Litecoin, Recent Gains Suggest Long-Term Success
When you talk to someone who knows very little about cryptocurrency, usually they are able to recognize Bitcoin, or even Ethereum, but it is rare to find someone not part of the community who knows about the Digital Silver. Litecoin is an altcoin that has seen some of the most stable success since its inception by Charlie Lee in 2011. Like bitcoin, it is a completely decentralized network that functions almost identically to the Bitcoin Blockchain.
The main difference is that Litecoin operates as a kind of testing ground for Bitcoin and other cryptocurrencies when it comes to implementing new updates to the Blockchain. Most notably, its use of the SegWit update which it completed via a soft fork about a year before the same protocol was added to the Bitcoin system. The difference was that when Bitcoin updated its software, it resulted in a hard form that created Bitcoin Cash, an altcoin based on the Legacy Blockchain that is not decentralized and operates mainly in South Korean and Chinese markets.
The SegWit update on Litecoin’s network has helped greatly with the scalability issues inherent in Blockchain technology when there is an increase in transaction density beyond what the mining pools can verify, leading to long backlogged transactions. Litecoin serves as an example for how Bitcoin Core and the Bitcoin community of miners and developers should rally around updates that move the currency forward instead of hard forking every time there is a new protocol added to the network.
With Litecoin’s recent success, moving from its stagnant point just under $60 to over $70 in a matter of days it is likely that the coin will regain its all-time high around the low 80s in the near future. As more people begin entering the market, many investors are throwing their weight behind Litecoin as an alternative to Bitcoin during particularly volatile moments. A safe way to secure funds in the days leading up to new updates on Bitcoin’s network or any hard forks that will come up in the future.