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 more quicker and safe deals. The Litecoin creator tweeted that the Lightning Network could use Litecoin as Bitcoin’s sidechain. Transactions can happen throughout chains sans boundaries. He additionally promises faster and less costly with safety and security guaranteed by decentralized PoW mining.

Atomic Swaps
Atomic swaps help blockchain transactions to happen without middlemans. These swaps use Hash Timelock Contracts. It is a time bound smart agreement which generates a cryptographic hash feature that can be validated in between partied involved in the deal. Atomic swaps sustain cross chain trading without a 3rd party, like a crypto exchange being entailed.
To exchange an altcoin for Bitcoin, investors are called for to place orders with crypto exchanges. They match deal orders to finish the purchase. A normal purchase to exchange an altcoin for Bitcoin calls for a vendor, 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 likewise eliminates middlemans. The network web links two events using repayment channels allowing 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 a remedy to blockchain scalability issue. The atomic exchanging of electronic possessions can reduce the reliance on centralized exchanges which are prone to hacks and failings. With continued technology, atomic swaps will allegedly assist run decentralized exchanges.

Charlie Lee has successfully completed atomic swaps using Litecoin in exchange for Bitcoin, Decred, and Vertcoin. Atomic swaps have actually obtained a step up with the KOMODO group completing an atomic swap on their Electrum web server. Electrum web server enables an individual to communicate with a cryptocurrency without having to download the whole blockchain. This makes the concept of decentralized exchanges a lot more reasonable.

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