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 recent tweet lightens up the day for crypto followers searching the cryptoverse for blockchains with more quicker and safe and secure transactions. The Litecoin founder tweeted that the Lightning Network can use Litecoin as Bitcoin’s sidechain. Transactions could happen across chains sans boundaries. He likewise assures faster as well as cheaper with safety and security ensured by decentralized PoW mining.

Atomic Swaps
Atomic swaps help blockchain deals to happen without intermediaries. These swaps use Hash Timelock Agreements. It is a time bound clever contract which generates a cryptographic hash feature that can be validated between partied associated with the transaction. Atomic swaps support cross chain trading without a 3rd party, like a crypto exchange being involved.
To trade an altcoin for Bitcoin, investors are needed to area orders with crypto exchanges. They match buy and sell orders to complete the purchase. A typical purchase to trade an altcoin for Bitcoin needs a seller, a buyer and 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 web links two celebrations via settlement channels permitting real-time deals. It is a peer to peer system for making micropayments without handing over wardship of funds to an entity like an exchange. It is promoted as an option to blockchain scalability trouble. The atomic switching of digital assets could decrease the reliance on centralized exchanges which are at risk to hacks and failures. With proceeded advancement, atomic swaps will supposedly help run decentralized exchanges.

Charlie Lee has actually efficiently finished atomic swaps utilizing Litecoin for Bitcoin, Decred, and also Vertcoin. Atomic swaps have obtained a step up with the KOMODO group completing an atomic swap on their Electrum server. Electrum server permits a user to connect with a cryptocurrency without needing to download the whole blockchain. This makes the principle of decentralized exchanges more realistic.

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