Transaction fees for Litecoin are reduced 10 times. This tax reduction could act as a push to help adoption grow in the case of using the "medium of exchange".
– Litecoin.Com (@LitecoinDotCom) 19 October 2018
Transaction fees are normally set by the market, but developers make things easier for users by setting a minimum default rate in the software. Currently they set it to 0.001 LTC / kB, but the new version will automatically reduce the default commissions for all those who upgrade to the new client.
Not the only cryptocurrency that becomes cheaper
Last week, Monero transactions fell by almost 96% after the "bullet-proof" network upgrade, which reduced the size of the block by more than 90%. The hard fork also allows the use of confidential transactions. So far the update has kept its promises by reducing the transaction fees to two cents on the network.
Medium of exchange for Layer 2
Today a Litecoin transaction averages almost 10 cents in price. It may not seem like much (to send value all over the world on a decentralized, censorship-resistant and immutable blockchain) but tax reduction could help allow the use of Litcoin on level 2 networks (EG lightning or liquid) .
Earlier this month, Coin Rivet brought you the story of how Charlie Lee used a combination of Litecoin and the Lightning network to buy "instant" Amazon gift cards.
Making it easier to integrate and interrupt interoperable Layer 2 protocols could create many new cases for Litecoin, such as the use of cross atom swaps to power new forms of decentralized applications .
With the recent listing on Gemini, Litecoin is now part of a select group of three currencies (including Bitcoin and Ethereum) to get a list of all major cryptographic exchanges.
For the complete CoinRivet guides on cryptocurrencies, blockchain technology and exchanges, click here.