Why Charlie Lee thinks Litecoin can play a crucial role in the Bitcoin Lightning Network?

By September 7, 2018 No Comments
Cryptocurrency Litecoin Exchange

For those who are enthusiastic about digital currency, one of the shining lights of the cryptocurrency space is the Lightning Network. Created as a separate network which adjoins to the existing Bitcoin network, the Lightning Network could enable peer-to-peer transactions which would not be susceptible to lengthy processing periods or excessive transaction fees. This is because the Lightning Network payments would happen on an individual basis. The thought process is that they could be dealt with independently of the existing Bitcoin network so as to liberate them from any slowdowns associated with regular bitcoin transactions.
Charlie Lee, the founder of Litecoin, the sixth largest cryptocurrency by market capitalization, believes that Litecoin can play a crucial role as an enabler of the Lightning Network as it develops and establishes itself. He reiterated this stance as recently as one week ago.
Litecoin the “Easiest Onramp”
On July 11th, Lee tweeted that Litecoin “will also be the easiest onramp onto the Lightning Network. BTC takes too long and fees [too] 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.”
Lightning Labs who is one of the developers of this network has a beta feature in its network which allows for the selection of two digital assets. This feature, however, is not yet available on the main net as per a report by Crypto Vest. Litecoin has developed its own Lightning Network which has tested atomic swaps. There is still a need to fine-tune parts of the network before this procedure can be used and adopted.
Today, Litecoin is among the go-to cryptocurrencies with respect to on-chain transactions that are high speed and cost-effective. The bitcoin network, at one point troubled by congestion, has figured out a way to solve many of those challenges. It is now running on comparatively low fees and has also established itself as the preferred network for large transactions. The way in which the Lightning Network processes transactions causes some to shy away from doing large transactions as it is considered high risk when done through this network.
It has taken several years to develop the Lightning Network and it was finally launched in March 2018. A majority of people felt that the launch was rough as challenges related to traffic were prevalent and led to losses being experienced by some users. Even now, months since the launch, the Lightning Network is yet to see its capacity increase the way people hoped it would.
Maybe Litecoin can help propel this network to where the level that the public hopes for it to reach.

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