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Charlie Lee Sums Up Litecoin’s 10 Years Historical past. Half 4: SegWit Activation

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Immediately is the day, Litecoin’s tenth anniversary. Congratulations to Charlie Lee and everybody concerned within the mission through the years. To have fun, we’re exploring Litecoin’s historical past by means 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 complete 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 make use of Litecoin as a Testnet of types for SegWit. “I noticed that right here’s an opportunity for Litecoin to do one thing to assist Bitcoin. If we will get SegWit on Litecoin, it may well filter out all of the FUD and show that SegWit is protected and a superb improve for Bitcoin.” To perform that, he needed to persuade miners to facet with him and never with the producer of essentially the most environment friendly ASICs.

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In accordance with Coindesk, there was one other vital incentive for Litecoin to undertake SegWit:

“Since SegWit may doubtlessly pave the way in which for applied sciences that develop the worth proposition of cryptocurrencies, the transfer towards accepting the improve has reignited pleasure across the usually less-popular cryptocurrency. Litecoin’s worth has almost tripled for the reason that finish of March because of this.”

And that is the place in the present day’s story begins.

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

Charlie Lee Talks To Litecoin‘s Miners

In the course of the finish of 2016 and the start of 2017, Lee talked to everybody. Certainly one of his first victories was to get “Innosilicon, one other LTC ASIC maker” to his facet. On this a part of the story, we will see how arduous Jihan Wu was enjoying. A “enormous LTC Miner” was able to sign for SegWit in precept, however, since his machines have been in a farm managed by Jihan Wu, he was afraid that he would possibly lose entry to low-cost electrical energy.

The target was to get “75% of blocks sign for SegWit inside a 2-week timeframe.” Simpler stated than carried out. LitecoinPool was the primary nice pool to facet with SegWit. One other huge 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 subsequent month, F2pool truly flipped flopped. They might sign after which cease signaling. The market reacted accordingly. When F2pool began signaling, the value will go up, and vice versa.” 

To complicate issues, “Jihan needed me to personally go to him and the miners in China to persuade them about SegWit.” Lee didn’t just like the power-play, however that was nothing. As an increasing number of miners signaled for SegWit, Jihan turned to the ace up his sleeve. There was a rumor that “Bitmain was constructing a ton of LTC miners and was going to show all of them on themselves to dam the improve.

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

The Person Activated Gentle Fork

Since each the miners and the market have been clearly signaling in help of SegWit, Charlie Lee felt he had the correct “to tug the UASF trump card out.” One of many wonders of decentralized organizations is that the customers may activate a comfortable fork. “If nearly all of customers and exchanges run the UASF code, SegWit will activate.” If that occurred, miners needed to comply and undertake SegWit as nicely.

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

And the remainder is historical past, “On April 21, I met with Jihan, Innosilicon, and miners for over 8 hours IIRC. It was exhausting.“ They reached an settlement, that is the weblog put up asserting it. Amongst different issues, it says:

“We agree that protocol improve ought to be made beneath neighborhood consensus, and shouldn’t be unilateral motion of builders nor miners. We advocate that Litecoin protocol improve choice ought to be made based mostly on the wants of the customers, by means of the roundtable assembly voting course of, and activated by miner voting.”

Charlie Lee displays, “Though this appears so dangerous for a decentralized cryptocurrency to have a closed door assembly to make choices that have an effect on the way forward for Litecoin, I felt prefer it was a compromise I’m prepared to take. It’s higher than an all out warfare between the miners and I.

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

After that, a number of historic transactions occurred

“Lots of people have been saying that segwit is unsafe as a result of segwit cash are “anyone-can-spend” and could be stolen. So lets put this to the check. I put up $1MM of LTC right into a segwit deal with. You may see it’s a segwit deal with as a result of I despatched and spent 1 LTC first to disclose the redeemscript.”

  • A number of months later, Bitcoin activated SegWit by means of a UASF. “It’s arduous to know precisely how a lot Litecoin helped with this. I really feel prefer it positively has helped.
  • Days later, Charlie Lee and Strike’s Jack Mallers starred in the first Lightning Community request/ cost transaction on Litecoin. That man Jack Mallers has a technique to become involved in historic transactions, like this one, and this one.
  • That very same month, Lee did his first Atomic Swap transaction. “This exhibits how one can transfer cash between totally different chains in a decentralized method. It was an amazing proof of idea and paved the way in which for decentralized exchanges.
  • And later, he did one other Atomic Swap however this time with Bitcoin.
  • And the subsequent month, Lee didthe primary ever cross-chain swap between BTC and LTC by way of Lightning.” This time it was with the now world-famous Lightning Labs.

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Wasn’t that a tremendous, superb story? We realized a lot. And, though we stated this was the final chapter within the Litecoin 10-year historical past, Charlie Lee has one other anecdote to inform. Be a part of us tomorrow for an additional legendary second in crypto land. The notorious story of when Charlie Lee bought all of his Litecoin.

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



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