BchainTalk Forum - Community for Blockchain Believers

Join like-minded people in a collaborative culture to share & learn.

Latest topics
» Interacting Through Decentralization: Sociall, The Blockchain Social Media Platform To End All Others
Today at 3:22 am by Vladdirescu

» Blockchain Gaming Innovators Chimaera Announce TGE Beginning 23 March 2018
Today at 2:33 am by Vladdirescu

» Physical Bitcoin Debit Cards Are Coming Back to Europe
Yesterday at 7:25 pm by Vladdirescu

» Databroker DAO Launch Pre-Sale and Announce IOT Sensor Data Marketplace, Scheduled March 19th 2018
Yesterday at 6:56 pm by Vladdirescu

» MedCredits Partner With Civic In the First Blockchain Backed Physician Registry
Yesterday at 4:14 am by Vladdirescu

» Huawei is Planning to Design a Smartphone Able to Run Blockchain Apps
Yesterday at 12:21 am by Vladdirescu

» Task Force in the UK Will Study Framework for Potential Cryptocurrency Regulations
Fri Mar 23, 2018 11:40 pm by Vladdirescu

» Regulators to Close Binance in Japan. Binance Moving to EU
Fri Mar 23, 2018 10:41 pm by Vladdirescu

» Blockchain Company Lympo Reveals Plans to Distribute Shares to Token Holders
Fri Mar 23, 2018 9:30 pm by Vladdirescu

» Qurrex, the World’s First Hybrid Cryptocurrency Exchange, is Changing the Decentralization Game
Fri Mar 23, 2018 3:49 pm by Vladdirescu

» Thaler, Property-Backed Stable Coin, to Power $5b Blockchain-based Investment Fund
Fri Mar 23, 2018 3:13 pm by Vladdirescu

» Snowden Revealed a Secret Document Showing How NSA Tracked Bitcoin Users
Thu Mar 22, 2018 9:45 pm by Vladdirescu

» FSB Chair Says Cryptocurrencies Don’t Pose Risk to the Global Financial Market
Thu Mar 22, 2018 9:24 pm by Vladdirescu

» Venezuelan Cryptocurrency Petro Banned by Trump Executive Order
Thu Mar 22, 2018 9:05 pm by Vladdirescu

» Essentia Gives Users Full Control to Their Data, ICO Starts 15.04
Thu Mar 22, 2018 8:28 pm by Vladdirescu

» Intimate ICO Launches Sex Industry Token, 7 Days Until Pre-Sale Ends
Wed Mar 21, 2018 8:58 pm by Vladdirescu

» Crowd for Angels ICO Progressing Ahead of Schedule
Wed Mar 21, 2018 4:39 pm by Vladdirescu

» Market.space Announces Partnership with Web Shield to Secure the Decentralized Cloud
Wed Mar 21, 2018 3:53 pm by Vladdirescu

» Dreams On a Smart Contract
Wed Mar 21, 2018 4:50 am by Vladdirescu

» Twitter May Ban Cryptocurrency Ads, Following Facebook and Google’s Lead
Wed Mar 21, 2018 3:35 am by Vladdirescu

Litecoin's Emerging Scaling Debate

View previous topic View next topic Go down

Litecoin's Emerging Scaling Debate

Post by Jake anderson on Fri Apr 21, 2017 3:10 pm

If you're wondering why litecoin is attracting new attention of late, you might not be alone.

The often-overlooked alternative cryptocurrency is in the midst of a historically uncharacteristic price spike and a vicious bout of technical drama that is rivaling bitcoin's own scaling debate.

In fact, litecoin's new developments are perhaps best viewed as simply the latest extension of bitcoin's two-year scaling debate, since the controversy also revolves around a proposed blockchain upgrade called Segregated Witness.

The long-in-progress code change, supporters say, could usher in a wave of changes that could improve bitcoin's usability. But, some miners and users in the community are opposed to the change on technical and political grounds – a fact that, months after the code's release, has effectively stalled adoption.

However, while bitcoin is struggling to secure the needed levels of support from miners for the upgrade to go through, litecoin has almost reached the necessary threshold.

Some say that making the change on litecoin will help to signal whether it's a safe and beneficial technical change, or not. Thus, it's beginning to look almost like a testbed for bitcoin. Others argue it could be a way for litecoin to become a novel network, one with a distinct value proposition in its own right.

Still, it's been a bumpy road. One minute the community thinks SegWit is about to activate, the next it doesn’t seem so clear. In this way, the story could soon take another turn soon.

But first, let's start with the basics.

A quick history

Litecoin, a cryptocurrency branded as 'the silver to bitcoin’s gold', first emerged in 2011. At a technical level, it's nearly identical to bitcoin, except for a shorter block time, a different hashing algorithm and a few other changes originally designed with merchants in mind.

In January, litecoin released a new version featuring code for SegWit and an activation threshold of 75% of miner signaling (rather than the 95% required for activation on the bitcoin network).

"[W]ith SegWit and bitcoin’s current block scaling deadlock, I see a potential for litecoin to help bitcoin break through this deadlock," said litecoin creator Charlie Lee in a blog post.

Further, hashrate support for the change has, for the most part, been on the rise over the last couple of months, prompting buzz and renewed interest in the altcoin.

Why hasn't SegWit activated yet?

Because SegWit tweaks consensus rules, changing how nodes validate blocks, it needs a supermajority of miner support to activate quickly and safely.

On litecoin, if 75% of blocks feature a snippet of code indicating support for the change within a two-week period (known as a 'retarget period'), then the change locks in. The market has been reacting as its inched toward that mark.

This week, when support crossed 75%, many users speculated that the change would activate, but, a couple of mining pools multiplied their hashpower, bringing down support for the period to roughly 70%.

This has prompted some further discussion about whether the ability of miners to veto code changes is good or bad for public blockchains.

What's next?

Some litecoin users have been calling for a user-activated soft fork, where the cryptocurrency's so-called economy paves the way for an upgrade, rather than mining pools.

In a nutshell, 'user-activated soft forks' (UASFs) are one of a few ways of pushing through consensus rule changes – rules that all nodes need to agree on unless they want to be left on an alternative blockchain. It's contentious because it could cause a network split. Another downside is that they take more time to prepare for.

Despite all the recent hype, though, it’s hard to say if SegWit will ever activate on litecoin, even if it’s close to doing so.

Nonetheless, some users and developers are making plans in case it does.

Bitcoin Core developer Johnson Lau said that, should SegWit activate on litecoin, he will shift some of his efforts there to work on MAST, a project that could expand the cryptocurrency's smart contract capabilities.

Lee also noted that a version of Lightning Network is also in the works, suggesting innovation could migrate to litecoin should it activate the change.


Jake anderson

Posts : 8
Reputation : 0
Join date : 2017-04-15

View user profile

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum