foreword
foreword
During the period from 2022-03-16 to 03-23, $ETC rose from 25.6USD to a maximum of 48.04 USD, an increase of 87.65%, making it one of the few cryptocurrencies that performed well recently. The looming production cuts are clearly an important catalyst for this rally.
With the rapid growth of the cryptocurrency space and the entry of many new players, while scrolling down the list of projects ranked by market capitalization, some noticed a not-low-ranked blockchain called *Ethereum Classic* .
They see a name and logo that resembles the famous Ethereum, and may think that this project with the addition of Classic is trying to cash in on ETHs success. In a market flooded with such projects, and with limited time for user research, many might automatically assume that Ethereum Classic is an Ethereum clone.
Project Description
Project Description
Ethereum Classic is an open source, open, blockchain-based distributed computing platform. It provides a decentralized Turing-complete virtual machine that can execute scripts using a worldwide network of virtual machine nodes.
Users can deposit tokens in cryptocurrency wallets to provide rewards for the computing power of each node participant. In order to prevent the emergence of large transactions aimed at paralyzing the system, Ethereum Classic has a transaction pricing system called Gas, and all transactions of those who are willing to pay higher transaction fees will be prioritized.
Ethereum Classic is a fork of the original Ethereum blockchain. After the hard fork of the network, the old fork is Ethereum Classic, and the new fork continues to be called Ethereum.
1.1 Origin of Ethereum Classic
In the middle of 2016, the Ethereum blockchain, which has been running smoothly for a year, launched a crowdfunding vote for a project. TheDAO is a blockchain company Slock.it announced and launched a 28-day community voting crowdfunding project. The DAO project raised a total of There were more than 12 million Ethereum, which accounted for almost 14% of the number of Ethereum at that time, and was worth more than 150 million US dollars at the time.
After the crowdfunding was completed, an anonymous hacker stole about 3.6 million ether coins through a loophole in TheDAO code. After the matter was confirmed, it immediately sparked heated debate in the cryptocurrency community. But because of the 28-day clause in the smart contract, the hacker couldnt do anything with the stolen 3.6 million ether until that time expired. This gave the Ethereum community time to discuss possible solutions.
📢 Community members came up with three ideas:
A soft fork, in a backwards-compatible way, means that any transaction blocks that involve moving stolen ether will be ignored, followed by a Denial-of-service attack (a type of network attack , in which perpetrators attempt to temporarily or indefinitely interrupt the service of hosts connected to the network, making their targeted users unable to use machines or network resources) not only leads to a huge increase in network costs, but also requires miners to solve many meaningless algorithms.
Hard forks are not backward compatible and cannot be changed once completed. This would return all lost assets to those victims of the DAO attack, while all users would need to implement the new code/rules, otherwise they would no longer be able to interact with the new blockchain or network in any way.
Inaction, drawing on the idea of code is law (code is law), the essence of the blockchain is decentralized trust, which means that it cannot be tampered with after being confirmed by the network. This is the value of the network.
Some members of the ETH community believe that Ethereum should perform a hard fork to re-appropriate stolen funds, and that a hard fork needs to be performed to reverse the illegal transaction. Other members believe that blockchain forks will create moral hazard, which may lead to other hard forks in the future, so the legitimacy of the stolen 3 million ETH must be acknowledged.
Eventually, the network chain was split into two different blockchains due to two different community perspectives:
After receiving the support of more than 85% of the community, the new chain that implemented a hard fork retained the name of Ethereum and has been running smoothly until today.
In the 1,920,000th block, due to the successful execution of the hard fork code, the stolen funds on the new chain were recovered. The Ethereum team designed an unconventional state change in the 1920,000th block, and the original chain Most of the computing power on the network has been transferred to the new chain that supports the hard fork, which is now the Ethereum smart chain.
The inactive old chain was kept and operated under the insistence of some developers and community members, and was also renamed Ethereum Classic.
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Hacking vignette:
As of 2022-03-24, the attacker still has 3.36 million $ETC in his wallet. At the end of 2016, he only transferred 280,000 $ETC and converted it into more than 100 $BTC (now the attacker’s wallet About 50 $BTC left) and donated 2,000 $ETC to the ETC Foundation (relatively stingy) and havent moved since then.
The flow of this DAO fund, in the bull market during this period, the highest value of the fund was over 100 million US dollars, the attacker did not move a penny, completely stagnated, it should be one of the biggest unsolved cases in the field of cryptocurrency so far.
