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Charlie Lee Sums Up Litecoin ‘s 10 Years Historical past. Half Three: SegWit Intro

10/12/2021

The final time we checked with Litecoin, its creator Charlie Lee left Coinbase to deal with his personal challenge. The mission at hand was implementing SegWit within the Litecoin blockchain, which is simpler stated than accomplished. This story is as thrilling as they arrive. It has twists and turns and it ends with a bang. By the next story, we’ll study loads about consensus. One of the vital mysterious elements of the cryptocurrency area is how selections are made. Are you able to study via a sensible instance?

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However earlier than we get into it, let’s let Mr. Lee himself outline SegWit:

“SegWit stands for Segregated Witness. It’s mainly an improve that may separate out the signature (i.e. witness) from the transaction.”

By extracting the signature, transactions occupy much less area. So, every block can maintain extra transactions. SegWit successfully will increase the block dimension restrict of the blockchain.

That being stated, let’s get again to Litecoin ’s 10-year historical past.

Why Did Charlie Lee Wished Litecoin To Implement SegWit?

On the time, within the Bitcoin community, miners have been blocking SegWit. “Principally the worry was that when SegWit is activated, miners can steal any cash despatched to SegWit addresses. Anybody technical sufficient is aware of that this was not true.” So, Lee’s plan was to implement SegWit on Litecoin to point out everybody that the improve was protected, and thus assist clear up the FUD that surrounded it.

Principally the worry was that when SegWit is activated, miners can steal any cash despatched to SegWit addresses. Anybody technical sufficient is aware of that this was not true. It was not potential for miners to steal cash that method. Sadly Bitcoin testnet was not helpful right here.

— Charlie Lee (@SatoshiLite) October 8, 2021

Bitcoin’s Testnet wasn’t useful on this case as a result of its cash are nugatory, so it doesn’t present an incentive for unhealthy actors to assault it. It couldn’t “take a look at out the sport principle of the blockchain.” On Litecoin, then again, there can be “incentives for folks to assault it. If miners can steal tens of millions from anyone-can-spend cash, they might.” Apart from serving to Bitcoin beat the FUD, Charlie Lee had different causes to implement SegWit in his challenge.

“So it’s possible you’ll marvel why I’m pushing for SegWit. Litecoin doesn’t have a block dimension drawback. That’s proper, and SegWit isn’t just a block scaling answer. I’d even say block scaling is only a aspect advantage of SegWit. The primary repair is transaction malleability, which might enable Lightning Networks (LN) to be constructed on high of Litecoin.”

LTC value chart for 10/12/2021 on Gemini | Supply: LTC/USD on TradingView.com
The Basis Of The Litecoin Basis

A fast subsection, as a result of this sequence is about Litecoin’s historical past. Whereas the SegWit story advanced, Warren Togami stepped down as lead developer. Shaolin Fry joined the staff particularly “to assist us get SegWit activated on Litecoin.” Loshan and Thrasher additionally joined to assist with the code. 

Xinxi Wang (@TheRealXinxi) and Franklyn Richards (@LitecoinDotCom) joined me as Director to the Litecoin Basis and we had Loshan (@loshan1212) and Thrasher (@thrasher_au) as builders engaged on the code.

Folks began to change into enthusiastic about Litecoin once more!

— Charlie Lee (@SatoshiLite) October 8, 2021

On the similar time, they created The Litecoin Basis with Xinxi Wang, Franklyn Richards, and Charlie Lee himself as Administrators.

Enter The Dangerous Man Of The Film

It’s time for the Litecoin and SegWit story to satisfy that legendary interval often called The Blocksize Struggle. On the time, mining was a comparatively centralized affair and Bitmain was the… predominant participant. They produced the “most effective ASICs” and miners have been closely incentivized to vote with them… or else. 

“The co-founder of Bitamin, Jihan Wu,is an enormous supporter of scaling Bitcoin onchain,” Lee informs. Which means, he was in opposition to SegWit and in opposition to The Lightning Community as scaling options. Jihan Wu was within the camp of merely forking Bitcoin to extend block sizes, a notion that the neighborhood ended up rejecting. Nonetheless, on the time, Wu was singlehandedly stopping SegWit adoption in Bitcoin. And he had nice affect over Litecoin too.

Sadly that turned very contentious. As a result of Jihan had numerous affect, he single-handedly was capable of block SegWit activation on Bitcoin. And since Bitmain additionally made one of the vital environment friendly Litecoin miners, he had numerous affect on Litecoin miners additionally.

— Charlie Lee (@SatoshiLite) October 8, 2021

So, how might Charlie Lee and his band of misfits circumvent this large impediment blocking their method? “The distinction between Bitcoin and Litecoin is me,” he stated. “Bitcoin is extra decentralized. There’s nobody to come back out to talk on what their imaginative and prescient of Bitcoin is.” Lee might and did promote his help of SegWit among the many miners and tried to seduce a few of them to vote his method. “In any case, this was what I got down to do. I met and talked to many miners all through the top of 2016 to early 2017.” 

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We all know that his plan labored, nevertheless it was loads more durable than anticipated. Jihan Wu had the sources and affect to render his efforts out of date, plus he had an ace up his sleeve. How did Charlie Lee proceeded? How did he make SegWit on Litecoin occur and who stepped as much as the plate to assist him? Discover all of that and extra in tomorrow’s subsequent and remaining episode of Litecoin ‘s 10-year historical past.

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