Litecoin (LTC) Smart Contracts Could Be Seeing a Surge With the Use of Abra App
Litecoin (LTC) – Most of the times we hear a lot of noise around Litecoin (LTC). Something completely unfair, due to the various functionalities and use cases this crypto-platform gives. In 2017 this platform made significant price gains after SegWit was successfully activated. Their founder, Charlie Lee, recently announced on his tweeter that a mobile wallet- Abra- will be using Smart contracts running on Litecoin’s network. We will now take a look on all the aspects of this smart contract integration and how it can add value both to the Abra app and Litecoin network at the same time.
The Growth of Litecoin’s Network
In the beginning of 2017, Litecoin’s platform was at a value of $5, but I guess when the taste of growth got into it they did not want to stop. On the 19th of December they reached their all time high of $366 and currently, although it went down like all the other cryptocurrencies, it’s trading at $161, but at least we can see it Is stable since it didn’t go lower than the $100 mark when the crash happened. This is over 3000% growth in 15 months. Growth that has to be attributed to the return of Charlie Lee to the “Litecoin Foundation”.
Lee has almost all the credit in making Litecoin’s network reach this level of acceptance, adoption and success. Prior to returning to Litecoin’s network, which was stagnating in development, he was working has a Director of Engineering at Coinbase and after he returned, Litecoin’s network started to evolve at a fast pace. Return that not only brought improvement to the development but it also increased the adoption rate among crypto users.
Litecoin is way faster, with 2,5 minutes block times, while Bitcoin’s is 10 minutes and also the mining fees are low compared to Bitcoin. So, at the end of the day, Litecoin proves to have a big number of advantages when compared to Bitcoin, especially if it is being used as a payment system.
Good relations are very important
Charlie Lee already mentioned that the relationship of Litecoin(LTC) and Bitcoin as Silver to Gold and that both networks have complemented each other in order to adopt new technologies and grow side by side. After Bitcoin, Litecoin is considered by many to be the most secure network, due to the strength of its network and the abundant hash power.
We have seen that, 2017 was a huge step towards success for both of this Networks since SegWit was activated in both of them, which enabled a smoother collaboration between them. At the same time, the Lightning network, built on top of a blockchain platform, can be used in both Litecoin(LTC) and Bitcoin. Although, SegWit must be enabled, for Lightening network to work properly. Enabling SegWit and Lightning network, together, the payment systems turn cheaper, faster and more efficient.
Keeping the Development as first objective
For Charlie Lee, the increase of usage, adoption and volume are more important than the price or market cap. For him, the growth in price is not has important has the growth in usage. Because, he explained that the price automatically follows if the usage is high.
To emphasize his belief, he announced that he sold all his coins so that any accusations about market manipulation turned invalid and to turn his focus 100% to the development.
For those asking, I care very little about marketcap rank. I care more about the chart on the left (# transactions) than the chart on the right (price). The Litecoin team and I are focused on the chart on the left. People need to actually use Litecoin. The price will follow. 📈 pic.twitter.com/MWemSjYKF8
— Charlie Lee [LTC⚡] (@SatoshiLite) January 4, 2018
The integration of Litecoin in Abra
So, that is it, smart contracts will be used by Abra on Litecoin’s network in about 2 weeks. Litecoin’s network was chosen over Bitcoin Cash and other crypto-platforms, due to the fact that it has a more stable price and better network security. This is the objective: make Abra app protocol function on Litecoin’s network as a smart contract and enable the trade of other currencies in the app.
How will this work?
20 cryptocurrencies and 50 fiat currencies are allowed to use on the Abra app. Which allows the users to trade crypto-fiat, fiat-crypto and crypto-crypto pairs. The app doesn’t allow the purchase of a particular cryptocurrency directly. It only lets you invest in LTC and afterwards gives you access to other cryptocurrencies, using a smart contract incorporated on Abra.
So, first you invest on LTC, then it will lock up the LTC at the market price of the coin you desire to trade. If that coin triples in value, you can sign and get back the profits on LTC to your wallet. Basically, you never own the coin you are trading, you just get exposure to price change of owning that coin.
The reason why Litecoin’s Network was chosen
Litecoin is considered to be less secure than Bitcoin, but it gives the user other advantages like lower fees and faster transactions.
Abra also chose Litecoin’s network over Bitcoin Cash or any other network because of their security and scalability features. But also, because we never find in this network crazy changes of value in transaction fees, which is very important to keep a crypto-platform trustworthy.
Bellow you can see another Charlie Lee tweet on this matter:
— Charlie Lee [LTC⚡] (@SatoshiLite) March 16, 2018
This are amazing news for Litecoin’s network. Accepting an exchange on their network, while other coins struggle to be accepted on exchanges.