Ethereum Classic (ETC) is an open source decentralized cryptocurrency platform that is based on blockchain technology. This network is capable of handling smart contracts. Ethereum Classic was created in 2016 as a result of the famous hack of a smart contract called The DAO operating on the Ethereum blockchain, from which a lot of ETH was stolen. The original blockchain was then split into two separate chains, and most users chose to reverse the break-in and return the stolen funds.

This split revealed philosophical divisions in the Ethereum community. Based on the "Code is Law" principle, some developers and miners believed that DAO investors should feel the consequences of investing in a flawed project and lose their ETH. However, most of the Ethereum community decided to remove the effects of the breach to The DAO contract, which led to a refund for investors.