In July 2016, all trade and exchange platforms, including Changelly, stopped exchanging Ethereum due to hard forking. A serious hacker attack has led to two blockchains and one new cryptocurrency. In this article, we’re gonna tell the difference between Ethereum and Ethereum Classic and explain the reasons for hard forking.
What actually happened?
At that time, Ethereum got some issues with the DAO. A crowdfunding smart-contract platform running on Ethereum was hacked, and tens of millions dollars in Ether were stolen. This case became a breeding ground for Ethereum Foundation to take some measures.
As a result of a long and detailed discussion, the foundation came up with a consensus to replicate the Ethereum blockchain and ‘bail out’ the hacked contract from it. The main idea was to roll back the transaction history prior to the DAO collapse thus making the blockchain intolerant to such violations. Many largest traders, the community, miners, and exchanges, including Changelly, have supported Ethereum at this point.
However, this serious step was largely criticized by the minority of Ethereum stakeholders who were strongly against the hard fork. Contradictions occurred have led to Ethereum Classic, the pre-hardforked version of the Ethereum blockchain. This blockchain is powered by its native coins referred to as now classic Ether (ETC).
ETH & ETC
Now, Ether and Classic Ether are two different cryptos with different blockchains. One fuels the ‘clean’ copy of the Ethereum blockchain striving to eliminate gross violations of policy, whereas the other keeps running on the original one for the sake of equalitarianism the crypto world stands for.
Poloniex, one of the largest Ethereum trade platform, has provided Ethereum stakeholders and ETH traders with ETC equal to the balance of ETH they held by the time of hard forking.