Litecoin Alternative To Bitcoin Considering Transaction Costs?
- Posted on Apr 13, 2017
Being the leader in the field can make the other players feel a bit crushed. Bitcoin is dominating the cryptocurrency field but users are beginning to consider other cryptocurrencies like Litecoin for another reason. The fees!
The bitcoin fees are rising and this caused the open-source market OpenBazaar to check for other online currency options. The design lead Mike Wolf has begun to work out the details of using a multi-currency platform for the users to ease the burden of the bitcoin fees.
Await the feedback
OpenBazaar is an online platform for buying and selling and it does not have accounts, restrictions, or fees. Once they layer multiple currencies into the payment platform there is hope that the new currencies will ease the fees. The design team is waiting for feedback from the users whether the idea is good and if there will be a positive effect due to this. They also want to know which coins will be of most use.
Of the 443 votes cast on the poll, “Should OpenBazaar open its doors to multiple currencies?” 87% went in favor of ‘Yes’. Wolf said that depending totally on bitcoin will not be entirely practical. The accent should be to keep the OpenBazaar fees as low as possible, he said.
Feasibility of using many cryptocurrencies
In the video presentation, he showed one vendor that accepted many different cryptocurrencies such as Zcash, Litecoin, and bitcoin. They also accepted Monero, Dash, and Ethereum. He also wanted Litecoin developers to help him with the integration process.
Response from Litecoin
In response, Charlie Lee, the Litecoin creator said that he arranged for a developer to work with OpenBazaar. Lee said that interoperability with various other cryptocurrencies should help in bringing the costs down. The amount of Litecoins was now over $10 million.
He wanted SegWit to operate on both the bitcoin and the Litecoin. Since SegWit has good transaction malleability it could help online transactions. With the present 1MB size of the blocks, it is possible to build both the Lightning network on top of Litecoin and SegWit on bitcoin and service over 500 million users.
Lightning network allows two networks to interoperate and has higher fees for bitcoin. So, users will have to opt for the Litecoin since this has lower fees and then go back to bitcoin. This was a hypothetical use case and one would not know until it was fully operational whether this kind of dealing will prove economical or not, said Lee.