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 and protected purchases. The Litecoin founder tweeted that the Lightning Network could use Litecoin as Bitcoin’s sidechain. Transactions can occur throughout chains sans boundaries. He also assures faster as well as more affordable with safety guaranteed by decentralized PoW mining.

Atomic Swaps
Atomic swaps help blockchain deals to take place without intermediaries. These swaps make use of Hash Timelock Agreements. It is a time bound wise contract which produces a cryptographic hash feature that can be validated in between partied associated with the deal. Atomic swaps support cross chain trading without a 3rd party, like a crypto exchange being involved.
To exchange an altcoin for Bitcoin, investors are required to place orders with crypto exchanges. They match deal orders to finish the transaction. A normal purchase to trade an altcoin for Bitcoin calls for a seller, a purchaser 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 links 2 events through repayment channels allowing real-time purchases. It is a peer to peer system for making micropayments without delegating safekeeping of funds to an entity like an exchange. It is proclaimed as an option to blockchain scalability problem. The atomic exchanging of digital assets can lower the reliance on centralized exchanges which are susceptible to hacks and failures. With proceeded development, atomic swaps will apparently help run decentralized exchanges.

Charlie Lee has actually effectively finished atomic swaps utilizing Litecoin for Bitcoin, Decred, and Vertcoin. Atomic swaps have got a step up with the KOMODO group finishing an atomic swap on their Electrum web server. Electrum web server enables a user to engage with a cryptocurrency without having to download the whole blockchain. This makes the idea of decentralized exchanges a lot more practical.

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