Litecoin (LTC) Smart Contracts Could Be Seeing a Surge With the Use of Abra App

Litecoin (LTC) Smart Contracts Could Be Seeing a Surge With the Use of Abra App

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.

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:

This are amazing news for Litecoin’s network. Accepting an exchange on their network, while other coins struggle to be accepted on exchanges.

Leave a reply

0 Comments

There are no comments on this post.

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.