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Cardano and Litecoin are planning to launch a velvet fork that would allow interoperability between them.
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Discussions on the subject have been ongoing since mid-July this year.
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If approved, network participants will be able to choose whether to implement the update or not.
Interoperability between different crypto projects has recently been a major topic of discussion in the crypto industry. Many projects have found a way to work on different blockchains by flipping their coins on said chains. The greatest examples of this include Wrapped Bitcoin (WBTC) and several versions of Tether (USDT).
Now, Cardano and Litecoin plan to bridge the gap between their two chains by throwing a velvet fork.
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Officials from Cardano and Litecoin discuss an interoperability plan
Both ADA and LTC experienced a noticeable price increase during the new rally. The new plan could help the two further raise their prices, according to Litecoin Foundation director David Schwartz.
Schwartz spoke during the recent Litening webinar series, revealing that Litecoin and Cardano have been discussing the matter since mid-July, when Cardano’s Charles Hoskinson reached out to Litecoin’s Charlie Lee with the proposal.
The two agreed that a velvet fork would allow communication between networks without the need for majority consensus.
Network participants would not be obliged to implement the update
Schwartz noted that the method would be applied in conjunction with non-interactive Proof-of-Work or NiPoPoW. This means that individual participants in the Litecoin network will be able to choose whether they wish to adopt the changes that the Velvet Fork would introduce or not.
The blocks validated with the update will still be fully compatible with those without. In this way, users can choose the approach they prefer without the obligation to change or the consequences for not doing so.
The velvet fork has already been tested in a Bitcoin Cash (BCH) test network, with quite positive results. The biggest challenge would be to get community approval, although at this time there is no reason to believe the community would be against the idea.
