Charlie Lee – the founder of Litecoin (LTC) said that the Lightning Network can use Litecoin (LTC) as the sidechain of bitcoin BTC through atomic swaps. Seamless transfers promise to be more secure, cheaper, and faster. Presently, to exchange other digital currencies for Bitcoin (BTC), you need to place an order with digital currency trading platforms that match sell and buy orders.
A completed transaction comprises of the buyer, the seller, and a third-party intermediary such as Coinbase or Binance.
Atomic swaps enable and simplify cross-chain trading without the need of an intermediary. For instance, Mr. John can exchange his ten Litecoin token for Mr. Nelson’s 0.1 Bitcoin (BTC) directly, P2P, without Coinbase or Binance. Atomic swaps utilize HTLCs (hash time-locked contracts) to make sure both parties stick to their end of the agreement once they submit their transactions to their respective blockchains.
Both parties then need a key to show payment proof and to release their swapped tokens. Both parties are linked via payment channels by the Lightning Network, enabling real-time transactions that eliminate the delays in Bitcoin blockchain and custodial intermediaries.
An increasing network of blockchains swapping digital currencies atomically could also cut out the risk of trading on centralized trading platforms which are prone to attacks, failures, and hacks. The next level of digital currency speed and scalability is being addressed by the development team of Komodo – an atomic swap platform, and with Plasma by the development team of Ethereum (ETH).
Litecoin (LTC) Price Today – LTC / USD
The value of Litecoin (LTC) is down by more than 14 percent over the past twenty-four hours, leaving the digital currency to trade at $51. The digital currency is still at the number 7th position with a market cap of $3.02 billion and a trading volume of $254.70 million over the past twenty-four hours.