Ethereum and Ethereum Classic are platforms over which N no of applications can be build where as bitcoin is a currency application of blockchain. Ethereum Classic came into existence as a result of the DAO hard-fork.
Hi guys and welcome to this Friday edition of Crypto Tips. Today we are going to dive into the world of Ethereum, the Dow, and either classic. So first of all, Ether is the cryptocurrency of a network that is called Ethereum. Now Ethereum is both a software platform and also a programming language and Ethereum is a open source blockchain that allows for smart contracts and decentralized applications also known as DEPS to be built by anyone.
This past summer a little thing called the Dow was created and through the initial crowdfunding this project was able to raise over 150 million dollars worth of Ether. Now the investors in return were given tokens that would allow them to vote on projects for new smart contracts and DEPS. Although this was a very promising new development for the crypto world some speculators thought that the Dow had bitten off more than it could chew and then the Dow attack hit. Some call the attack malicious others call it intelligent.
This attacker found a loophole in the code, took advantage of it and collected a nice sum of $60 million. Of course a situation such as this would put Vitalik Buterin, co-founder of Ethereum, and his team in a precarious position. They had to decide whether to hard fork and reverse the events that led to the loss of money or to let the attacker get away with it for the sake of a lesson learned and in turn ultimately strengthen the Ethereum protocols. Keep in mind that not every Ether holder was invested in the Dow yet the hard fork would affect everyone who was invested in Ether.
In the end they chose to hard fork thus replenishing the funds lost and abandoning the past blockchain. Let me remind you that the Ethereum network is open sourced meaning that enough coders and programmers and miners work together against a hard fork they could carry on the original blockchain while the hard fork led the others down a different path. I'm sure that Vitalik assumed most everyone would be on board for the hard fork. He probably didn't think a solid group of coders would rebel and keep the original chain alive but in fact that's just what happened and that's how Ethereum Classic came into existence.
The concept behind the Dow was a good one allowing people to invest in and vote for upcoming projects is a great way for startups to gain capital and for investors to get in early all while at the same time allowing for collaboration review and evaluation of the new projects. The fact that this particular Dow failed doesn't mean that other better planned Dows in the future won't be successful. Since I was holding either at the time of the hard fork Ethereum Classic was then allocated into my account so now I am happily hedged against both coins. Both of these coins have also seen pretty good gains the past few days with Ether finally back in the $8 range and either classic slowly making its way towards $2.
Some say that if one of these coins fails the other will continue. Both of these coins are relatively inexpensive to get into especially compared to Bitcoin so if that's something you're interested in I suggest getting into both just to hedge one against the other and if you've already done so I know that you're enjoying the boost and price of both of those coins so that's it for today's episode of Crypto Tips. If you like what you see here give this video a like share it with your friends and see what they think about the Ethereum hard fork and don't forget to subscribe to Crypto Tips to get your weekly fix of all things Crypto.