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Charlie Lee: Litecoin can play major role in cryptocurrency world

The creator of Litecoin Charlie Lee explained why he considered an activation of SegWit Bitcoin network’s protocol important and expressed hisconviction that his own brainchild could play a major role in the way out of this impasse, in which developers and miners had found themselves in their discussions on scalability.

As Charlie Lee recalled in his blog, he had startedadvocating for the SegWit’s activation both in the Bitcoin network and Litecoin recently, and the only reason he had not done it before was his unwillingness to waste energy until a code was not finished. However, now that SegWit has been included in the Bitcoin protocol and requires activation, he believes that the time has come to identify position more actively.

ʺPerhaps, you may wonder why I am pushing for SegWit, while Litecoin does not have such problem as a block size. It is true, but SegWit is not just a block scaling solution. I would say the scalability is a side advantage of SegWit. In the first place, it addresses an issue of transaction malleability and allows Lighting Network to be built on top of Litecoin,ʺ Charlie Lee writes.

According to him, there is an opinion that the implementation of the LN in Bitcoin will deprive Litecoin of benefits, because instantaneous transactions will make it useless for users.

ʺMy intuition tells me that it is not true. Even with the LN, Bitcoin will not be able to meet the needs of all people in the world. By my calculations, 1MB block can serve 500 million users in the Ln and SegWit Bitcoin systems. LN nodes will charge a fee for LN transactions going through them and that fee will be relative to the Bitcoin network fee. Therefore, LN Bitcoin transactions will be more expensive than Litecoin.ʺ

 

 
Charlie Lee is insisting on the earliest possible activation of SegWit.
 
For that reason, Charlie Lee believes that a scheme, in which LN transactions are made through the Litecoin blockchain and returned to the Bitcoin’s blockchain, will be cost-efficient. It is technically possible to implement since the LN can run on multiple blockchains simultaneously.
 
ʺThink of it being two highways: Today, Bitcoin is packed full of cars and Litecoin is empty. Even with Bitcoin packed, the cars are not coming to use the Litecoin highway today because it’s not connected and it’s inconvenient (centralized exchanges and slow on-chain transfers) to go across. LN will build bridges over the highways,ʺ Charlie Lee said.
 
Also, he believes that the convenience and the cheaper tolls on Litecoin highway will convince cars to cross over and use Litecoin, but he does not know for sure until both are built.
 
Charlie Lee calls atomic cross-chain transactions via LNanother benefit of interoperability: two users can trade BTC and LTC instantaneous and without risk. In turn, it makes possible an emergence of efficient decentralized exchanges and allow paying LTC and exchange them instantly through a LN exchange node and send BTC to the merchant. That is basically decentralized ShapeShift.
 
He is convinced that SegWit and LN provide many opportunities, the full potential of which will become clear over time. The creator of Litecoin emphasizes that he did not insist on the need for profound development of ‘digital silver’. However, the appearance of SegWit and the continued lack of consensus on the Bitcoin’s scalability led him to believe that Lirecoin could take a lead and become a positive force for the entire cryptocurrency space.
 
ʺWe have been drafting behind the Bitcoin race car for many years. It’s about time to take a turn out front,ʺ Charlie Lee concluded.
 
Currently, Litecoin is in the top five by market capitalization, competing with Ripple and Monero for the third place with varying success. The cryptocurrency is actively traded on the Chinese stock exchanges and it was added to Jaxx wallet and GDAX exchange.
 
The Litecoin Association published a roadmap for the development of cryptocurrency, which includes a new client software, improvement of the protocol and consolidation of various communication and management structures in July of 2016.

Source: forklog

  • January 12, 2017 11:48 AM MSK
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