A rebirth with Lightning Network?

To characterize the behavior of the crypto market in recent times, we can say that it is extremely unpredictable. Ascents, meteoric descents, false hopes of ascents and so on. Volatility is part of the cryptocurrency game. But this volatility seems to have become commonplace, at least in the current period. Bitcoin (BTC), ether (ETH) or Polkadot (DOT) are the cryptocurrencies that dominate the news. But what about Litecoin (LTC) and its potential? Especially when it comes to what is called the Lightning Network? We give you all the details.

  • What is Lightning Network?
  • Litecoin would have better scalability than bitcoin: info or intox?
  • The bold role Litecoin can play

What is Lightning Network?

The first presentation of Lightning network goes back to 2015. For those who knew little or nothing about Lightning Network, they could hear about it again thanks to bitcoin. It is still necessary to understand what it actually represents.

Lightning Network is first and foremost a decentralized network. It was built as bitcoin network overlay (BTC). Various features such as payments peer to peer snapshots make its success, thanks to channels of two-way payments. More specifically, smart contracts allow recurrence of payments between two persons without transaction costs. And it is precisely on the absence of transaction costs that lies the great advantage of Lightning Network. Initially, both persons must open a payment channel. Funds are thus placed in custody thanks to a multi-signature contract, executed through blockchain. When such a channel is open, the two main characters are free to carry out as many transactions as they wish. There will be no transaction fees associated as transactions will not be written to the chain.

Litecoin would have better scalability than bitcoin: Info or intox?

The biggest problem that plagued bitcoin was its scalability. In other words, it failed to adapt to the increasing demands of use. Solving this by increasing the block size limit is not a sustainable solution in itself. Thus, Bitcoin is instead betting on the off-chain. Exactly the operation of the Lightning Network.

Many people claim that Litecoin has better scalability than bitcoin. But is that true? Not so sure. When Litecoin was launched in 2011, it handled a block of just 2.5 minutes. Although Bitcoin needed almost 10 minutes per. block. A significant difference. But today, this difference is no longer so obvious. The scalability of bitcoin has seen significant progress, especially thanks to the assimilation power of the Lightning Network. In addition, the success of this network has aroused investor interest in many cryptocurrencies that have been touted as alternatives to bitcoin. Alternatives that would be faster to use and above all cheaper. When we return to Litecoin (LTC), it is interesting to look at some numbers. Since the record high of $ 410 in May 2021, it has fallen nearly 88%. For its part, bitcoin (BTC) has only lost 69% of its value since it peaked at $ 69,000. Reveal numbers? Maybe, but we do not know what yet. The competition seems to be confirmed between the two cryptocurrencies.

The bold role Litecoin can play

Bitcoin enthusiasts and LTC opponents say unequivocally that LTC is not very useful. Wrong. Despite the criticism, Litecoin shows better performance than most other similar cryptocurrencies. The cryptosphere goes so far as to say that Litecoin acts as a kind of test network for the famous bitcoin. The insertion of update SegWit is a perfect example. Developing a fully decentralized cryptocurrency from scratch takes time. Litecoin has the advantage of registering the signatures for each transaction outside the block, at least from SegWit. Litecoin was also present from the beginning of its use Lightning network. Recently, it continues to serve as a test network for various promising new crypto technologies and solutions. We can quote the emergence of MWEB (for Mimblewimble Extension Blocks), which drives Litecoin to “most accessible cryptocurrency” status with enhanced functionality and privacy features.

The Litecoin Foundation is even convinced that the altcoin has a bright future ahead of it. Its prospects are further enhanced by its growing integration through multiple platforms and portals. PayPal and Venmo or Interactive Brokers and Robinhood are just a few examples. Access to Litecoin for new users continues to grow so much that LTC transactions saw a 352% increase in activity from 2019 to 2021. During the same period, bitcoin has experienced negative growth. Litecoin, a crypto with a promising future to see? The answer is yes.

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All Write SEO

Founded by Marc-Antoine CAEN POLETTI in 2021, Alt Write SEO is a content writing agency specializing in cryptocurrency, blockchain and NFTs. It finds its roots in 2016 with the French Cryptocurrency Club, of which Marc-Antoine is the current president. Our mission is to support French-speaking crypto companies to make France the first cryptonation in the world.

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