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 searching the cryptoverse for blockchains with even more quicker as well as secure transactions. The Litecoin owner tweeted that the Lightning Network can make use of Litecoin as Bitcoin’s sidechain. Purchases could take place throughout chains sans boundaries. He also assures faster and cheaper with protection guaranteed by decentralized PoW mining.

Atomic Swaps
Atomic swaps assist blockchain transactions to occur without middlemans. These swaps make use of Hash Timelock Agreements. It is a time bound wise agreement 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 included.
To exchange an altcoin for Bitcoin, investors are needed to area orders with crypto exchanges. They match deal orders to complete the deal. A normal deal to exchange an altcoin for Bitcoin calls for a vendor, a buyer and 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 celebrations using settlement channels allowing real-time purchases. It is a peer to peer system for making micropayments without delegating wardship of funds to an entity like an exchange. It is promoted as an option to blockchain scalability issue. The atomic exchanging of digital assets can lower the dependence on centralized exchanges which are prone to hacks and failings. With continued advancement, atomic swaps will allegedly aid run decentralized exchanges.

Charlie Lee has actually effectively completed atomic swaps utilizing Litecoin for Bitcoin, Decred, and Vertcoin. Atomic swaps have obtained a step up with the KOMODO group finishing an atomic swap on their Electrum server. Electrum web server enables an individual to connect with a cryptocurrency without having to download and install the entire blockchain. This makes the principle of decentralized exchanges extra sensible.

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