Understanding Bitcoin-Ethereum Versus Ethereum Classic-Lesson 16 :
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What is Ethereum. Ethereum at http://www.blockchaintechnologies.com/blockchain-definition.
Ethereum allows the execution of computer code for smart contracts across all of its nodes and recording the execution results in the blockchain. The idea is that a digital contract can be executed and is tamper-proof due to the consensus rules around the blockchain, provided at least 51% of the nodes are honest, tampering with the result cannot happen. It allows sending and receiving of funds in a functionally similar way to Bitcoin using public/private key pairs. This has many potential uses, from basic smart contracts, to the area of being able to digitally vote in political elections, due to the tamper proof nature of the blockchain when secured to a high degree on separate nodes.
Ethereum has its own Turing-complete programming language for smart contracts. Ethereum has gone through many developments over the course of its life since its introduction. A major development is the ‘forking’ at https://bitconnect.co/bitcoin-news/164/ethereums-the-dao-easily-exceeds-crowdfunding-expectations/ and around 12% of all ether at the time was tied in this contract.
A hacker discovered a flaw in this contracts code to allow draining of the ether into a child contract, by which they would cash out after some time had elapsed. Due to the substantial investment in the DAO at https://bitconnect.co/bitcoin-news/164/ethereums-the-dao-easily-exceeds-crowdfunding-expectations/ running into the multi millions, all of which stood to be lost to a hacker, the community was divided on the solution.
Some wanted to leave the network running as it was, their nodes would become the Ethereum Classic coin. At https://ethereumclassic.github.io/.
The network had not malfunctioned and in their opinion, the blockchain should be left alone and not edited or altered in any way. A note that most hashing power is run by very few nodes, as many people mine in mining pools, so a large proportion of miner’s mine on a single node.
Most full mining nodes chose the second option, where there was a divide in opinion. To update their nodes to ‘hard fork’ the block chain, that is change the consensus rules. These new consensus rules would prevent the hacker taking money out and move all the stolen funds to a ‘holding wallet’ to return them to the investors. This required most of the network nodes to agree to do this to allow the changing of events that had happened on the chain.
This approach didn’t modify the blockchain much but made adjustments to the code of nodes to bar access to the hacker of the funds and to move them to the holding wallet. Nodes forked at over 80% consensus, although the community and many investors are divided. Many feel it was the right thing, but others feel that modifying the blockchain in such a way so as to change a record of what happened damages the credibility of ether.
Ethereum Classic.
Ethereum Classic maintains the original Ethereum blockchain at https://mypr.co.za/understanding-bitcoin-how-is-the-price-of-cryptocurrency-defined-lesson-15/ .
From: Clyde Thorburn
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