Most crypto enthusiasts believe the Lightning Network will offer new solutions to the digital currency space. As an off-chain technology, that can significantly increase Bitcoin (BTC) transaction speed and price; the Lightning Network has some positives to bring to the table. However, a section of analysts claims that Litecoin (LTC) rather than Bitcoin (BTC) will benefit more from its launch.
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About the Lightning Network
The Lightning Network can be defined as an off-chain payment channels system designed to complete direct deals between users. It is powered by smart contracts. The Lightning Network can work on Bitcoin (BTC) blockchain or on any other. It can be used to exchange multiple coins cross-chain because of the Atomic Swaps technology.
How is the Lightning Network Going to Affect Bitcoin (BTC)?
The majority of users consider Bitcoin (BTC) as a store of value instead of a payment method due to the high fees plus slow processing time. However, the coming of the Lightning Network will make Bitcoin (BTC) cheaper and more efficient, automatically giving it a competitive edge over other altcoins. The technology will eliminate miner verification step and increase transaction speed. Off-chain deals will be instantly completed.
The Lightning Network can help in reducing transaction fees and making Bitcoin’s micro-payments more realistic. Every transaction will be strictly based on smart contracts were the system would control every process.
How is the Lightning Network Going to Affect Litecoin (LTC)?
Litecoin (LTC) is regarded as silver in a world where Bitcoin (BTC) is seen as gold. LTC is originally Bitcoin’s fork designed to offer faster and cheaper deals. Skeptics claim that the technology will disintegrate Litecoin (LTC) as crypto investors will prefer the faster and cheaper Bitcoin (BTC) as famous and more trusted. If BTC can solve its scalability issues, there will be no need for other currencies that can perform similar tasks.
Optimists, on the other hand, argue that Litecoin (LTC) “has the capacity to survive as a secondary blockchain. Charlie Lee, Litecoin’s founder, claims that LTC will always be cheaper and faster than Bitcoin. Insisting that the Lightning Network will contribute to the wider adoption of Litecoin.