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 brightens the day for crypto fans looking the cryptoverse for blockchains with more quicker as well as secure purchases. The Litecoin owner tweeted that the Lightning Network could use Litecoin as Bitcoin’s sidechain. Purchases could happen across chains sans borders. He also assures faster as well as less costly with safety and security ensured by decentralized PoW mining.

Atomic Swaps
Atomic swaps assist blockchain purchases to occur without intermediaries. These swaps make use of Hash Timelock Contracts. It is a time bound smart contract which creates a cryptographic hash function that can be validated in between partied associated with the transaction. Atomic swaps support cross chain trading without a 3rd party, like a crypto exchange being involved.
To trade an altcoin for Bitcoin, traders are required to location orders with crypto exchanges. They match deal orders to complete the purchase. A common deal to trade an altcoin for Bitcoin calls for 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 web links two parties via payment channels permitting real-time purchases. It is a peer to peer system for making micropayments without entrusting protection of funds to an entity like an exchange. It is proclaimed as an option to blockchain scalability issue. The atomic swapping of electronic properties can minimize the dependancy on centralized exchanges which are at risk to hacks and failings. With proceeded advancement, atomic swaps will apparently help run decentralized exchanges.

Charlie Lee has effectively completed atomic swaps utilizing Litecoin for Bitcoin, Decred, and also Vertcoin. Atomic swaps have actually obtained a step up with the KOMODO team finishing an atomic swap on their Electrum web server. Electrum server allows a customer to engage with a cryptocurrency without needing to download the whole blockchain. This makes the idea of decentralized exchanges more reasonable.

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