Forks are usually created as the team behind the new project believes they have a stronger solution to the first one’s technical issues, or a more powerful use case in mind. Litecoin Cash is a famous example of this as it split from its original platform promising many improved features to its holders.
One of the promised features was related to the coin price itself. The current LTC price is around $68.79, which is a significant turn from what it used to be. Did the hard fork have something to do with it?
Read on to learn a few things about Litecoin’s hard fork and how it affects the fifth-largest cryptocurrency on the market.
Hard forks are large changes to the blockchain that make all previous transactions invalid. They function similarly to upgrading your system software, which then “forks” or splits the existing data.
Bitcoin introduced the world to decentralization, which cryptocurrencies uphold. Traditional currencies’ value can be controlled by governments based on the economy, but decentralized cryptocurrencies are different.
Initially, when Bitcoin was big news in the media, it met with a lot of skepticism. Some people even thought it might be some kind of fraud. But then its value went up to an unprecedented high and people started to believe that it was a good investment. All these speculations were proved wrong and now, ten years later, it’s still going strong.
As an open-source program, the cryptocurrency was invented so that developers from anywhere could create their own currencies using the Bitcoin code. Now there are thousands of different cryptocurrencies available on the market.
Decentralization of cryptocurrency means that newly launched currencies have little to no regulation. A few developers could come up with their own currency and control the protocol.
Litecoin Cash (LCC) is a cryptocurrency platform that forked from preexisting Litecoin. The hard fork occurred in February 2018, in a similar way to Bitcoin’s hard fork. After the coin was introduced, coin holders were advised that they would receive 10 Lite Coins through the creation of each Lite cash coin.
What Does the Fork Offer?
Litecoin fork offered a more secure and efficient transaction process, as well as the ability to generate more coins through mining. It supported the SHA256 mining hardware, which is faster and smoother for miners.
Litecoin Cash will run alongside Litecoin—they are not replacing one another. Litecoin Cash, the same as Litecoin, uses LCC tokens as a way to cryptocurrency transactions. For every user that wants to move over to the new fork, they will be given 10 LCC for each preexisting LTC coin currently in their ownership.
The restricted supply of coins is an issue for all cryptocurrencies. Litecoin Cash has a total of 840 million coins, which is the main reason why it attracts lots of miners. In comparison to this, Litecoin has only 84 million coins. Besides that, the mining hardware that was used in Litecoin Cash is the PoW algorithm, allowing the use of application-specific integrated circuits that are now obsolete.
Litecoin Cash also boasts a fast speed and reasonable transaction fee. With a target block time of 2.5 minutes, it is four times faster than Bitcoin. Furthermore, the fee for LCC is only 90% of that for Bitcoin, making it much more affordable.
LCC Had a Promising Start
When LTC was launched, it was valued at $1.40 which was a great success. Later, the initial value increased nearly six times to its all-time high of $9.25. Any currency has to have a good start to be successful, and LCC had a very good one. Despite cryptocurrencies’ notorious volatility, the foundation that was laid at the start was good. This helped attract investors willing to take a chance.
Long-term investors could find Litecoin Cash to be a smart investment option because it has a long track record of being able to weather periods of high volatility. If you’re willing to take risks, your investment could end up paying off down the road. This article is a basic guide in the LTC and LCC world, so make sure you do research before making your initial investment.