After the DAO incident, there have been a lot of technical analysis and investigations, and there are various signs that the person who can discover this vulnerability and launch an attack is very likely to be among the following people within the Ethereum core development team, and finally they passed the vote."elected"the attacker.
1.2 Team and Foundation
ETCDev is composed of software engineers and experts from different regions and disciplines. They work full-time on many core ETC projects, including ETC client Geth, emerald project Emerald SDK/Platform, SputnikVM virtual machine, and sidechains (Sidechains), they work in the front line of blockchain development and research.
At the New York consensus conference Consensus 2018, the incubator platform Ethereum Classic Labs based on the ETC blockchain was jointly funded by three investment institutions Foxconn Technology Group (referred to as HCM), Digital Finance Group (referred to as DFG) and Digital Currency Group (referred to as DCG). Formally established, the first phase of funding amounted to 50 million U.S. dollars.
1.3 Related Major Events
2015-07-30, Ethereum released the initial version: Vitalik Buterin and the Ethereum Foundation created a Turing-complete smart contract platform based on the blockchain.
2016-04-05, TheDAO project was created: Slock.it designed TheDAO Ethereum contract, and the security audit was done by Dejavu.
On June 17, 2016, assets were stolen: The DAO project on Ethereum was hacked due to system loopholes, and about 30% of the ETH for crowdfunding votes was stolen by hackers. The funds were transferred to the hackers Child DAO contract controlled by the hacker.
On June 21, 2016, the White Hat hacker group was established: The self-proclaimed White Hat hacker group recovered 70% of TheDAO funds, but the remaining 30% needed modification of the protocol layer to get back the funds in the hands of hackers.
2016-07-20, the hard fork was successful: the community launched a heated discussion on the reddit forum, and finally formed a situation of being divided into two. The hard fork was successfully executed, and the first block of Ethereum Classic was created. From then on, any future updates to the Ethereum blockchain will not be compatible with ETC.
2016-08-15, rebuilding the Ethereum Classic network: Through the efforts of the team and community members, the price of $ETC tokens gradually stabilized, and the Ethereum Classic community began to grow.
2017-02-20, ETCDEV team was established: ETCs long-term contributors and volunteers team was renamed as ETCDEV team.
On March 1, 2017, a new monetary policy was adopted: the Ethereum Classic community adopted a fixed-cap monetary policy, similar to Bitcoin, with a limited issuance plan.
2020-03-17, Ethereum Classic production reduction: the block reward was reduced from 4 ETC to 3.2 ETC.
2020-06-02, Ethereum Classic hard fork upgrade: According to the official news of Ethereum Classic (ETC), its hard fork upgrade has an emergency situation, and some node operators failed to upgrade in time on 2020-06-01 after the hard fork upgrade Updating the operating version of the node caused a huge problem in block synchronization and a hard fork occurred.
2020-10, Anti-Attack System: During July-August, due to the low attack cost, Ethereum Classic recently suffered three 51% attacks. In this regard, the ETC blockchain has established a system called MESS, which makes the attack cost very expensive.
2022-02-13, Mystique hard fork was successful: ETC Mystique hard fork was successfully activated at block 14,525,000.
1.4 Status Quo Development
Ecologically speaking, whether it is the richness of applications on the chain, the accumulation of assets or the number of users, it is very difficult for ETC to be compared with the emerging public chains in the market.
According to the statistics of Okey Cloud Chain, in the past week, the number of active addresses of ETC has remained at around 30,000 per day, and the number of transactions per day is about 60,000.
According to the data of the decentralized financial Llama, the top five public chains in the current total lock-up value list are Ethereum, Terra, BNBChain, Avalanche and Solana, while ETC is far behind, ranking more than 80 .
As a smart contract platform that respects code is law, ETC has also tried to increase the use cases of blockchain in recent years. At present, game projects such as Commonwealth Tribes and Aqua Bank have been built on its chain, and DEX projects such as HebeSwap. In addition, there are also multiple NFT projects on the ETC chain, including ETCpunks, Lazy Lions, etc.
1.4.1 Hash computing power
The Ethereum Classic network computing power reflects the overall performance of all miners in the etc network. As of 2022-03-24, the Ethereum Classic network computing power is 27.30 TH/s = 27,298,794,869,938 h/s. A total of 14,785,810 blocks were generated, and the average generation time of each block was 13.1s. The computing power was mainly distributed on the east and west coasts of Europe and North America.
