Daily Litecoin News Update
We’re closing in on the launch of the “Lightning Network (LN)” and it’s fair that investors are reminded of its merits ahead of time. After all, once this upgrade is out, things may never be the same again for Litecoin.
Lightning Network promises to solve the biggest problem cryptocurrencies face today-that of scalability. And so, it is touted as a technology that would forever alter the cryptocurrency landscape.
In simple words, it will allow blockchain-based cryptocurrencies to process millions of transactions instantaneously-a solution that would make digital currencies, like Litecoin, comparable to the likes of Visa and Mastercard.
In the case of Litecoin, the two minute wait times may be shortened to less than picoseconds.
We followed the project’s progress on the public repository, GitHub, where the project is currently underway. The beta version 0.4.0 of the Lightning Network is almost 87% complete now. (Source: “lightningnetwork/lnd,” GitHub, Last accessed March 12, 2018.)
Currently, the Lightning Network is running on the testnet and since we don’t have a final release date yet, chances are that we may have to wait a few more weeks before the technology makes it to the mainnet.
By mainnet, we mean the actual blockchain of Litecoin over which LN will run as a second layer solution. That’s when average users like you and I may be able to use it.
Another great utility of LN will be the availability of “atomic swaps”. Atomic swaps would make cryptocurrencies fungible, just like fiat currency.
For reference, atomic swaps are figurative blockchain contracts allowing crypto users to swap one crypto with another almost instantly and without the need of an intermediary.
To give you an idea how this may work, picture yourself at a coffee shop in South Africa where you’ve just run out of local currency. You do have Litecoins though, but the seller accepts only Bitcoin. With an atomic swap, you may still be able to buy your morning fuel.
An instant atomic swap will allow you to swap your Litecoins with Bitcoin on the Lightning Network, and pay the merchant with BTC.
This is no pipe dream. Bitcoin to Litecoin atomic swaps have already been tested. They work!
Litecoin founder Charlie Lee has himself swapped LTC for BTC in a one-on-one test transaction with a Bitcoin holder. This was done without the need of an exchange.
— Charlie Lee [LTC] (@SatoshiLite) September 22, 2017
That is old news now. The Lightning Network has been under development for a while. But the developers possibly want to perfect its service before it’s delivered to users.
While we await it, it’s good to know that Litecoin prices have been doing well than the broader crypto market of late.
In the past 24 hours, Litecoin prices are up about 3.52% as the market recovers from last week’s slump. As of now, one LTC is trading for $190.83 apiece.
If all goes well, we expect Lightning Network to be launched by the third quarter. It could become a major catalyst of Litecoin’s mainstream adoption. Henceforth, we may be encouraged to revise our Litecoin price prediction upward. Until then, however, we are sticking with our $400 price target for 2018.