Ethereum hard fork created a forked version of the Ethereum blockchain Ethereum Classic

Rage Comment : After the implementation of the Ethereum hard fork last week, a forked version of the Ethereum blockchain Ethereum Classic (ETC) currency has emerged, and the funds of this version of the blockchain can never be restored to the investor's account. Since the launch of ETC trading services on the Poloniex platform, the largest exchange for the digital currency Ethereum (ETH), about 20,000 bitcoins worth of ETC have been traded on the network, and the listing value of classic ethers is 0.001 bitcoin or about $0.66. In order to create long-term value, Ethereum Classic developers need to build their own platform to facilitate those users who want to build decentralized applications through the Ethereum platform.

Translation: Nicole

Ethereum’s hard fork last week was intended to compensate investors who lost funds in the DAO incident. Before the fork was implemented, a competing currency, Ethereum Classic (ETC), was created on the blockchain that replicated the platform’s original consensus rules.

Last week it was announced that a project called Ethereum Classic is mining a version of the blockchain in which the funds can never be recovered to the accounts of DAO investors. As observed, the Ethereum Classic blockchain is about 4,000 blocks behind the Ethereum blockchain that is backed by Ethereum’s original developers and community members.

Initially disbanded due to a lack of verbal support, this description should change as digital currency exchanges and wallet providers expand their services to users using the Ethereum Classic blockchain. Increased technical support could create new momentum for the project, which has been operating for several days without the support of miners, exchanges and other key components of open blockchain systems.

Earlier today, Poloniex, the largest exchange for Ether (ETH), the native digital currency of the Ethereum blockchain (sometimes referred to as Ethereum Core or Ethereum One), announced that it has added support for Ethereum Classic (ETC), the native token running on the Ethereum Classic blockchain.

To achieve this goal, Poloniex offers an equal amount of ETC (classic ethers) to traders as the ETH they hold at the time of the fork, effectively providing traders with a new type of asset.

At press time, the outcome of the event has sparked a heated, politicized debate over its implications for the blockchain industry.

In addition to discussions about whether blockchain networks should be “immutable,” or provide a history of transactions that cannot be tampered with, the move has also sparked passions in the bitcoin community, with many community members viewing the implementation of a hard fork on the network as a cautionary tale, as opposed to those who believe such a technology would have little impact.

In the interview, Ethereum Classic project coordinator Arvicco explained in detail the goals and vision of the project, which he believes is more than just a base point in terms of a broader philosophical debate.

The 40-year-old developer who runs the Russian-language blockchain information portal BitNovosti.com explained his project in broad terms, describing it as a full name referendum on the ethereum project.

Arvicco

Arvicco said:

“The structure and governance of Ethereum is unstable and leads to unstable blockchain characteristics. Creating the Ethereum Foundation and all the corporate competition around Ethereum was a huge mistake.”

Those implementing the move say they reject the rationale behind the ethereum hard fork, which Arvicco likened to a “bailout plan” for investors in The DAO.

The decision to implement the hard fork was made after a community vote, but it was still criticized because it did not gain broad representation of Ethereum stakeholders.

The hard fork comes more than a month after the collapse of The DAO, a smart contract-based funding vehicle that raised tens of millions of dollars.

Exchanges add support

However, in order to survive Ethereum Classic (ETC) needs to provide liquidity for the network’s new cryptocurrency, and so far it seems that major exchanges that offer Ether trading are also adding the new token to their listings.

At 19:00 UTC, about 20,000 bitcoins worth of ETC was being traded on the network since the launch of ETC trading on the Poloniex platform, with classic ethers listed at 0.001 bitcoin or about $0.66.

Exchange data revealed ETC’s 24-hour high of 0.01 Bitcoin, or about $6.

A few hours later, Bitfinex representatives confirmed that the Hong Kong exchange would list ETC on Wednesday, but it remains to be seen whether other exchanges will also list ETC.

Kraken’s pre-fork statement indicated that it would accept listings on forked versions of the Ethereum blockchain, but that it has no current plans to do so. The exchange did not immediately respond to a request for comment.

As for the valuation of classic ethers, Arvicco said he saw that the tokens are backed by the underlying technology of Ethereum Classic, the details of which were explained in a blog post.

Arvicco said:

“Our value proposition is that we are working on blockchain that is open, censorship-resistant, and immutable.”

He said Ethereum Classic is mainly used by developers who build decentralized applications through these rules, and now there are a small number of projects supporting information release.

Threat of cyber attacks

Complicating matters, however, is the fact that some members of the ethereum community appear to be taking a hostile stance toward the Ethereum Classic project.

This morning, Chandler Guo, a representative of BW.com, one of the largest Ethereum mining pools, announced via WeChat that his company would use its own hash power to attack the Ethereum Classic network. At the time, Guo said that the move was in response to the listing of digital currency derivatives on the Poloniex platform.

As of press time, it was unclear how or if the initiative would move forward.

Statements from Guo to CoinDesk indicate that he is currently coordinating with other miners to gain a majority stake in the Ethereum Classic blockchain, a move that would undermine the integrity of the transaction history through a 51% attack.

Chandler Guo

He said he currently only has 300 GH/s, but he will still work hard to explore.

When asked why he launched the attack, Guo cited Google's mantra that software projects should not "help the evil."

He said:

“We want to make Ethereum more successful.”

However, Bitbank, which runs the BW.com Ethereum and Bitcoin mining pools, has since distanced itself from the claims.

The company then said:

“Guo’s comments and actions do not represent Bitbank or BW, which want the Ethereum Foundation to provide measures that are in the best interests of the community and Ethereum development.”

Additionally, it appears that other miners will work together to mine their own blockchains for rewards while providing an ever-increasing amount of hashrate for Ethereum Classic.

As of press time, Ether Classic’s hashrate is equivalent to 5.7% of the hashrate of the blockchain that implemented the hard fork.

Developer Support

However, in order to create long-term value, Ethereum Classic developers need to build their own platform to facilitate those users who want to build decentralized applications through the Ethereum platform.

Arvicco said that to date, the project wants to closely mimic the Ethereum Core or Ethereum One blockchain and its processes. Ethereum Classic plans to follow the original roadmap released by ethereum developers, which includes updating its blockchain to support the implementation of hard forks, which can provide additional features.

He said:

“That blockchain is different, and over time the community around ETC will decide if changes are needed.”

He said four developers have agreed to the plan so far and they are currently working on the project in their spare time.

As of press time, at least one major ethereum developer has expressed support for the proposal, or at least one community has opened up about Ethereum Classic’s evaluation.

Gavin Wood, CTO of Original Ethereum and one of its original developers, said on Twitter that Ethereum Classic will be supported by his startup developing the Parity version, which is designed to run blockchains by executing EVM code, censoring transactions, and other functions.

Other ethereum developers, including most notably ethereum founder Vitalik Buterin, have in the past expressed at least tacit support for derivatives created from the project.

Gavin Wood

Earlier this year, he told Backchannel in an interview that he was glad to take a different approach in the community split.

He told the publication:

“Usually I support every fork attempt that comes along, and if there is such a dispute in Ethereum in the future, and Ethereum A goes in one direction and Ethereum B goes in another direction, that would make me very happy.”

Buterin could not be reached for comment by press time.