Everything you need to know about Litecoin Hard Fork
Litecoin Fork (Litecoin Cash)
Well, a hard fork is a radical change in the Blockchain that makes all the previous blocks or transactions invalid. The things can be compared to the system up-gradation, from old software to the new one, thus this event creates a split or a fork.
Bitcoin laid the foundation of the concept of decentralization. Fiat or traditional currencies are under the influence of governments who could control its price or value as per the economy. Cryptocurrencies, on the other hand, are decentralized and are not under the influence of any third party or an organization.
When bitcoin was launched on mainstream media, there were speculations that it might be a scam. Then when its value raised all-time high to thousands of dollars, people regarded it as a bubble that will burst. All these speculations were proved wrong and even after a decade, bitcoin is still going on.
The cryptocurrency was invented as an open-source program; this means that the developer from all over the world had the opportunity to build their own currencies on the code of bitcoin. There are now thousands of cryptocurrencies available in the crypto market.
Since the cryptocurrencies are decentralized, there is not much regulation to take control over newly launched currencies. A small team of developers could come up with their own currency having their own protocol.
The need for Forks:
The bitcoin protocol is constantly being updated over time. Changes like bitcoin halving impact the overall system. Over time the overall equipment and energy need to mine bitcoins is increasing. The mining hardware is expensive and requires a huge source of electricity.
Bitcoin operates on the core concept of decentralization, so the people involved in the network feel in control over the network. If some updates to bitcoin are such that they are not liked by the users, they could develop their own updated version and integrate into the blockchain. If enough people are happy with their updated version they could use that updated “fork”.
There are several forks launched since the launch of Bitcoin. The main purpose behind launching or developing these bitcoins is that forks aim to keep the network centralized and uniform for all. With the overall needs for mining hardware increase, the system was getting monopolized by some big authorities As they build specialized warehouses to take part in the mining process. They are thus increasing their chances of mining more and more bitcoins. The forks are created to overcome this issue.
Litecoin – The base for Litecoin Fork
As per market capitalization, Litecoin is the third-largest cryptocurrency. Bitcoin, XRP is at the top. The transaction done on the Litecoin network are with units of Litecoin. The first miner to successfully mine in the process will be awarded 50 Litecoin. The value and reward will keep on decreasing like bitcoin.
What is Litecoin Fork
Litecoin or Litecoin cash is a cryptocurrency platform that is launched by a hard fork of preexisting Litecoin. Litecoin’s first hard fork was on 18th February 2018 or Litecoin block 1371111 and will result in the creation of Litecoin Cash, as was the case with Bitcoin’s hard fork August 2017. While the holders have been advised that they will get 10 Litecoin Cash coins through the creation of Litecoin.
What does Litecoin Fork Offer?
Every fork made on cryptocurrencies claims to solve some kind of problem or to improve the existing system. Litecoin fork aims to offer improved and secure transaction process. The currency also offered to enhance the system able to generate more coin through the mining process. The mining hardware SHA256 is supported, which is better and efficient for mining process.
Litecoin Cash will exist in parallel to the original Litecoin project. Just like the Litecoin, the Litecoin cash uses LCC token as the cryptocurrency by the system. The users willing to migrate to the fork will be awarded 10LCC for each LTC coin.
One of the problems with cryptocurrencies is the limited supply of bitcoins. The supply of Litecoin cash is way more than Litecoin. The Litecoin number of coins, i.e. 84 million, is way more than LCC total being 840 million. This will attract a lot of miners.
The mining hardware used in the Litecoin cash uses proof-of-work algorithm enabling miners to use obsolete application-specific integrated circuits.
The overall speed and transaction fee are also good for Litecoin cash. The target block time is 2.5 minutes that delivers transaction speed that is 4x faster the bitcoin. The fee is cheaper, 90% then bitcoin.
A good start
When Litecoin cash was launched, it took a great start and was valued initially at $1.40 that increased to nearly six times and went to high time of $9.25. The start is very important for any currency, and it was a good one for Litecoin cash.
Although the cryptocurrencies are known for their volatility nature still the start is good, and it laid a good foundation for the currency. This good start helped the currency to get the investors who were keen to invest.
How to get Litecoin Cash
If you hold a Litecoin, it is important for you to store the Litecoin in private wallet and not on an exchange. To take control of private keys, it is a vital step in the process. If there is ledger being used it is advised to move from ledger to Litecoin desktop wallet.
One of the biggest drawbacks faced by the Litecoin cash was it was not so welcomed by exchanges, and it wasn’t listed in any big exchanges in the start. This made the progress slow for the developers. Earlier the Litecoin cash was listed in YoBit.
The name of project Litecoin may be a drawback for the currency. The creator of Litecoin spoke about the decision of naming the fork Litecoin cash and said it was reminiscent of the polarizing bitcoin cash fork.