- Executive of Litecoin foundation says Litecoin choose security and decentralization over scalability
- Litecoin set to address scalability and security issue with layer-2
Litecoin News Today – Security, scalability, and decentralization is very important to any blockchain-based network. The lack of these vital properties has been the case of the Ethereum network over the ears. In fact, Vitalik Buterin – the co-founder of Ethereum – recently said that a blockchain system can only, at most, have to out of the three abovementioned properties.
Buterin said that it is not “impossible” for a distributed ledger technology-based network to have all three properties at the same time; rather it is a tough job. This is the scalability trilemma.
Litecoin (LTC) Price Today – LTC / USD
Executive of Litecoin Foundation Says Litecoin Choose Security and Decentralization over Scalability
Talking about the same issue, Xinxi Wang – the Director and Co-founder of the Litecoin Foundation, at the stage of BLockShow 2019, said:
“I do believe that there’s always a trade-off between these three. For example, for Bitcoin and Litecoin we always choose decentralization and security instead of scalability. That’s why Bitcoin and Litecoin are all very slow.”
Comparing it with a legacy system, the LTC executive stated that traditional payment systems that process billions of transactions on a daily basis would have to choose scalability and security, but will have a very centralized system.
Litecoin Set to Address Scalability and Security Issue with Layer-2
According to Wang, the dev team of Litecoin is building a layer 2 on top of Litecoin to address scalability as well as security. Ethereum decided to tackle its scalability issue with Sharding. However, the dev team of Litecoin has opted for a layer 2 solution, which is also known as Lightning Network (LN).
Over the last couple of years, the Lightning Networked has amassed a considerable level of attention from the community. Joseph Poon and Thaddeus Dryja proposed the Lightning Network back in 2016. They introduced the LN to basically solve the scalability, cost, and confirmation time issue of Bitcoin (BTC) and Litecoin (LTC). The director and co-founder of the Litecoin Foundation said that the Lightning Network is revolutionary for Litecoin. In a statement, he said:
“This lightning network is revolutionary because it can handle millions of transactions per second or even higher. So the two layers work together to mitigate the shortages of each other, one is not scalable, one is scalable, but is centralized.”
Litecoin’s Price Continue to Underperform in the Crypto Market
The price of Litecoin has continued to underperform in the digital currency market. Litecoin has failed to retain the upward momentum after posting impressive gains earlier this year. At press time, Litecoin (LTC) is trading at $46 after a decrease of about 5 percent over the past day.