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 brightens the day for crypto fans looking the cryptoverse for blockchains with even more quicker as well as safe and secure transactions. The Litecoin creator tweeted that the Lightning Network can make use of Litecoin as Bitcoin’s sidechain. Transactions could occur across chains sans borders. He additionally assures faster and also more affordable with security assured by decentralized PoW mining.

Atomic Swaps
Atomic swaps help blockchain purchases to take place without middlemans. These swaps utilize Hash Timelock Agreements. It is a time bound clever contract which generates a cryptographic hash feature that can be verified in between partied involved in the purchase. Atomic swaps support cross chain trading without a third party, like a crypto exchange being entailed.
To trade an altcoin for Bitcoin, investors are needed to area orders with crypto exchanges. They match deal orders to complete the transaction. A normal purchase to trade an altcoin for Bitcoin needs a seller, a customer 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 also cuts out middlemans. The network web links 2 events using payment networks 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 solution to blockchain scalability problem. The atomic exchanging of electronic possessions could reduce the dependence on centralized exchanges which are at risk to hacks as well as failures. With proceeded advancement, atomic swaps will supposedly help run decentralized exchanges.

Charlie Lee has actually effectively completed atomic swaps using Litecoin in exchange for Bitcoin, Decred, and also Vertcoin. Atomic swaps have got a step up with the KOMODO team completing an atomic swap on their Electrum server. Electrum server enables a customer to communicate with a cryptocurrency without needing to download the whole blockchain. This makes the idea of decentralized exchanges a lot more sensible.

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