On July 12th, Charlie Lee, the veteran computer scientist, and creator of the popular digital currency Litecoin, tweeted about the Lightning Network [LN] and how it can be made easier for LTC/BTC traders to create a liquid market on the platform.
He propagated that users running the LN on Litecoin or Bitcoin can:
- Set an exchange price.
- Act as makers to earn a fee [Maker is one who provides liquidity to a market].
- Act as takers and automatically swap the two cryptocurrencies with the maker node via LN [Taker takes liquidity; buys/sells limit orders].
He also extended the idea that Litecoin will be easier to trade on the LN, in cases where Bitcoin transaction speed is too slow, and the fee is too high. Charlie Lee further added:
“Open an LTC payment channel on chain cheaply and quickly, then atomically swap for BTC if/when you need to. This can be done in one step using submarine swaps!”
rawtx, a Twitter handle working towards the adoption of Bitcoin, replied:
“combined with a central orderbook, it could potentially replace crypto-to-crypto exchanges while the user keeps their funds at all times, no way for an exchange to be hacked and lose funds. I can’t believe so many people are ignoring all the potential applications of LN.”
The Litecoin Lightning Network node was released earlier this year. A guide was also released for Mac users, who could create the Litecoin LN node directly by copy-pasting commands from the guide.
Moreover, the Litecoin creator has also been an advocate for the activation of SegWit on Litecoin and Bitcoin multiple times. He believes that the protocol has the potential of solving issues related to scalability. It was activated on Litecoin last year.
In the current market scenario, LTC price has ranged from a high of $86.51 [8th July] to a steep of $75.33 [12th July] during the past week. At press time, LTC is trading at a weekly low of $75.96 with a market cap of about $4.35 billion and a 24-hour trading volume of $254.5 million. The weekly change in price has gone down to -4.38%.