Ever since the hard fork after the attack on the DAO, Ethereum has been the better option of the Ethereum versions of crypto coins. Despite the fact that Ethereum Classic ETC is the original version of Ethereum, investors and traders opted to shift to the newer version, Ethereum ETH, leaving the Ethereum Classic struggling to try and pay its users the stolen funds.
What led to the hard fork?
The Ethereum ecosystem is based on smart contracts. This means that users are required to use automated contracts that ensure that the terms of all the contracts are facilitated and enforced.
As part of their smart contract project, the Ethereum ecosystem decided to introduce the Decentralized Autonomous Organization (DAO). The DAO was a revolutionizing factor for the Ethereum Ecosystem since it targeted future DAPPs with a =n aim of decentralizing all venture capital funds.
The DAO required that any prospective user should buy DAO Tokens using Ether so as to get into the DAO system. As a DAO token holder, the user would then get an opportunity to vote for the DAPPs once they were whitelisted and stamped. A 20% approval of the DAPPs meant that they would be funded to start.
The ease of use and transparency involved in the DAO system got the attention of most crypto investors and many leaped in to have a share of the system. Within no time, the DAO had over one hundred and fifty dollars of Ether.
However, there was a little problem in the process of releasing the DAO once the user felt it’s time to get out. It was required that once the user released the DAO Tokens and exchanged them back for Ether, the user had to hold on for about 28 days before using the Ether again. This provided a chance for hackers to get in and get in with a thud.
That is when one of the hackers got access to the DAO system and went away with a tune of 50 million Dollars leaving the DAO users as well as Ethereum users very frustrated and angry about the system developers for lacking to put in place sufficient security measures.
The attack on the DAO first sent the value of Ether crippling from around $20 to around $13 almost instantly sending shockwaves to investors.
The thing that seemed promising was the fact that by the time the theft was being recognised, the hacker was yet to access his/her stolen funds since he/she also had to wait for the 28 days. That is when people voted for a soft fork, which never worked.
That is when it was decided that a hard fork was necessary to try and refund the money that had been stolen to everyone whose funds was affected. The Ethereum ETH sole function was to be used to refund all the stolen funds to the users. For every 100 DAO Tokens lost, the user was to receive 1 ETH.
However, not everyone was for the idea leading to some opting to remain in the old Ethereum ecosystem which was named Ethereum Classic ETC. But it seems that the Ethereum ETH was the better option. Ethereum Classic is since suffering and its value is yet to rise to the heights of Ethereum.