Charlie Lee – the founder of Litecoin (LTC) claimed that the Lightning network can use Litecoin (LTC) as a sidechain of the BTC bitcoin through atomic swaps. Continuous transfers promise to be safer, cheaper and faster. Currently, to exchange other digital currencies with Bitcoin (BTC), you need to place an order with digital currency trading platforms that correspond to sales and purchase orders.
A completed transaction includes the buyer, the seller and a third-party intermediary such as Coinbase or Binance.
Atomic swaps enable and simplify cross-chain trading without the need for an intermediary. For example, Mr. John can exchange his ten Litecoin token for 0.1 Bitcoin (BTC) of Mr. Nelson directly, P2P, without Coinbase or Binance. Atomic swaps use HTLC (hash time-locked contracts) to ensure that both parties comply with their conclusion of the agreement once they have sent their transactions to their respective blockchains.
Both sides need a key to show proof of payment and release their exchanged tokens. Both parties are connected via payment channels from the Lightning network, enabling real-time transactions that eliminate delays in Bitcoin's blockchain and brokers.
A growing network of blockchains that atomically exchange digital currencies could also cut the risk of trading centralized trading platforms that are subject to attacks, failures and hacks. The next level of speed and scalability of the digital currency will be addressed by the Komodo development team – an atomic exchange platform and with Plasma from the Ethereum development team (ETH).
Litecoin (LTC) Price today – LTC / USD
The value of Litecoin (LTC) has fallen by more than 14 percent over the past twenty-four hours, leaving the digital currency to trade at $ 51. The digital currency is still at 7th place with a market capitalization of $ 3.02 billion and a trade volume of $ 254.70 million in the last twenty-four hours.