What is Ethereum Classic (ETC)?

Ethereum Classic (ETC) is a cryptocurrency platform that emerged from the split in the Ethereum community following the DAO attack in 2016, maintaining the original Ethereum blockchain. In other words, Ethereum Classic is the pre-fork state of the Ethereum network and aims to preserve the blockchain's history unchanged by embracing the philosophy of "code is law." This open-source platform, which continues to support smart contracts, operates with a Proof of Work consensus mechanism, allowing Ethereum Classic coins to be mined. In this guide, we will address frequently asked questions such as "What is Ethereum Classic? When did it come about? How did it come about? Who founded it? What is the purpose of ETC?"

Definition and Origins of Ethereum Classic

Ethereum Classic is the original fork of the Ethereum network following the 2016 attack on the DAO smart contract. In this massive attack, which took place in June 2016, a hacker exploited a vulnerability in The DAO to transfer approximately 3.6 million ETH (approximately $50 million) to his own account. This incident created a deep divide within the Ethereum community. While most advocated for a blockchain rollback (reversing transactions through a hard fork) to return the stolen funds, others opposed it because they believed it violated the blockchain's immutability principle.

As a result, in July 2016, the Ethereum network split in two: The new chain, supported by the majority, reversed the effects of the attack and became Ethereum (ETH); the original, unforked chain, maintained by the minority, continued as Ethereum Classic (ETC). Ethereum Classic, adhering to the principle of "Code is Law," refused to erase the consequences of the hack from the blockchain records and preserved history intact. In this respect, Ethereum Classic emerged as an ideologically distinct branch of Ethereum. In short, the emergence of Ethereum Classic is a product of the community's efforts to protect the original chain after the DAO attack, as they sought to adhere to the principles of decentralization and immutability.

The History of Ethereum Classic: Major Milestones

The history of Ethereum Classic dates back to the inception of the Ethereum project and the critical events that followed. Below are some notable milestones in the history of Ethereum Classic:

• 2015: The Ethereum mainnet was released. Launched on July 30, 2015, with its "Frontier" version, the Ethereum platform emerged as an innovative blockchain supporting smart contracts under the leadership of figures such as Vitalik Buterin and Gavin Wood. Ethereum Classic's roots naturally lie in this first Ethereum chain.
• 2016: The DAO attack and hard fork. As mentioned above, approximately $50 million worth of Ether was stolen as a result of the DAO hack in June 2016. Following the voting and discussions held in July 2016, the Ethereum community split in two. With the hard fork that took place on July 20, 2016, the chain to which the stolen funds were returned was renamed Ethereum (ETH), while the original chain, which did not undergo the hard fork, was named Ethereum Classic (ETC). This split marked a significant milestone in crypto history. The actual release date of Ethereum Classic is July 2016.
• 2017 - 2020: The independence of the ETC developer community. After the fork, Ethereum Classic began to chart its own course without the support of the Ethereum Foundation. For example, the "difficulty bomb" mechanism, designed by Ethereum for the future transition to Proof of Stake, was removed from the Ethereum Classic network. The "Die Hard" update in early 2017 postponed the difficulty bomb, but a fork in 2018 completely neutralized it, and the ETC network declared it would permanently remain on Proof of Work consensus. During this period, Ethereum Classic also reviewed its monetary policy, limiting the maximum supply to approximately 210 million ETC in December 2017 (ECIP-1017 update). Developers adapted some of Ethereum's innovations to the ETC network with updates such as Atlantis, Agharta, and Phoenix in 2019-2020, striving to keep the network current. These processes demonstrated that Ethereum Classic had established its own technical community and governance independent of Ethereum.
• 2020: Network security issues and consecutive 51% attacks. The Ethereum Classic network suffered several 51% attacks in 2020. Malicious miners leased sufficient hashing power to gain majority control of the network and execute double-spend transactions. The multiple 51% attacks, occurring within two weeks of each other in August 2020, posed a significant security concern for the ETC network. As a result of these attacks, exchanges were cautious about ETC transactions for a while, and developers took steps to strengthen the network. For example, the Ethash mining algorithm was modified with the "Thanos (ETChash) update," aiming to make it more difficult to share hashing power with Ethereum.

