The hard forks are a craze that has assaulted the world of cryptocurrency, gaining massive support in some curves, while it has hit strong opposition in others. A rigid fork is a permanent block-off blockchain in which a group of developers, miners and users agree to create and use a completely new blockchain while leaving an existing one. It can happen for various reasons. People may notice that the original blockchain suffers from security vulnerabilities that can not be resolved by a soft fork. Sometimes disagreements occur on the way the blockchain and all of the above is under development.
Sometimes these problems can be solved by a fork . Soft forks are slight divergences from the original blockchain path, which occurs when new rules and a new chain are introduced. These rules will try to solve the problems with the original blockchain and create a better product. Some original chain nodes will update to accept new rules while others will remain unchanged. The original chain will continue to function and accept information from both types of nodes, while the new chain will only work with updated ones.
From here, one of two things will happen: both nodes will adopt the updated rules that will help the new blockchain reach a predetermined hash rate benchmark; the updated nodes will become the consensus majority and will vote for the new blockchain replacing the old one completely. Or the nodes will not accept the new rules in fairly good numbers, leading to the old rules maintained and the soft fork failure. Holders of the original cryptocurrency retain their original tokens without receiving any new currency.
Whenever a rigid fork occurs, the nodes instantly pass to the new blockchain, abandoning and stopping their support for the old chain. Nodes that pass to the new rules can no longer provide information to the original blockchain. Holders of the original blockchain cryptocurrency are rewarded with the crypt token of the new blockchain, proportional to their original token properties. The market and the way in which the new rules rule decide whether the rigid fork has been successful or not.
Hard forks, soft forks – what kind of fork is Litecoin Cash?
Sometimes we see a new project born from the concepts, ideas and code of an old project. Litecoin Cash is exactly this, a so-called fork software whose developers decided to copy the way Litecoin was born. A fork software is not actually a fork; it works more like a clone of sorts. Litecoin itself was created as a Bitcoin fork software. It is a completely new project that has taken the ideas, software, codes and concepts used by Bitcoin and applied them on themselves. While he was copying Bitcoin in a way, it was still a completely new and different cryptocurrency. Among other differences it uses a Scrypt PoW algorithm and has faster block generation speeds than its role model.
Litecoin Cash did something similar, as it is a hard clone of Litecoin. The demerger occurred on February 18, 2018 in block 1371111 of the original blockchain of Litecoin. Each holder of Litecoin at the time of the fork had to receive 10 LCC for an LTC. Key features of Litecoin Cash include:
- Litecoin Cash will be managed using the Bitcoin SHA256 algorithm as opposed to Litecoin's Screco algo.
- The use of Bitcoin's SHA256 algorithm provides potential miners for Litecoin Cash, with the SHA256 proof of work algorithm that allows Litecoin Cash mining using old and outdated specific integrated circuits. application ("ASIC") Bitcoin mining hardware.
- Litecoin Cash's total supply is 840 million LCC coins, much higher than Litecoin's 84 million coins.  Litecoin Cash has a different adjustment of difficulty in Litecoin, with Litecoin Cash considering the difficulty of data mining adjusted to each block, using the DarkGravity V3 algorithm of Evan Duffield of Dash, compared to about 3.5 days of Litecoin.
- Replay attack protection and new address prefix to avoid confusion and inter-chain problems.
- Litecoin Cash transaction fees are 90% lower than Litecoin ex.
- A blockchain which is a fraction of the Bitcoin blockchain (13 GB compared to 145 GB)
The idea for it is presumed to have occurred when its creators mentioned how to rebuild Litecoin to use hashing algorithms SHA256. While at the beginning they were joking, they later realized that most of the existing SHA256 hardware currently in circulation is outdated due to network congestion. They noted that such hardware should be perfect for extracting a lower amount of throughput, a smaller blockchain-sized coin like Litecoin. The main problem was the Scrypt mining algorithm used by Litecoin, which requires different mining hardware than compatible SHA256 coins. So the team decided to make a hard fork of Litecoin and Litecoin Cash was born.
Litecoin vs. Litecoin Cash
The group that announced and crossed the fork suffered a severe blow when the team of Litecoin, led by its creator Charlie Lee, denied the involvement in the project, while calling Litecoin forks "scams" .
In a subsequent interview with Coindesk, he further confirmed his anti-bifurcated position by saying: "It confuses people to think that Litecoin is dividing." The Litecoin community has no interest They are just some people who are trying to make money quickly, and calling it Litecoin gives them some legitimacy. "
Anyone who is connected to Litecoin is currently asking what this fork will actually bring to Litecoin itself. With a real fork, a part of the community, including the developers responsible for the coding and miners responsible for the hash power and responsible users, uses the net well is taken from the original blockchain. This can result in a decrease in quality and a migration of the percentage of hash / user base that potentially, if enough people switch to the new currency, causes a 51% attack form. However, the developers of Litecoin Cash have never been part of the Litecoin team, so the quality of the coding will not diminish over time (since they never left the team in the first place). Miners can choose to start extracting the new currency, but they will need different hardware to extract it, which means they probably should also stay on Litecoin's blockchain. Finally, users will not be incentivized to sell their Litecoin for Litecoin Cash, as a 10-fold supply of LCC is destined to become forever a cheaper currency than LTC. Another thing to consider is that if Litecoin Cash turns out to be a scam that could have a lasting negative effect on the entire Litecoin label. At the moment it seems unlikely that Litecoin Cash will derive the Litecoin project and will have a fair chance to grow up on its own.
🏆 Here is our list of the best litecoin wallets.
The currency is currently available on Yobit, Mercatox, SouthXchange, TradeSatoshi and CryptoBridge. It is not the most impressive list of exchanges, but there are rumors that HitBtc is considering adding it to its offered tokens
The price reached an ATH immediately after the "fork" "announced, reaching over 7 USD. Since then it has undergone a rapid decline and is currently a flat coating at 0.16 USD. At this time LCC trades at $ 0.032 per currency and has a market cap of just over $ 19 million.
The future of Litecoin Cash
Litecoin Cash can be called many things: fork Bitcoin, fork Litecoin, a project in its own right; any of these terms will be correct. Although its developers did not promise much, except "hey here is a coin you can use with your old hardware", there is a sense of disappointment in the project and in the price of its token.
There are a couple of reasons why you put the project in its current position. LCC and the LCC Foundation are not connected to the Litecoin team and have been called directly as a scam by the latter, which has certainly influenced the price. All the noise of the scam was not helped by the LCC Foundation by asking users to provide their private keys to verify their suitability for the initial distribution of tokens. While it was later discovered that it was a communication error that had been resolved, there remained a bad taste in many portfolios of potential buyers. The project's github page has not undergone significant code updates for some time, and while some people do not like developers coming out of the code every day, some updates could definitely help. Its massive offering of 840 million coins will certainly keep the price below the LTC price forever.
Ultimately, a token is worth as much as people need it. Currently, there is not much use of Litecoin Cash. There are too few markets, portfolios and applications to make it thrive in any way. While an important moment was achieved when a pizza was purchased exclusively using Litecoin Cash is a token that does not seem to be ready to become an important currency on the market.
CaptainAltcoin Post-guest authors and authors may have or less an interest acquired in any of the projects and activities mentioned. None of CaptainAltcoin's content is an investment advice nor a replacement for the recommendations of a certified financial planner.