Data from the IML – Litecoin Lightning Network Search Analysis Engine – shows that the network is registering steady growth. The latest figures show that the platform has 102 nodes. This means that there are more users on the Litecoin network and many are connecting the blocks and completing on-platform transactions.
This is an indication to Litecoin (LTC) investors that the Token is about to breakout to a bull cycle due to a high likelihood of LTC purchase demand surge in relation to selloffs.
Initial Stages Showed Slow Growth
The impact of the Lightning network was very low in the early stages of the deployment. The low demand was a result of Litecoin achieving higher speeds of block generation time already and this was seemingly sufficient to users. Additionally, the low interest around the high-speed network was due to the fact that the Lightning Network was very complicated to general users and only tech-savvy users could navigate the ecosystem.
However, there has been a steady increase is the number of user-friendly interfaces that have tools to assist non-tech savvy users to optimally use the “light” network. One example of these UI platforms is Zap.
Litecoin was deployed on GitHub on October 7th, 2011. The developer behind the platform was Charlie Lee- a former Coinbase Engineering Director and a Google employee at the time. Litecoin is a hard fork of the Bitcoin Core client and its signature characteristics are; a slightly modified GUI, an advanced scrypt hashing algorithm (instead of SHA-256), an increased maximum number of coins, and a lower block generation time of 2.5 minutes.
On the historical perspective, Litecoin has on greens and reds to Crypto market volatilities. However, there have been memorable moments that are defining this Blockchain in 2019. Firstly, In November 2013, Litecoin surged in market cap value and hit $1 billion after a day of 100% growth. Secondly, In May 2017, Litecoin Blockchain supported a transfer of 0.00000001 LTC between Zurich and San Francisco in a record low time of under 1 second. This was a result of the application of the Segregated Witness which is ideal for faster confirmation of on-platform transactions.
Since it is largely similar to Bitcoin but different on several ways. First, Litecoin supports faster transaction confirmation times of 2.5 minutes against Bitcoin’s 10 minutes. Secondly, scrypt algorithm in Litecoin requires complicated ASIC and FPGA mining chip devices which are very expensive in comparison to Bitcoin’s SHA-256 based mining chips.
Understanding Litecoin Nodes
Generally, nodes are points of intersections in Blockchain ecosystems. They can be a communication endpoint or a point of redistribution. In the Lightning Network, full Litecoin nodes validate the Blockchain by downloading a copy of it. It can also relay data that can be used in the Simplified Payment Verification (SPV) function. Hence, with the 102 nodes, the Lightning network is powerful enough to support more transactions.
According to the Litecoin community manager, Ilir Gashi, adoption of the Lightning Network was meant to offer merchants an opportunity to embrace Litecoin payments in their businesses. It seems that this vision is being realized as businesses such as the UFC 232 held on 29th December 2018 are starting to use LTC.