• 2022: Ethereum's transition to PoS and the rise of Ethereum Classic. In September 2022, the Ethereum mainnet switched to Proof of Stake consensus with "The Merge" update. Following this development, Ethereum Classic emerged as the largest Proof of Work-based smart contract platform capable of processing transactions. While Ethereum miners sought alternatives for their devices with the transition to PoS, some shifted their hashing power to the Ethereum Classic network. This significantly increased the total processing power (hashrate) of the ETC network, and its security improved significantly. After 2022, Ethereum Classic became one of the largest Proof of Work cryptocurrencies, along with Bitcoin.
• 2024: Spiral and 5M20 Era 5 update. In February 2024, the Ethereum Classic network successfully implemented a protocol update called Spiral. In May of the same year, 5M20 Era 5 (a 20% reduction in the block reward for block 20 million) went into effect. This was a significant step in supporting ETC's deflationary supply policy and reinforced the limited supply of the coin.
• 2024: ETC Cooperative structures and PoW Summit. ETC Cooperative, which supports the Ethereum Classic community, announced the 2024 POW Summit and continued to provide resources for the platform's development. Additionally, some personnel changes were announced in the management and organizational structure at the end of the year.
• 2025: Hashrate increase. ETChash network security is strengthening. Ethereum Classic continues to mine with the ETChash algorithm, and by 2025, the network's total hashrate exceeded 300 TH/s. This represents a significant increase in network security, comparable to Ethereum's hash rate during the DeFi era. Meanwhile, as of September 2025, the ETC price hovered around $20.

Why Is Ethereum Classic Valuable?

Several key features and principles make Ethereum Classic valuable. This value stems not only from technical details but also from the philosophy behind the project. Its commitment to the "code is law" principle, coupled with its secure and transparent Proof of Work-based operation, are among the elements that distinguish Ethereum Classic from other networks. Furthermore, its continuation of the original Ethereum chain, its limited supply, and its support for smart contracts give ETC both historical and practical significance. Generally, we can consider the following points regarding ETC's value:

Being the Original Ethereum Chain

Ethereum Classic is a historical blockchain that continues its path without reverting any transaction history. Because it retains the original ledgers after the 2016 fork, some users consider it the "real Ethereum." This historical continuity adds ideological value to the project and attracts investors.

Proof of Work-based Mining Model

The ETC network, like Bitcoin, is secured by Proof of Work (PoW). Miners verify blocks of transactions using the Ethash algorithm and receive rewards in return. With the Ethereum mainnet now transitioning to PoS, Ethereum Classic has become a uniquely positioned mining platform for major cryptocurrencies. This fixed-supply PoW model offers a Bitcoin-style approach to digital scarcity and security, making it particularly appealing to investors focused on decentralization and security.

Decentralization and Immutability

Ethereum Classic, due to its founding philosophy, distances itself from the intervention of central authorities. As seen in the DAO, it advocated that smart contract code should not be altered "regardless of the consequences." This immutability principle is crucial, as it also underscores the blockchain's foundation of trust and transparency. Furthermore, because the project is not governed by a large foundation or leader but rather operates with a community focus, it strives to maintain as decentralized a structure as possible. In this respect, Ethereum Classic is valuable to users who believe that "code is law."

Continued smart contract and dApp support

Ethereum Classic maintains compatibility with the Ethereum Virtual Machine (EVM) because it maintains the original Ethereum codebase. This means that smart contracts and decentralized applications (dApps) that can run on Ethereum can also run on Ethereum Classic at a basic level. While the developer ecosystem is not as large as Ethereum's, token issuance, decentralized finance (DeFi) protocols, and similar applications continue to be possible on the network. This allows ETC to maintain its value as a platform with a wide range of uses.

Technical Specifications

The main technical features and parameters of the Ethereum Classic (ETC) network can be summarized as follows:

• Consensus mechanism: Proof of Work. Ethereum Classic uses the PoW algorithm called Ethash, and miners verify transactions on the network using GPUs or ASICs.
• Token (cryptocurrency): The Ether Classic token, symbolized by the ETC symbol, is the native cryptocurrency of the Ethereum Classic network. The currency of Ethereum Classic is traded with the ticker symbol ETC, equivalent to "ETH" in Ethereum.
• Total supply: Limited to approximately 210 million ETC. A 2017 decision set Ethereum Classic's maximum supply at approximately 210.7 million. The fact that no new coins will be issued beyond this amount makes ETC similar to Bitcoin in terms of inflation. The current circulating supply is around 150 million as of 2024. Block rewards will be reduced by 20% every 5 million blocks (fifthening mechanism), eventually reaching a fixed supply.

• Smart contract support: Thanks to its Ethereum-compatible EVM infrastructure, smart contracts can be run. This means that Solidity-based smart contracts on Ethereum can also be run on Ethereum Classic with the necessary adjustments. This allows decentralized applications (dApps) to run on the ETC network.
• Block time: Average 13–15 seconds. The time it takes to create a new block on the Ethereum Classic blockchain is approximately 15 seconds, similar to Ethereum's legacy PoW era. This allows the network to maintain a transaction confirmation rate of approximately 10–20 transactions per second (Ethereum Classic faces similar scalability limitations to Ethereum).
• Use cases: The Ethereum Classic network can be used for value transfer, smart contracts, and decentralized applications. The ETC token is used to pay transaction fees (gas fees) on the network and can be considered a store of value. Developers can leverage Ethereum Classic's EVM compatibility to develop applications such as issuing tokens (e.g., ERC-20-like tokens), creating NFTs, or simple DeFi protocols. However, Ethereum Classic's ecosystem is more limited in size than its parent Ethereum counterpart.

