On February 18 Litecoin underwent a hard fork, which went somewhat unnoticed amid news of hacker’s attacks and the struggling market. The original Litecoin was split and the world saw the birth of Litecoin Cash.
On February 18 Litecoin underwent a hard fork, which went somewhat unnoticed amid news of hacker’s attacks and the struggling market. The original Litecoin was split and the world saw the birth of Litecoin Cash. We believe it was for good.
But first things first, Litecoin itself was developed by Charlie Lee in 2011 with the sole purpose to be the faster and lighter version of bitcoin. And while it didn’t solve all of bitcoin’s problems, Litecoin improved several key points: blocks are generated faster, it uses better mining algorithm, and it has the ability to produce more coins.
Now the reason for the creation of Litecoin Cash was similar – launching a better version of an already established currency, which has room for improvement. The hard fork happened on block 1371111 of the original Litecoin blockchain. As expected, both Litecoin and Litecoin Cash co-exist and everyone who holds Litecoins on block 1371111 will receive 10 LCC for each LTC owned. Those who do not want LCC will have their funds unchanged as prior to the fork.
As a result of the forking, LCC mining uses the SHA256 PoW hashes for a number of reasons. A great number of mining rigs already support SHA256. Miners who already have SHA256 devices do not need updates or new hardware kits. In addition, the original LTC mining algorithm remains Scrypt. Litecoin Cash is four times faster than bitcoin as it generates new block every 2.5 minutes, while bitcoin needs 10 minutes for this action.
Similarities between LCC and LTC continue with the fact that they have the same blockchain size – 13GB, while bitcoin’s is 145GB. This enables faster and cheaper transaction rates as it is believed LCC is 90% economical when compared to its original network.
The first 24 blocks were mined at minimum difficulty after the fork took place. However, early LCC miners won’t have a significant advantage because the algorithm adjusts over time with the help of DarkGravity V3, which is also seen in Dash.
It is important to note that neither Charlie Lee nor his team is involved in the fork. A group of independent developers stated they are “not associated or affiliated with Charlie Lee or any of the Litecoin team in any way,” but instead just “using the Litecoin Cash name simply because it has become customary in recent months for a coin which forks a blockchain to prefix its name with the name of the coin being forked.”
Undoubtedly, this is not the first and definitely not the last forking the crypto community sees. Bitcoin was also forked several times and the outcome was Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond. Ethereum too was forked with the emerge of Ethereum Classic and Ethereum. The question is, are these alternative version appealing to the traders, and are they justifying the initial promises. Well, time is gonna tell.