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Charlie Lee Sums Up Litecoin’s 10 Years History. Part Four: SegWit Activation

Today is the day, Litecoin’s tenth anniversary. Congratulations to Charlie Lee and everybody concerned within the mission over time. We are exploring Litecoin’s historical past by way of the eyes of its creator. We lined its honest launch, the long-hard highway to exchanges adopting LTC, and we introduced the SegWit story. It’s time to end it. 

The final time, we launched Bitmain’s co-founder Jihan Wu. Reportedly, he was singlehandedly stopping SegWit adoption within the Bitcoin blockchain. Lee’s plan was to use Litecoin as a Testnet of kinds for SegWit. “I realized that here’s a chance for Litecoin to do something to help Bitcoin. If we can get SegWit on Litecoin, it can clear out all the FUD and prove that SegWit is safe and a good upgrade for Bitcoin.” To accomplish that, he had to persuade miners to facet with him and never with the producer of probably the most environment friendly ASICs.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

According to Coindesk, there was one other necessary incentive for Litecoin to undertake SegWit:

“Since SegWit could potentially pave the way for technologies that expand the value proposition of cryptocurrencies, the move toward accepting the upgrade has reignited excitement around the normally less-popular cryptocurrency. Litecoin’s price has nearly tripled since the end of March as a result.”

And this is the place at this time’s story begins.

LTCUSD price chart for 10/13/2021 - TradingView

LTC worth chart for 10/13/2021 on FX | Source: LTC/USD on TradingView.com

Charlie Lee Talks To Litecoin‘s Miners

During the tip of 2016 and the start of 2012, Lee talked to everybody. One of his first victories was (*10*), one other LTC ASIC maker,” to his facet. In this a part of the story, we will see how arduous Jihan Wu was enjoying. A “huge LTC Miner” was prepared to sign for SegWit in precept, however, since his machines have been in a farm managed by Jihan Wu, he was afraid that he may lose entry to low-cost electrical energy.

The goal was to get “75% of blocks signal for SegWit within a 2-week timeframe.” Easier stated than completed. LitecoinPool was the primary nice pool to facet with SegWit. Another large mining pool, F2pool, additionally promised to do it, however they didn’t immediately. This turned out to be nice for the trigger as a result of they offered a transparent sign that the market supported the SegWit transition. Lee narrates, “over the next month, F2pool actually flipped flopped. They would signal and then stop signaling. The market reacted accordingly. When F2pool started signaling, the price will go up, and vice versa.” 

To complicate issues, “Jihan wanted me to personally visit him and the miners in China to convince them about SegWit.” Lee didn’t just like the power-play, however that was nothing. As increasingly more miners signaled for SegWit, Jihan turned to the ace up his sleeve. There was a rumor that “Bitmain was building a ton of LTC miners and was going to turn them all on themselves to block the upgrade.

It was time for Charlie Lee to name within the large weapons.

The User Activated Soft Fork

Since each the miners and the market have been clearly signaling in help of SegWit, Charlie Lee felt he had the appropriate “to pull the UASF trump card out.” One of the wonders of decentralized organizations is that the customers can even activate a gentle fork. “If the majority of users and exchanges run the UASF code, SegWit will activate.” If that occurred, miners had to comply and undertake SegWit as properly.

The risk of a UASF was an excessive amount of to bear, so the miners agreed to meet with Charlie Lee on-line and work issues out. 

And the remainder is history, “On April 21, I met with Jihan, Innosilicon, and miners for over 8 hours IIRC. It was exhausting.“ They reached an settlement, this is the blog post asserting it. Among different issues, it says:

“We agree that protocol upgrade should be made under community consensus, and should not be unilateral action of developers nor miners. We advocate that Litecoin protocol upgrade decision should be made based on the needs of the users, through the roundtable meeting voting process, and activated by miner voting.”

Charlie Lee reflects, “Although this seems so bad for a decentralized cryptocurrency to have a closed door meeting to make decisions that affect the future of Litecoin, I felt like it was a compromise I’m willing to take. It’s better than an all out war between the miners and I.

On May tenth, 2017, SegWit was activated on Litecoin.

After that, just a few historic transactions occurred

“A lot of people have been saying that segwit is unsafe because segwit coins are “anyone-can-spend” and will be stolen. So lets put this to the check. I put up $1MM of LTC right into a segwit handle. You can see it’s a segwit handle as a result of I despatched and spent 1 LTC first to reveal the redeemscript.”

  • A number of months later, Bitcoin activated SegWit by way of a UASF. “It’s hard to know exactly how much Litecoin helped with this. I feel like it definitely has helped.
  • Days later, Charlie Lee and Strike’s Jack Mallers starred in the first Lightning Network request/ payment transaction on Litecoin. That man Jack Mallers has a means to get entangled in historic transactions, like this one, and this one.
  • That identical month, Lee did his first Atomic Swap transaction. “This shows how one can move coins between different chains in a decentralized way. It was a great proof of concept and paved the way for decentralized exchanges.
  • And later, he did another Atomic Swap however this time with Bitcoin.
  • And the subsequent month, Lee didthe first ever cross-chain swap between BTC and LTC via Lightning.” This time it was with the now world-famous Lightning Labs.

Related Reading | Binance Burns Record $600 Million BNB In Its 15th Quarter

Wasn’t that a tremendous, wonderful story? We discovered a lot. And, although we stated this was the final chapter within the Litecoin 10-year historical past, Charlie Lee has one other story to inform. Join us tomorrow for the notorious story of Charlie promoting all of his Litecoin. Another legendary second in crypto land.

Featured Image: Charlie Lee's image from this tweet | Charts by TradingView

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