$ 62 million Litecoin transactions sent for fifty cents: the potential of cryptographic transactions

On 9 November, the Litecoin (LTC) the news site litecoin.com reported one of the the highest transactions to date on the LTC network, valued at 1,159.005.90779568LTC, or about $ 62 million USD. Apart from the huge amount of money transferred, the transaction gained attention because it was settled for only fifty cents.

The 1M + Litecoin transaction worth $ 62 million was sent for just 50 ¢ #Litecoin #Bitcoinhttps://t.co/UrQ6LyGJeg

– Litecoin.com (@LitecoinDotCom) November 9, 2018

Cutting costs

In the world of conventional currency, bank commissions can reach $ 45 or higher per transaction and can be held pending confirmation by intermediaries. Other cryptographic resources such as Ripple's XRP are trying to build a brand based on the evasion of the existing cross-border payment infrastructure, which may be the most expensive of all.

LTC funds were made in a series of transfers that seem to have consolidated the crypt under a single multi-signature address. This address is now referred to as one of the richest LTC addresses on the network. The theory proposed by Litecoin.com is that a large entity, possibly an exchange, owns it and has transferred the funds there as part of itswallet holdings:

"… it is very likely a cold exchange portfolio that is used to securely store funds that are in an offline exchange away from potential attackers.The transition to a multi-signature address would provide the owner (s) a more security since any transaction would need to be signed by multiple parties because unlike legacy addresses there are more private keys for the address. "

Transaction fees for crypts are going down at all levels, with other massive transfers of criptos like Bitcoin to be conducted the equivalent of $ 0.10 at the time of this writing. The average transaction fee for BTC is still somewhere around $ 0.36, according to Live Bitcoin's news, but it's still much better than $ 25- $ 55 last year.

Trying to exploit the potential for decentralization

Apart from the security problems, the transaction costs and the time necessary to make transactions in the crypt are two of the biggest obstacles to the general approval of cryptocurrencies.

If taxes continue to decline and transactions become more efficient, cryptography could become a viable option for transferring even very large sums of money. Developments such as the Lightning network they are approaching reality, even for the notoriously clunky BTC, and products like Xcurrent and Xrapid are trying to get big banks on the scrambled train.

The ease with which cryptography can be transferred has also led to charitable organizations that branch out to countries such as Africa, where they are trying to put the currency in the hands of people without financial infrastructure. Crypto's decentralized nature makes all of this simple but also makes security a problem, as less surveillance means more opportunities for fraud.