In the past five years, Litecoin has more than doubled, rising from around $4.30 to just under $9.50 after months of no movement. A worthy reason flashes out to be segregated witnesses (segwit), a protocol upgrade which smooths the path of the Lightning Network and, potentially, sidechains.
The activation process for segwit has been started and stated that it will be stalling for two months, but has now rush to just under 60% of the network’s hardware share. Well, it has been previously told to CNN by Litecoin’s biggest pool – F2Pool that they will signal for segwit, actually accelerated for doing on 1st April.
There’s not stoppage occurred in continuing to so signal, thus erasing any confusion on whether it was a fool’s prank or otherwise. As its threshold is 75%, now segwit need only around 15% to activate on litecoin.
There’s no such clearance about reaching to the threshold even. LTC1BTC’s has appeared in segwit’s against, but at near 60%, segwit activation appears much more likely than otherwise.
The bitcoin copycat will differentiate itself in many ways in the case of activating. Due to segwit’s 4:1 ratio, any future on chain capacity increases on litecoin would be very hard to achieve. That is, 4MB blocks allow for an attack vector of up to 16MB, while 8MB blocks allow for an attack vector of 32MB and so on.
Examine that some are contended even 1MB is too much and capacity should actually fall down to 300KB or so, making up for any sort of consensus on 4MB with an attack vector of 16 MB appears very unlikely.
On the different side, the usage of on-chain capacity be measured to less necessary once LN is implemented as it may pull out ordinary payments of $10-$20 from on-chain to LN, permitting for more on-chain space.
However, there is no shortening of the space for litecoin. In an entire day currency is barely used with just around 4,000 transactions. Two-calls-have-been-earned by litecoin, whether they use LN or transact on-chain.
Image Source:- Poloniex