1.4.2 Grayscale position data change chart
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ETC Token Production Reduction Mechanism
On December 11, 2017, the ECIP 1017 document was released, which re-limited the issuance of ETC: when the block height reaches 5,000,000, the block reward will be reduced by 20%, and thereafter every 5,000,000 blocks will be reduced by another 20%. Due to the change in the reward rate of $ETC, the estimated total supply is about 210 million $ETC, and the maximum supply will not exceed 230 million $ETC.
According to statistics, Ethereum Classic will reach Bitcoin-level inflation in 2032.
The last production cut of Ethereum Classic was on 2020-03-17, and the block reward was reduced from 4 $ETC to 3.2 $ETC. Before that production reduction, the 3.12 black swan event occurred in the cryptocurrency asset market, and $ETC fell from a maximum of 13.2 US dollars to a minimum of 3.1 US dollars within 40 days before the production reduction.
According to the data, ETC is expected to reduce block rewards in 32 days, and the Ethereum Classic network is expected to break through 15,000,000 blocks and enter the fourth era of the 5M20 emission schedule. At that time, the ETC block reward will be reduced from 3.2 $ETC to 2.56 $ETC, a reduction of about 20%.
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ETC or ETH
3.1 Consensus Mechanism
Changes in the consensus mechanism lead to the transfer of miners. As we all know, in the real world, many users buy a large number of graphics cards to participate in ETH mining. In fact, the premise of their mining is based on the PoW (Proof of Work) consensus layer of Ethereum, but with the development of emerging consensus in the currency circle in recent years, more and more people participate in mining , the disadvantages of the PoW mechanism are exposed.
The goal of ETH2.0 is to change the consensus, from the main problem of energy consumption and low efficiency to the PoS mechanism with higher energy efficiency and lower energy consumption, and it can also effectively prevent the classic 51 in the blockchain. % Attack vulnerability issues.
However, when Ethereum changes the consensus level, miners must move from ETH to other mining networks. From the perspective of working principle and consensus level, ETC is the most suitable for accessing Ethereum miners, and can be executed through computing power such as graphics cards. PoW mining.
Xu Kang, head of ETC’s Asia-Pacific region, once said that ETH’s computing power will flow out to other chains during the consensus conversion process, and ETC is the most suitable PoW blockchain to undertake Ethereum’s computing power.
Currently, ETC has released a guideline for computing power migration on its official blog, expressing its welcome to deprived Ethash miners. And pointed out that ETC has the ability to absorb most of the abandoned Ethash computing power. However, the mining version that ETC runs is a modified version of Ethash called ETChash. If ETH miners migrate to ETC, they need a firmware upgrade.
One view is that ETC is a purer decentralized system compared to ETH, so it will win in the end. Another point of view is that ETH is supported by the majority of people and the core developer Vitalik, etc. ETH represents the future.
Summarize
Summarize
The Ethereum Foundation is determined to switch to PoS (Proof of Stake) named Casper, while the ETC community believes that according to the technical characteristics of POS, the rich may become richer and the poor poorer in the future, bringing users Institutional thresholds are unacceptable to the core values of the ETC community, and ETC will continue to adhere to POW. This is also one of the keys to the transformation of the two networks.
In fact, for now, for ETC, whether it is adding ETHs computing power or reducing production, it is only a catalyst, not the reason for determining the development of the ecology. Although the current network ecology is relatively complete and includes projects on various tracks, the assets There is still a big gap between the accumulation of precipitation and the number of users and the emerging public chain, because the reduction of production only reduces the supply and does not create demand.
References
References
Certain statements involved in this article may be assumptions about future expectations and other forward-looking opinions, and known and unknown risks and uncertainties may cause actual results, performance or events to be different from opinions and assumptions in the statements There are substantial differences.
The above content analysis only provides reference information, and does not serve as the basis for investment decisions. Please do not make any investment decisions based on this report. The report author is not responsible for the users investment results.
Reports have been prepared as of the date indicated and as subsequent market or economic conditions may change, the contents of the report do not necessarily reflect these changes. Graphs, charts and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids should be used to make investment decisions. It is not intended to assist anyone in making an investment decision, and no graph, chart or other visual aid can capture all of the factors and variables necessary to make such a decision.
Certain statements involved in this article may be assumptions about future expectations and other forward-looking opinions, and known and unknown risks and uncertainties may cause actual results, performance or events to be different from opinions and assumptions in the statements There are substantial differences.
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This article is copyrighted by D-Tiger Research Institute. Without permission, any organization or individual shall not reprint, copy or redistribute others, etc.
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