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If it the older version continues to live on, it will result in a split from the new version. Ethereum has such examples, and we shall talk about them in the upcoming paragraphs. Hard forks are usually implemented under extreme conditions. They are rarely planned - most of the time their appearance is due to necessity.
This makes sense because there are usually no legitimate reasons to implement a hard fork in a normally functioning cryptocurrency. The keyword is usually, though - as you'll see soon enough, Ethereum is an exception. Ethereum Classic This is the very first hard fork that Ethereum had. It is also the most controversial of all of the ETH's hard forks. At a certain point in time, the development team behind Ethereum noticed that the decentralized autonomous organization DAO that Ethereum had been using was hacked.
The decision to implement a hard fork that would restore all of the stolen crypto coins was swift, but it also received quite some backlash. Ethereum supporters and enthusiasts divided into two camps. A hard fork would mean that the developers have learned their lesson and are now better prepared for similar future attempts of a hack or a breach.
They saw this change as a violation of the fundamental meaning of "decentralized". This group of people believed that the only way to have a truly decentralized cryptocurrency was to not get involved and simply go by the flow because as soon as the developers start taking action, this would cause a ripple effect and would become a huge statement for the future. What was the outcome? Well, one cryptocurrency split into two. Today, there are still two camps of people in the cryptocurrency community - some think that the developers were right to fix the problem as soon as possible, while others commend the people that stuck to their beliefs and are still supporting Ethereum Classic.
Ether Zero EtherZero is another well-known Ethereum fork. EtherZero aims to improve the transaction rate speeds that occur within the Ethereum network. Furthermore, this Ethereum fork is determined to make these transactions completely free.
It consists of a blockchain ledger, a native cryptocurrency called Ether ETC , and a large ecosystem of applications and services. It allows the applications to run the way they are programmed without downtime or a third party. The network was split into Ethereum classic which is the unaltered and older version and the other new version was the Ethereum.
This spilt voided the transactions of the hackers. Features of Ethereum Classic The validity of ether is done by a blockchain same as other cryptocurrencies. The Ethereum classic runs using accounts and balances in a process called state transitions. The state shows the present balances of all the transactions and it is not stored on the blockchain but rather in a Merkle Patricia tree.