Charlie Lee’s Litecoin came about during one of the forks in bitcoin’s early days. Since then it has come to establish itself as one of the very grounded cryptocurrencies, presently being the seventh largest of them all. Litecoin is faster than bitcoin considering that new blocks are discovered at a rate of two and a half minutes as opposed to bitcoins ten minutes per block. This in turn gives its users very fast confirmations for transactions and very small and almost insignificant transaction fees. That is a quick resume of the cryptocurrency.
However, when its founder stated that the he had renounced ownership of all his Litecoins (still not clear whether he sold them or donated them), there was a stir of uneasiness in the crypto market concerning his commitment to the development of the currency which still has more to achieve if managed well. This move of his, he explained, was to avoid a conflict of interest. But that isn’t the only surprise he has for the crypto market; in a series of tweets recently posted on his official twitter account, Lee appears to be making a proposal for the soft forking of the Litecoin network.
Even Lesser Fees
Lee explains in multiple tweets how through the creation of a “fee market”, cost of transactions on the Litecoin network could be made even lesser. This sounds almost to good to be true, judging by just how small the present transaction fee is compared to that of bitcoin. The goal of this, he claims, is to bring competition among the currency’s miners. This “fee market” initiative causes each miner to set lower transaction fees which he is willing to accept in any block’s header.
A bit of knowledge in the area of cryptocurrency mining and circulation makes you come to know that whenever the network’s mempool becomes quite congested, it raises the fee miners charge for transactions. Similarly, when the mempool is of a much lesser volume, miners now compete for confirmations of rather low fee transactions.
Most people feared that this was going to cause a connivance among miners to impose high fees on transactions. Yet, looking at how decentralized cryptocurrencies are and the cost involved in owning and maintaining the hardware required for mining, there is enough reason to believe that miners have enough incentive not to be so corrupt.
Using Litecoin As A Coin For Payment
Litecoin has gained a lot of interest from many people as an exchange means due to its transaction fees and speed as compared to the mainstream cryptocurrency – bitcoin. Not long ago Coinbase came to accept and introduce Litecoin transactions on its platform, and sooner or later other exchange platforms will begin to do same. Litecoin is temporarily better than bitcoin in terms of its technical upgrades as well medium of microtransaction.
Featured image via Shutterstock
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