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Will Litecoin (LTC) boost adoption for Bitcoin’s Lightning Network?

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While Bitcoin is the undisputed king of all cryptocurrencies, it’s frequently criticized because of the time it takes to complete a transaction, the lack of scalability and the vast amounts of power it takes to keep the blockchain going through mining. 

That’s why the Lightning Network has been developed and deployed. It is a second layer for the Bitcoin blockchain and network which is meant to address the problems of speed and scalability and to increase every user’s privacy. Another notable innovation it brings is the Atomic Swaps.

The Atomic Swaps

Atomic Swaps allow converting your currencies from one to another. This is possible thanks to a smart contract technology known as hash-time locked contract (HTLC). This kind of contract ensures the safe exchange of currencies by enforcing pre-set parameters. The trade must be completed within a given time limit, and the transaction must be completed from both sides before any funds are released.

The main consequence of this protocol is that it eliminates the need for any central service, authority, arbiter or third party. It also helps to decentralize the coins involved in the HTLC because users don’t need to keep their currency stored in wallets or exchanges.

Let’s clarify one crucial feature of the Lighting Network. While it’s currently associated mainly with Bitcoin, it’s not specific to it at all; it’s just a layer of new protocols that can be integrated into any other blockchain which is excellent news for the community at large. Many other cryptocurrencies have already announced the intention to adopt the Lighting Network (Zcash, Decred, and Litecoin among others) to some degree.

Litecoin is, of course, a Bitcoin fork created by Charlie Lee, a former Google developer. Because it uses the same blockchain but it’s faster and lighter, the Litecoin blockchain has been used very often as a sandbox for Bitcoin. Mr. Lee was even the first person ever to complete an atomic swap last year.

Because of the close relationship and technical similarities, there are between BTC and LTC; the early users will find more advantages in using those two tokens to do atomic swaps. Mr. Lee said that,

“Litecoin will also be the easiest onramp onto the Lightning Network. BTC takes too long and fees to high? No problem. Open an LTC payment channel on chain cheaply and quickly, then atomically swap for BTC if/when you need to. This can be done in one step sing submarine swaps!”

Mr. Lee considers the Lighting Network’s functionality akin to a decentralized exchange because transactions can be carried out by any two parties in agreement without any third party or central authority. Litecoin’s creator added that the,

“Lightning Network will be the ultimate decentralized exchange. Users that are running LN on both BTC and LTC can advertise an exchange price and act as a maker earning a spread. Other users can act as a taker and atomically swap LTC/BTC with the maker node via lightning.”

The Lighting Network is a very promising protocol. It could just be the thing that solves many of the pending issues with the Bitcoin network and many others as well. 

Because of its versatility, it can, and should, be adopted by many different blockchain networks and currencies. Adoption by several such projects would be a great benefit for the crypto community as a whole.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Maxpixel.net

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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