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How Litecoin [LTC] will drive Bitcoin [BTC]’s Lightning Network adoption

Anirudh VK

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How Litecoin [LTC] will drive Bitcoin [BTC]'s Lightning Network adoption
Source: Unsplash

Litecoin [LTC] has long been said to be the silver to Bitcoin [BTC]’s gold, but recent developments may cement its place further as the #1 cryptocurrency’s wingman. Due to its 4x block speed over Bitcoin and perpetually low transaction fees, it is suitable for smaller payments.

More recently, the Litecoin blockchain has emerged to be one of the most suitable ways to get on to Bitcoin’s Lightning Network. The network is Bitcoin’s 2nd layer scaling solution and is designed to increase the transaction throughput of Bitcoin.

It achieves this by opening payment channels off the Bitcoin blockchain in which multiple transactions can take place. Once the payment channel is closed, all of the transactions are updated on the main blockchain to ensure their immutability. This is said to push Bitcoin’s transaction speed to hundreds of thousands of transactions per second.

However, as the Lightning Network is still a work in progress, not many of the average population, such as merchants, have access to it. There is one method that may ensure the next big push for adoption will be driven by Litecoin.

A developer known as Alex Bosworth has implemented a technology known as Atomic Swaps, which will allow users to transfer value from the Litecoin blockchain to the Lightning Network. This is essentially an on-chain to off-chain swap, essentially transferring value across two blockchains.

This also means that users can pay an invoice that is on the Lightning Network through Litecoin. Charlie Lee, the creator of Litecoin, said:



“Litecoin will also be the easiest onramp onto the Lightning Network. BTC takes too long and fees to high? No problem. Open an LTC payment channel on chain cheaply and quickly, then atomically swap for BTC if/when you need to. This can be done in one step using submarine swaps!”

Moreover, there have since been advancements in making the Lightning Network more accessible to merchants and others who wish to accept payments through Bitcoin. This includes solutions such as the Casa Node, which is an all-in-one solution to run a node on the Lightning Network. This will allow those who utilize this product to send and receive payments transferred through the network. Moreover, Litecoin support for this product is slated to come soon.

This also lays the foundation for a decentralized exchange across these two blockchains, as stated by Charlie Lee. He stated:

“Lightning Network will be the ultimate decentralized exchange. Users that are running LN on both BTC and LTC can advertise an exchange price and act as a maker earning a spread. Other users can act as a taker and atomically swap LTC/BTC with the maker node via lightning.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

Bitcoin [BTC]: Debating on king coin’s transaction speed is a red herring argument, says Charlie Shrem

Akash Anand

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Bitcoin [BTC]: 'Debating about BTC's transaction speed is a red herring arugument', claims Charlie Shrem
Source: Pixabay

The debate around Bitcoin [BTC] and its effectiveness in the current financial atmosphere has been a long ensuing debate in the cryptocurrency industry. The supporters and naysayers of the world’s largest cryptocurrency have locked horns on various aspects of the coin, be it the coin’s characteristic as a store of value or the amount of time it takes to settle Bitcoin transactions.

In a recent tweet, Charlie Shrem, the Founder of Bitcoin.org and one of the most popular Bitcoin proponents, spoke about the topic, directly addressing critics who had a problem with settlement times. His tweet read:

““Transaction speeds” when debating #bitcoin vs other faux-crypto’s is red herring argument. There were plenty of fast ways to move money before bitcoin. That’s not why we’re here. We’re building a censorship resistant value network that can-never be controlled by a single party.”

Bitcoin proponents had always made it a point that the cryptocurrency was never meant for fast transactions, but rather to compete with Gold as the standard for a ‘store of value’. Even Samson Mow, the CSO at Blockstream had earlier claimed that BTC was never meant to be fast by adding:



“If you want money, it does not need to be very fancy, and a lot of the altcoin projects; I don’t wanna go into it but they are just based on gimmicks. What you really want is sound money, something which is reliable and bulletproof.”

The ‘BTC is not effective’ camp had responded voraciously many a time by stating that something aimed at changing the financial dynamic should be nothing short of fast or else there was no way it could become an effective form of value. This rebuttal for this argument was that Bitcoin’s goal was to create a cryptocurrency integrated mainstream structure and even though it was not lightning fast, the transaction speed of Bitcoin was still faster than that of current methods like Visa and MasterCard.

Charlie Shrem was also in the news recently when he stated that when Mt Gox imploded, the market created the first “token as debt”. The statement was made in connection with the massive loss of funds which occurred following the hack of the then largest cryptocurrency exchange.





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