At this point, I’m going to assume that everyone knows what Ethereum is like, practically the largest cryptocurrency right after the original bitcoin but did you know that Ethereum was tampered with? That’s why the thumbnail of this video includes some roots. Ethereum classic is an alternative to Ethereum with much deeper roots
Creation of Ethereum now, you can choose to believe this or not, but the original Ethereum remained created by a 19-year-old Russian kid named vitalik buterin in 2013. He wrote what remains called a white paper, a road map that looks like a college thesis but outlines an idea. This white paper would go on to be the foundation of the beginning of Ethereum. In his own words from the white paper, Ethereum is a next-generation smart contract and decentralized application platform.
It’s an agreement written in code that has a set of rules that needs to remain followed. Using these smart contracts, we can write entire programs or applications, commonly called decentralized applications or dabs for short now dapps are helpful because they can replace any tool that a financial institution has, for example, you can send and receive Ethereum you can lend Ethereum for an interest rate you can even borrow Ethereum you can create margin trades on Ethereum,
you can even write a smart contract that acts as an insurance payout means intelligent contracts are the building blocks that allow us to essentially copy banks and insurance corporations. And other financial businesses and then just put them on the blockchain for everyone to use, so now that we have a brief overview of Ethereum and how it got.
There is this organization on the blockchain called the dao. The dao was a group of crowd-funded investors that got together and threw money into a specific protocol. That money remained then used to grow things on the Ethereum network, which would then return a profit and remain given back to the investors.
Now on to the critical part, the dao stay hacked. Someone found a bug in the code and just anonymously stole 50 million dollars worth of Ethereum. Now when I say a bunch of money, I mean 150 million dollars from around 11 000 investors.
A blockchain stand composed of a bunch of blocks. Each block starts with a summary of all of the past blocks, adding some new information. You can see immediately these summaries are mathematical hashes. In the case of Ethereum, the further information was transactions and intelligent contract interactions. So each time a new block remains added, there’s a unique summary of the blockchain. And the advantage of this is that you can never go back and change the blockchain because if you do. You mess up all the future summaries. They’ll be wrong.
I want to explain this idea as simply as possible, so one of the advantages of a blockchain is that you cannot change anything from the past. It is quite literally where Ethereum classic all remain started. So vitalik, the creator of Ethereum, saw that 50 million dollars remained hacked. He got a little upset at first he was like, let’s add a snippet of code into the blockchain that won’t allow this hacker to spend their money, and if most of the people on the network agreed. They could add this into Ethereum code, but a lot of people had to agree.
Ethereum Classic (ETC) is a cryptocurrency and a decentralized, blockchain-based computing platform. It enables developers to create and deploy smart contracts, self-executing code blocks that perform certain activities depending on predetermined criteria.
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