Recap of Litecoin in 10 Formation and Development
Yesterday was Litecoin’s 10th anniversary. Congratulations to Charlie Lee and everyone who has been involved on the project over the years. To celebrate, the creator of Litecoin has reviewed some of the most memorable moments of the decade since the network launched. In the previous 3 installments, Bitcoin Magazine summarized the fair introduction of Litecoin, the long thorny road to the stock market listing, and the SegWit story.
Charlie Lee (left) and Jihan Wu (right)
After part 3 about the co-founder of Bitmain, Jihan Wu, decided against the introduction of SegWit for the Bitcoin blockchain, Lee plans to use Litecoin as a test network (test network) for SegWit.
“I realized that this is an opportunity for Litecoin to do something for Bitcoin. If we can successfully integrate SegWit into Litecoin, it will remove all FUD and prove SegWit is safe, a good upgrade for Bitcoin. ”
To get there, Lee had to convince the miners to take his side, not the most efficient ASIC producer.
Additionally, another source revealed that there is another major motivation for Litecoin to take over SegWit:
“With SegWit having the potential to pave the way for technologies that expand the value proposition of cryptocurrencies, the move to accept an upgrade that is causing a stir in crypto is generally less common. As a result, the price of LTC has almost tripled since the end of March. ”
Charlie Lee convinces Litecoin miners
Between late 2016 and early 2017, Lee spoke to people. One of his first victories was to bring “Innosilicon, another LTC ASIC manufacturer” to his side.
“Innosilicon immediately accepted SegWit. You agree with me that this is the best way to go. And they convinced some of their customers to support SegWit. One of their customers is the giant LTC miner. He owns about 5% of the hashrate. It is very helpful to have his support. ”
In this part, we can see how hard Jihan Wu played. Basically, a “giant LTC miner” is ready to signal SegWit, but since his machines are on a farm controlled by Jihan Wu, he is afraid of losing access to electricity.
The goal is to get “75% block signal for SegWit in 2 weeks”. But easier said than done. LitecoinPool is the first large pool to partner with SegWit. Another large mining pool, F2pool, also promised to do so, but they didn’t do it right away. This is proving to be very good as they provide a clear signal that the market is preferring to switch to SegWit. lee told:
“The next month, F2pool suddenly changed its mind. They give a signal, but then stop. The market also responded. When F2pool starts signaling, the price increases and vice versa.
More complicated: “Jihan wanted me to visit him and the miners in China personally to convince them of SegWit. Lee doesn’t like power games, but that’s nothing. As more and more miners signaled SegWit, Jihan turned to the trump card, “Rumors say that” Bitmain is producing tons of LTC mining equipment and will use anything to block the upgrade. “
This forced Charlie Lee to use his technique.
User activates soft fork
With both miners and the market signaling for SegWit, Charlie Lee sees the right to “draw the trump card of the User Activated Soft Fork (UASF)”. One of the wonders of decentralized organizations is that users can also enable soft forks. “When the majority of users and exchanges run UASF code, SegWit is activated.” In this case, the miners must also comply with and accept SegWit.
The UASF threat really scared them, so the miners agreed to meet Charlie Lee online and sort things out.
“On April 21st, I met Jihan, Innosilicon and Miners for over 8 hours at IIRC. It’s exhausting. “They finally reached an agreement and announced the above Blog.
“We agree that protocol upgrades should be done by community consensus and not be a unilateral action by developers or miners. We support the decision that a Litecoin protocol upgrade should be carried out based on user needs through a round table voting process and triggered by a miner vote. ”
For a decentralized cryptocurrency, having to meet behind closed doors to make decisions that will affect the future of Litecoin is a bad thing, but I think it’s a compromise I’m willing to make. It’s still better than an all-out war between miners and me. ”
On May 10, 2017, SegWit was activated on Litecoin.
A few historical transactions later
On the same day, the renowned Bitcoin developer Christian Decker completed the first Lightning Network transaction.
A few days later, Lee posted an “anonymous $ 1 million bounty on the SegWit address,” saying:
“Many people have said that Segwit is not safe because“ anyone can spend and steal Segwit coins ”. So let’s test that. I deposited 1 million LTC on a Segwit address. You can see it’s a Segwit address because I sent and spent 1 LTC first to reveal the redemption script. ”
A few months later, Bitcoin activated SegWit via UASF.
“It’s hard to say how much Litecoin helps with this, but I think it definitely helps.”
A few days later, Strike’s Charlie Lee and Jack Mallers began making the first Lightning Network request / payment transaction on Litecoin.
That same month, Lee made his first atomic swap.
“This shows that it is possible to move coins decentrally between different chains. It’s a great proof-of-concept consensus and paved the way for a decentralized exchange. ”
Next, he performed another Atomic Swap, but this time with Bitcoin.
The following month, Lee performed “the first cross-chain swap between BTC and LTC via Lightning.” This time with Lightning Labs, which is now known worldwide.
We learned a lot from Litecoin’s 10 year journey. Although it was said in the previous section that this is the final chapter in Litecoin’s 10 year history, Charlie Lee has a different story. Follow us to discover another legendary moment in Kryptoland: the sensational story of Charlie Lee who sells all of his Litecoins.
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According to Newsbtc