The DAO: The Turning Point for Ethereum ClassicTo understand when the concept of Ethereum Classic was first proposed, we must first revisit the pivotal event known as The DAO hack in 2016.
Launched in April 2016, The DAO (Decentralized Autonomous Organization) was an ambitious venture capital fund operating entirely on the Ethereum blockchain through smart contracts.
It garnered widespread attention and successfully raised over $150 million worth of ETH from investors around the globe.
However, on June 17, 2016, a hacker exploited a vulnerability in The DAO’s code, siphoning off 3.6 million ETH (valued at approximately $50 million at the time).
This breach sent shockwaves through the Ethereum community, sparking urgent debates on how to address the crisis.
The Hard Fork Proposal: The Birth of Ethereum ClassicIn response to The DAO hack, the Ethereum community faced a defining decision. To recover the stolen funds, a proposal was introduced to execute a hard fork of the Ethereum blockchain.
This hard fork would effectively reverse the hack by rolling the blockchain back to a state prior to the exploit, enabling investors to reclaim their lost ETH.
While many supported this solution, emphasizing the importance of protecting investors and maintaining trust in the network, a significant faction within the community strongly opposed it.
This group championed the principle of blockchain immutability—the belief that once data is recorded on the blockchain, it should remain unaltered, regardless of the consequences.
They argued that intervening in the blockchain contradicted the foundational ethos of decentralization and the concept that "code is law."
During this heated debate in July 2016, the concept of Ethereum Classic was first proposed.
The opposing faction chose to continue using the original Ethereum blockchain without implementing the hard fork, preserving the history of The DAO hack as an unchangeable part of the blockchain’s record.
This decision marked the creation of Ethereum Classic, symbolizing a commitment to immutability and the original vision of the Ethereum network.
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