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Litecoin And Cardano Consider The Possibility Of Joint Implementation Of The “Velvet Fork” - Binaryx
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Litecoin And Cardano Consider The Possibility Of Joint Implementation Of The “Velvet Fork”

The idea of ​​cross-chain communication between Litecoin and Cardano could lay the foundations for a new collaboration in the crypto space. What benefits can a “Velvet fork” bring to Litecoin?

Litecoin one step closer to collaboration with Cardano

Talk about a possible interconnection collaboration between Litecoin and Cardano that started back in July. In his blog, Litecoin CEO David Schwartz said that the initiative to introduce the “Velvet fork” into the Litecoin code belongs to the creator of Cardano, Charles Hoskinson. The code update is seen as a potential take for Litecoin to the next level by providing new functionality for network members.

Charles Hoskinson addressed the Litecoin team on Twitter, saying:

Together we can make a worthwhile project. We already have a solution on how to implement the idea of ​​interconnecting Litecoin and Cardano.

In his blog, the managing director of Litecoin shared that he had been closely studying the pros and cons of this collaboration for 3 months. But so far communication between the teams is conducted only at the level of discussion, without any specific technical actions.

How will Litecoin change after the transfer to the “Velvet Fork”?

The “Velvet fork” is an alternative to more common protocol code update mechanisms such as hard fork and soft work. The introduction of this tool can solve the issue of Litecoin scalability by providing the technical possibility of inter-network settlements between LTC and ADA.

Also, the strong point of the Velvet Fork is its painless implementation to all network participants. This fork does not require a majority consensus. Miners can independently decide whether to upgrade or not. If they do not agree with the new rules of the protocol, it will not affect their work in any way because they will be able to serve the Litecoin community “the old fashioned way”.

The introduction of the “Velvet fork” will allow Litecoin to expand its options by supporting smart contracts, the proof of which is verified by the NiPoPoWs tool. In the future, LTC can interact with smart contracts of other blockchains, including Ethereum, Cardano. Also, this tool allows network members to work with SPV wallets, in which you only need to add block headers and not their entire chain.

Both ADA and LTC instruments are top assets, ADA shows gradual growth, and LTC stands out with fairly confident stability. Cardano is currently trading at 10 cents, while Litecoin is trading at around 47 USD. Both instruments are attractive from an investment point of view. The predicted price of Cardano is 15 cents, and LTC is about 65-70 USD in the next six months, if we, of course, maintain a “bullish attitude” in the entire cryptocurrency market during this period.