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 fans browsing the cryptoverse for blockchains with even more much faster and secure transactions. The Litecoin founder tweeted that the Lightning Network could make use of Litecoin as Bitcoin’s sidechain. Transactions can happen across chains sans borders. He likewise assures faster as well as cheaper with safety ensured by decentralized PoW mining.

Atomic Swaps
Atomic swaps assist blockchain deals to occur without middlemans. These swaps make use of Hash Timelock Agreements. It is a time bound wise agreement which produces a cryptographic hash function that can be confirmed in between partied associated with the deal. Atomic swaps support cross chain trading without a third party, like a crypto exchange being entailed.
To exchange an altcoin for Bitcoin, investors are needed to place orders with crypto exchanges. They match deal orders to finish the deal. A typical transaction to exchange an altcoin for Bitcoin calls for a seller, a buyer as well as an intermediary which is a coin exchange.

The lightning network like atomic swaps additionally cuts out middlemans. The network links two events using repayment networks permitting real-time purchases. It is a peer to peer system for making micropayments without passing on custody of funds to an entity like an exchange. It is promoted as a solution to blockchain scalability issue. The atomic exchanging of electronic possessions could decrease the reliance on centralized exchanges which are susceptible to hacks and also failings. With continued technology, atomic swaps will apparently assist run decentralized exchanges.

Charlie Lee has actually effectively finished atomic swaps making use of Litecoin for Bitcoin, Decred, and Vertcoin. Atomic swaps have actually obtained a step up with the KOMODO group finishing an atomic swap on their Electrum server. Electrum server permits an individual to engage with a cryptocurrency without needing to download and install the entire blockchain. This makes the idea of decentralized exchanges much more reasonable.

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