Ethereum network is the latest addition to the blockchain family but the ride hasn't always been as smooth as it was to its counterparts. In concept it is the same peer-to-peer proof-of-work based platform which aim is to create decentralized applications but is built on the script that is memory-based and thus allows much faster creation of blocks than with other cryptocurrencies. Huge hack attack that happened during one of the updates resulted in network splitting in two and we are dedicating our following article to share some hindsight into what went down and what is the difference in between these two branches. Reason behind the split? Everything started with popular crowdfunding project The DAO in which $150 million in Ether was raised during the public crowd sale. Anyone who had any Ether on their hands was at liberty to participate for your ether you received voting tokens in exchange. This would allow the investors to vote and decide democratically how The DAO should operate with its funds. This didn't work out as smooth as planned since the moment when votes started to held, The DAO was hacked or compromised in some other way which resulted in hacker(s) using valid action in the code to move all of the funds to the DAO s/he controlled. That spiked a controversial debate in how this attack could be reversed and after a vote in which majority agreed to change the Ethereum code in order to return the funds to the investors, it was implemented. Ethereum Classic As we mentioned majority agreed on the change but there was a small group of developers who were not all hands down to this change with the reasoning that in order to provide sound history of transactions, a blockchain has to remain censorship resistant and tamper proof. While most of them moved on to the new strain of the blockchain then above listed group remained to found blocks on the old blockchain which was called Ethereum Classic and where funds were never returned to the investors but remained in the hands of the attacker. Ethereum in contrast is the network where this transaction was reversed. Ethereum With the decision of reversing transaction Ethereum end up finding itself under a slight fire from the Ethereum Foundation that followed with the release of crypto manifesto which outlines the rules of what blockchain should and should not do. In nutshell any transaction, hacked or not shall remain as it is and never reversed since that is the whole goal of the blockchain's - TAMPER PROOF! If you allow network to reverse a transaction then effectively it isn't tamper proof anymore. Debate can be done on the morality of this line of thinking but we leave this to any of you to decide. So far Ethereum has been growing in popularity and interest in more developers who find ideas for different applications to be built on this network how ever some parts of the community are wondering what if this should happen again and Ethereum decides to reverse the transaction again, would that result in another split? We hope that you have enjoyed reading our explanations into what is the difference in between these two networks that have been conceived from the same blockchain.
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Explanation to how the Ethereum network end up in the state that it is now?