In summary, Ethereum Classic's value stems largely from the combination of its ideological stance (fidelity to the original chain and immutability) and its technical features (PoW mining, limited supply, smart contract capabilities). Its ability to offer a different path than Ethereum's current vision may be particularly appealing to investors who want to remain in the Ethereum ecosystem but are looking for something different.

Who is the Founder of Ethereum Classic?

Ethereum Classic doesn't have a single founder. It began life as an open-source blockchain maintained by a community of people who split from Ethereum's core team and disagreed with the fork decision. The original Ethereum project was founded by Vitalik Buterin and Gavin Wood, and Ethereum was launched in 2015 under their leadership. However, following the DAO crisis in 2016, Buterin and the majority of his team updated Ethereum with a hard fork, while Ethereum Classic was adopted by independent developers and miners who left this team. Therefore, it's more accurate to describe Ethereum Classic as a community movement that initially remained committed to its mission, rather than a single founder.

After the fork, Vitalik Buterin and the Ethereum Foundation continued to focus on the Ethereum (ETH) chain, while Ethereum Classic established its own volunteer ecosystem. Today, the ETC network is developed by non-profit organizations (such as groups like the Ethereum Classic Cooperative) and independent contributors. The Ethereum Classic protocol, managed by an open-source community, has no CEO, president, or official leader.

Frequently Asked Questions (FAQ)

We've covered much of what you need to know about this established altcoin project. However, despite all this, you may still have some questions. Below are some frequently asked questions and their answers:

• When and why did Ethereum Classic emerge?: Ethereum Classic emerged in July 2016 following an attack on a smart contract called The DAO. To recover the funds stolen in this attack, the majority of the Ethereum community chose to reclaim the blockchain and perform a hard fork; however, some members disagreed with this decision. As a result of this disagreement, the original chain, which did not implement the hard fork, split off under the name Ethereum Classic and continued on its path with the principle of "code is law." In short, ETC was born from the split of Ethereum in 2016.
• What is the difference between Ethereum Classic and Ethereum?: While Ethereum Classic (ETC) and Ethereum (ETH) share the same origins, there are both technical and philosophical differences between them. The most significant difference is the decision made after the 2016 DAO attack: Ethereum reversed the effects of the attack by hard forking, while Ethereum Classic continued the original chain unchanged. Therefore, Ethereum Classic maintained its Proof of Work consensus, while Ethereum gradually transitioned to Proof of Stake. Furthermore, while Ethereum's token supply is unlimited, Ethereum Classic has a total supply limited to approximately 210 million. In short, ETH has a more popular and developed ecosystem, while ETC maintains the original structure with a more conservative approach.
• Who founded Ethereum Classic?: Ethereum Classic has no single founder; the project was started collectively by a segment of the Ethereum community. Ethereum founders Vitalik Buterin, Gavin Wood, and others created Ethereum in 2015, but after the 2016 fork, Ethereum Classic has been built and maintained by independent developers and miners who did not participate in the fork decision. Today, the ETC network is governed by the open-source community (i.e., development teams and volunteer contributors guide the project), not by a formal company or CEO. This makes Ethereum Classic a truly decentralized project.
• How does Ethereum Classic work?: Ethereum Classic is technically based on the original version of Ethereum. The network operates using a Proof of Work mechanism: Miners solve mathematical problems to validate transactions and add them to blocks, receiving ETC rewards in return. This process ensures the security of the network. Smart contracts can be run on the Ethereum Classic network using the EVM, allowing the network to function like a distributed computer. In other words, the ETC network serves both as a ledger recording cryptocurrency transfers and as a platform where developers can run code. Users can send and receive ETC through wallets, interact with smart contracts, and use dApps.
• Is Ethereum Classic limited, and what is its maximum supply?: Yes, Ethereum Classic's supply is limited. The maximum ETC supply is set at 210.7 million coins. This decision was implemented with an update in December 2017 and places Ethereum Classic in the category of limited-supply cryptocurrencies like Bitcoin. The current amount of ETC in circulation is approximately 150 million, and the minting of new coins is gradually slowing down, with a model where the block reward is reduced by 20% every 5 million blocks (fifthening). The final coin supply will reach around 210 million, and ETC will not be produced above this limit.
• Is Ethereum Classic secure?: Ethereum Classic is a blockchain whose security relies on Proof of Work mining. The network has experienced security issues at certain points in its history, particularly a series of 51% attacks in 2020, which raised concerns. Following these attacks, developers implemented some measures and began efforts to increase the network's hash rate. After Ethereum's transition to PoS in 2022, ETC's hash rate increased significantly, and the network became more secure with the participation of more miners. However, Ethereum Classic still doesn't have as large a mining network as Ethereum (ETH). Therefore, greater caution may be necessary in terms of security. As a result, the ETC network is currently considered reasonably secure and maintained by a large community, but given past events, it's important for users to monitor network security.

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