Litecoin is effectively Bitcoin’s sidechain, says Charlie Lee

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August 13, 2018 by
Litecoin is effectively Bitcoin’s sidechain, says Charlie Lee

Charlie Lee’s recent tweet lightens up the day for crypto followers looking the cryptoverse for blockchains with more quicker as well as protected transactions. The Litecoin creator tweeted that the Lightning Network can make use of Litecoin as Bitcoin’s sidechain. Deals can occur across chains sans borders. He additionally promises faster as well as less costly with security guaranteed by decentralized PoW mining.

Atomic Swaps
Atomic swaps assist blockchain transactions to take place without middlemans. These swaps use Hash Timelock Contracts. It is a time bound smart agreement which generates a cryptographic hash function that can be confirmed between partied involved in the transaction. Atomic swaps sustain cross chain trading without a 3rd party, like a crypto exchange being involved.
To trade an altcoin for Bitcoin, investors are required to location orders with crypto exchanges. They match buy and sell orders to finish the purchase. A normal deal to trade an altcoin for Bitcoin calls for a seller, a buyer as well as an intermediary which is a coin exchange.

See Also: Litecoin transactions now possible via telegram & SMS payments will be available soon

The lightning network like atomic swaps additionally eliminates middlemans. The network web links two celebrations via payment channels permitting real-time deals. It is a peer to peer system for making micropayments without entrusting wardship of funds to an entity like an exchange. It is promoted as a solution to blockchain scalability problem. The atomic swapping of electronic possessions can decrease the dependence on centralized exchanges which are prone to hacks as well as failings. With continued innovation, atomic swaps will apparently aid run decentralized exchanges.

Charlie Lee has efficiently completed atomic swaps using Litecoin for Bitcoin, Decred, as well as Vertcoin. Atomic swaps have actually obtained a step up with the KOMODO group finishing an atomic swap on their Electrum server. Electrum server allows a user to engage with a cryptocurrency without having to download the entire blockchain. This makes the concept of decentralized exchanges more practical.

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