If Bitcoin is Gold, then Litecoin is Silver”, boasts Charlie Lee- the proud creator of Litecoin- whenever asked about what’s the difference between the two clones. Created as a fork out of Bitcoin in October 2011, Litecoin’s journey so far has been more enticing than its parent rock. Charlie Lee- no less than a crypto celebrity-never fails to tweet about the on-goings inside the Litecoin network.
Perhaps, it would be a crypto-crime not to address the strife between the two leading crypto currencies. Let’s first have a brief of their prevailing differences.
The long list does not mitigate the cloning effect. The similarities between the two coins are much more interconnected. A look…
Bitcoin and Litecoin
|DIFFICULTY RETARGET||Re-targeted at every 2016 block for both|
|Both are Mineable- Proof of Work with a swift adoption of ASICs|
Both certified with MIT (Massachusetts Institute of Technology) License
Prone to 51% Attack·
Denial of Service (DoS) Attacks
More recently, Charlie Lee announced the possible leverage of Lightning Network (LN) and SegWit in one of his SegWit posts. In the post Charlie describes how eagerly he awaits the implementation of LN and Segwit on both Litecoin and Bitcoin networks. He further claims that this implementation will help Bitcoin not only to break free out of the scaling deadlock but also effectuate atomic cross-chain transactions between the two networks. An excerpt…
However, if you calculate this through a miner’s brain, this also becomes an invitation to the most threatening weaknesses of Bitcoin, viz. scalability and malleability. Correspondingly, more cars switching to the Litecoin highway in lieu of cheaper tolls might end-up over-flooding the highway and inevitably pushing the transaction fees as high as that of Bitcoin highway.
What adds to the distress of a user is the manipulation of this transaction fees. We are already familiar with such games being played inside large mining pools which compete to manipulate transaction fees in their favor. A tweet by Charlie signaling at such a dark future fee market says so-
Although the miners will need to signal the actual lowest transaction fees, they can still vote for what the future rate should be. Moreover, sacrificing the authoritative crown only secures its creator’s position at the time of future breakdown.
Giving away the power to miners (just like in Bitcoin) and fancying that they’ll lead a healthy, competitive mining ecosystem is an analogy to OOB payments not messing things up.
OOB payments have been a favorite source of income for data mining firms. The most recent incident being the denouncing of the avowal of social media giant
Facebook by the data mining firm Cambridge Analytica- which exposed the data harvesting and breaching of around 87 million Fb users.
No wonder why Bitcoin’s core team is seeing a possible future threat to its existence in the form of Litecoin.
If a reader accesses the hyperlink attached to this image, you’ll be directed towards Charlie Lee’s official GitHub profile (coblee) where he incessantly keeps building Litecoin as well as Bitcoin block by block.
A note of condolence
Bitcoin was the pioneer crypto coin which revolutionized the way transactions were conventionally undertaken. When all’s said and done, every altcoin will always emerge out of the standards developed by our king- Bitcoin. No matter how big they grow, they can never surpass their daddy.
Besides, whether or not Litecoin will ever become the world’s largest crypto currency- even surpassing Bitcoin- is dependent on how much can Litecoin branch out itself with its roots still tied to our Nakamoto in disguise- Charlie Lee.