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 looking the cryptoverse for blockchains with even more quicker and protected deals. The Litecoin owner tweeted that the Lightning Network could utilize Litecoin as Bitcoin’s sidechain. Purchases can take place throughout chains sans borders. He likewise promises faster as well as more affordable with security ensured by decentralized PoW mining.

Atomic Swaps
Atomic swaps aid blockchain deals to take place without intermediaries. These swaps make use of Hash Timelock Agreements. It is a time bound smart contract which produces a cryptographic hash function that can be validated 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 required to place orders with crypto exchanges. They match buy and sell orders to complete the purchase. A normal purchase to exchange an altcoin for Bitcoin requires a seller, 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 removes middlemans. The network links two events using repayment networks permitting real-time purchases. It is a peer to peer system for making micropayments without delegating guardianship of funds to an entity like an exchange. It is proclaimed as a remedy to blockchain scalability trouble. The atomic exchanging of electronic assets can minimize the dependence on central exchanges which are susceptible to hacks as well as failings. With proceeded development, atomic swaps will apparently assist run decentralized exchanges.

Charlie Lee has actually efficiently completed atomic swaps utilizing Litecoin for Bitcoin, Decred, and also Vertcoin. Atomic swaps have obtained a step up with the KOMODO team completing an atomic swap on their Electrum server. Electrum server enables a user to connect with a cryptocurrency without having to download the entire blockchain. This makes the concept of decentralized exchanges a lot more practical.

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