The final time we checked with Litecoin, its creator Charlie Lee left Coinbase to concentrate on his personal challenge. The mission at hand was implementing SegWit within the Litecoin blockchain, which is less complicated stated than accomplished. This story is as thrilling as they arrive. It has twists and turns and it ends with a bang. By means of the next story, we’ll study lots about consensus. Probably the most mysterious facets of the cryptocurrency area is how choices are made. Are you able to study by means of a sensible instance?
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However earlier than we get into it, let’s let Mr. Lee himself define SegWit:
“SegWit stands for Segregated Witness. It’s principally an improve that might separate out the signature (i.e. witness) from the transaction.”
By extracting the signature, transactions occupy much less area. So, every block can maintain extra transactions. SegWit successfully will increase the block dimension restrict of the blockchain.
That being stated, let’s get again to Litecoin ’s 10-year historical past.
Why Did Charlie Lee Needed Litecoin To Implement SegWit?
On the time, within the Bitcoin community, miners have been blocking SegWit. “Mainly the worry was that after SegWit is activated, miners can steal any cash despatched to SegWit addresses. Anybody technical sufficient is aware of that this was not true.” So, Lee’s plan was to implement SegWit on Litecoin to point out everybody that the improve was protected, and thus assist clear up the FUD that surrounded it.
Mainly the worry was that after SegWit is activated, miners can steal any cash despatched to SegWit addresses. Anybody technical sufficient is aware of that this was not true. It was not attainable for miners to steal cash that method. Sadly Bitcoin testnet was not helpful right here.
— Charlie Lee (@SatoshiLite) October 8, 2021
Bitcoin’s Testnet wasn’t useful on this case as a result of its cash are nugatory, so it doesn’t present an incentive for dangerous actors to assault it. It couldn’t “check out the sport concept of the blockchain.” On Litecoin, on the other hand, there could be “incentives for individuals to assault it. If miners can steal hundreds of thousands from anyone-can-spend cash, they might.” Apart from serving to Bitcoin beat the FUD, Charlie Lee had other reasons to implement SegWit in his challenge.
“So it’s possible you’ll surprise why I’m pushing for SegWit. Litecoin doesn’t have a block dimension downside. That’s proper, and SegWit isn’t just a block scaling resolution. I might even say block scaling is only a facet good thing about SegWit. The primary repair is transaction malleability, which might enable Lightning Networks (LN) to be constructed on high of Litecoin.”
LTC worth chart for 10/12/2021 on Gemini | Supply: LTC/USD on TradingView.com
The Basis Of The Litecoin Basis
A fast subsection, as a result of this collection is about Litecoin’s historical past. Whereas the SegWit story advanced, Warren Togami stepped down as lead developer. Shaolin Fry joined the crew particularly “to assist us get SegWit activated on Litecoin.” Loshan and Thrasher additionally joined to assist with the code.
Xinxi Wang (@TheRealXinxi) and Franklyn Richards (@LitecoinDotCom) joined me as Director to the Litecoin Basis and we had Loshan (@loshan1212) and Thrasher (@thrasher_au) as builders engaged on the code.
Folks began to develop into enthusiastic about Litecoin once more!
— Charlie Lee (@SatoshiLite) October 8, 2021
On the identical time, they created The Litecoin Basis with Xinxi Wang, Franklyn Richards, and Charlie Lee himself as Administrators.
Enter The Unhealthy Man Of The Film
It’s time for the Litecoin and SegWit story to satisfy that legendary interval often known as The Blocksize Warfare. On the time, mining was a comparatively centralized affair and Bitmain was the… important participant. They produced the “most effective ASICs” and miners have been closely incentivized to vote with them… or else.
“The co-founder of Bitamin, Jihan Wu,is a giant supporter of scaling Bitcoin onchain,” Lee informs. Which means, he was in opposition to SegWit and in opposition to The Lightning Community as scaling options. Jihan Wu was within the camp of merely forking Bitcoin to extend block sizes, a notion that the group ended up rejecting. Nonetheless, on the time, Wu was singlehandedly stopping SegWit adoption in Bitcoin. And he had nice affect over Litecoin too.
Sadly that turned very contentious. As a result of Jihan had a whole lot of affect, he single-handedly was in a position to block SegWit activation on Bitcoin. And since Bitmain additionally made probably the most environment friendly Litecoin miners, he had a whole lot of affect on Litecoin miners additionally.
— Charlie Lee (@SatoshiLite) October 8, 2021
So, how may Charlie Lee and his band of misfits circumvent this big impediment blocking their method? “The distinction between Bitcoin and Litecoin is me,” he said. “Bitcoin is extra decentralized. There’s nobody to come back out to talk on what their imaginative and prescient of Bitcoin is.” Lee may and did promote his help of SegWit among the many miners and tried to seduce a few of them to vote his way. “Anyhow, this was what I got down to do. I met and talked to many miners all through the tip of 2016 to early 2017.”
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We all know that his plan labored, nevertheless it was lots more durable than anticipated. Jihan Wu had the sources and affect to render his efforts out of date, plus he had an ace up his sleeve. How did Charlie Lee proceeded? How did he make SegWit on Litecoin occur and who stepped as much as the plate to assist him? Discover all of that and extra in tomorrow’s subsequent and last episode of Litecoin ‘s 10-year historical past.
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