from Proof of Work to Proof of Stake and does not have a fixed supply. It supports a large ecosystem of apps, from NFTs to DeFi.

Choosing between them depends on your values. Ethereum Classic offers stability and original principles. Ethereum offers innovation, faster development, and a broader ecosystem of real-world applications. Both have their place in the crypto world.

ETC Token

ETC is the native cryptocurrency of the Ethereum Classic blockchain. It is used to pay for gas fees, transfer value between users, and reward miners who validate transactions.

Before the 2016 hard fork, ETC and Ethereum’s ETH were the same token. After the split, anyone holding ETH received an equal amount of ETC.

In December 2017, Ethereum Classic introduced a capped supply of 210.7 million ETC. Mining rewards are reduced by 20% every 5 million blocks, creating deflationary pressure. This setup is similar to Bitcoin, though ETC’s reductions happen about every 2.5 years instead of Bitcoin’s 4-year cycle.

Closing Thoughts

Ethereum Classic remains an important part of the crypto world. It preserves the original vision of Ethereum and follows the principle that “Code is Law.”

With its capped supply and commitment to Proof of Work, ETC offers a more conservative, unchanging alternative to modern blockchain developments.

While Ethereum continues to evolve with new features and Proof of Stake, Ethereum Classic stays focused on stability and decentralization. It may not be as popular, but it appeals to those who value consistency and trustless systems.

Both Ethereum and Ethereum Classic serve different purposes. The choice depends on whether you prefer innovation or the security of tradition.