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 current tweet lightens up the day for crypto followers browsing the cryptoverse for blockchains with even more quicker as well as protected purchases. The Litecoin founder tweeted that the Lightning Network can make use of Litecoin as Bitcoin’s sidechain. Transactions could happen throughout chains sans borders. He also guarantees faster and also less costly with safety guaranteed by decentralized PoW mining.

Atomic Swaps
Atomic swaps aid blockchain deals to occur without middlemans. These swaps make use of Hash Timelock Contracts. It is a time bound wise agreement which generates a cryptographic hash function that can be validated between partied involved in the deal. Atomic swaps support cross chain trading without a third party, like a crypto exchange being involved.
To exchange an altcoin for Bitcoin, investors are called for to location orders with crypto exchanges. They match buy and sell orders to complete the transaction. A normal transaction to trade an altcoin for Bitcoin requires a vendor, a buyer and also 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 cuts out intermediaries. The network links two celebrations through repayment channels permitting real-time transactions. It is a peer to peer system for making micropayments without handing over safekeeping of funds to an entity like an exchange. It is touted as a service to blockchain scalability issue. The atomic exchanging of electronic possessions can decrease the dependence on centralized exchanges which are prone to hacks as well as failures. With continued advancement, atomic swaps will apparently help run decentralized exchanges.

Charlie Lee has actually effectively completed atomic swaps making use of Litecoin for Bitcoin, Decred, as well as Vertcoin. Atomic swaps have got a step up with the KOMODO team finishing an atomic swap on their Electrum web server. Electrum server enables a user to connect with a cryptocurrency without needing to download and install the entire blockchain. This makes the concept of decentralized exchanges more practical.

Teja

Krishna Teja Reddy is a crypto enthusiast and a market analyst. He is specializes in market analysis and strives to provide accurate crypto market statistics to the crypto community and cryptocurrency investors. He focuses on delivering quality news stories to him readers and aspires to be a successful business journalist.

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