In this article, you will learn why did Ethereum fork. Blockchain forks are essentially a split in the blockchain network. The network is an open source software, and the code is freely available. This means that anyone can propose improvements and change the code. The option to experiment on open source software is a fundamental part of cryptocurrencies, and also facilitates software updates to the blockchain.
What are Blockchain Forks?
Forks occur when the software of different miners become misaligned. It's up to miners to decide which blockchain to continue using. If there isn't an unanimous decision, then this can result in the creation of two versions of the blockchain. There can be periods of increased price volatility around such events.
Forks work by introducing changes to the software protocol of the blockchain. They are often associated with the creation of new tokens. The main ways of creating new cryptocurrencies are to create them from scratch. Or, to 'fork' the existing cryptocurrency blockchain.
There are many reasons why blockchains undergo hard forks and divide themselves into separate blockchains. Sometimes forks are the result of technological upgrades. Other forks result from deep community disagreements on proposed protocol changes which ultimately split the project and its backers into irreconcilable factions. Such protocol Changes can arise from forward-looking efforts to improve existing functionalities, or they can arise in reaction to damage caused by bugs and hacks. The latter instance resulted in the Ethereum fork, which led to the creation of the Ethereum Classic (ETC) blockchain.
Why did Ethereum Fork?
In 2016, an application on the Ethereum blockchain (known as The DAO) was hacked, leading to the theft of around 3.6 million ether (ETH) — worth around $50 million USD in 2016 — which subsequently rose to be worth billions of dollars. To Further contextualize the severity of this hack, there were around 72 million ETH in circulation at the time, so the hackers stole around 5% of all ETH in existence.
To erase the hack from Ethereum's ledger and return the money to its original owners, Ethereum core developers chose to implement a hard fork. The newly created ledger, which reversed the hack and returned the stolen ether, became the “main” Ethereum blockchain, and the original version of the ledger was renamed Ethereum Classic as a parallel network that was not compatible with the new main branch. A majority of users, especially victims of the hack, preferred the version of Ethereum that erased the hack. However, some users who Viewed immutability as paramount chose to remain faithful to the original ledger, Ethereum Classic.
Structure of Ethereum Classic
The Ethereum Classic protocol is essentially a clone of the original Ethereum protocol. Both Ethereum Classic and Ethereum are smart contract platforms that allow users to build decentralized applications (dApps) on their respective blockchains, and they remain similar from a general functional, perspective has subsequently developed a considerably wider array of functionalities over time. The chains are identical up until block 1,920,000 (where the attack occurred). It is only after this block that they diverge. As a result, significant updates to the Ethereum after protocol (including Ethereum 2.0) are not reflected in the Ethereum Classic protocol, and vice versa.
Bottom Line
Ethereum Classic and Ethereum were born after the Ethereum network was forked. So, this is about why did Ethereum fork and structure of Ethereum Classic.
