Coingate announced that Litecoin’s Lightning Network (LN) is finally ready for deployment. Getting its very own Lightning Network on CoinGate is a significant milestone for Litecoin.
The Lightning Network is a second-layer protocol that facilitates the transaction of Bitcoin and Litecoin. It has been adopted as a solution to a wide range of Bitcoin’s shortcomings – it makes transacting using Bitcoin (and Litecoin, for that matter) faster, lighter, more secure and more adaptable.
The Lightning Network will ensure that Bitcoin not only survives its inadequacies, but also thrives.
According Charlie Lee, the Father of Litecoin, the concept and mechanism of LN is in sync with the vision projected by Satoshi Nakamoto in Bitcoin’s whitepaper titled “A Peer-to-Peer Electronic Cash System”. In another interview, Lee said that the payments on the Lightning Network are peer-to-peer and can work even when the parties or peers participating are not connected to the Internet.
Implications For Litecoin
Litecoin is a nimbler version of Bitcoin; it is straightforward and quicker. However, unlike Bitcoin, which also functions as an investment asset, Litecoin is mainly used as a means of payment.
According to Lee, the network will boost the crypto’s popularity across the world and make it more acceptable to a broader range of merchants. The adoption of the Lightning Network for Litecoin is expected to give it even greater flexibility and to boost speed, privacy and security for transactions.
What does it mean for BTC?
The recent adoption of the Lightning Network can change the relationship and create competition between BTC and Litecoin.
The Lightning Network will make BTC easier to use; transactions will be faster and more secure, and merchants will be capable of adopting BTC as a means of payment. It will see BTC’s main utility shift from investment to everyday utility, just as is the case with Litecoin. Competition, however, may be in favor of Litecoin as, unlike BTC, it adopts significant upgrades much faster.