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


As we speak is the day, Litecoin’s tenth anniversary. Congratulations to Charlie Lee and everybody concerned within the undertaking over time. To have a good time, we’re exploring Litecoin’s historical past via the eyes of its creator. We coated 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 kinds for SegWit. “I spotted that right here’s an opportunity for Litecoin to do one thing to assist Bitcoin. If we are able to get SegWit on Litecoin, it will possibly filter out all of the FUD and show that SegWit is protected and a very good improve for Bitcoin.” To perform that, he needed to persuade miners to aspect with him and never with the producer of probably the most environment friendly ASICs.

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Based on Coindesk, there was one other essential incentive for Litecoin to undertake SegWit:

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

And that is the place right this moment’s story begins.

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

Charlie Lee Talks To Litecoin‘s Miners

Through the finish of 2016 and the start of 2017, Lee talked to everybody. One in every of his first victories was to get “Innosilicon, one other LTC ASIC maker” to his aspect. On this a part of the story, we are able to see how onerous Jihan Wu was enjoying. A “large 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 may lose entry to low cost electrical energy.

The target was to get “75% of blocks sign for SegWit inside a 2-week timeframe.” Simpler mentioned than executed. LitecoinPool was the primary nice pool to aspect with SegWit. One other massive 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 supplied a transparent sign that the market supported the SegWit transition. Lee narrates, “over the following month, F2pool really 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 increasingly more 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 massive weapons.

The Person Activated Mushy Fork

Since each the miners and the market have been clearly signaling in help of SegWit, Charlie Lee felt he had the proper “to drag the UASF trump card out.” One of many wonders of decentralized organizations is that the customers also can activate a smooth 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 properly.

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 remaining 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 saying it. Amongst different issues, it says:

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

Charlie Lee displays, “Though this appears so unhealthy for a decentralized cryptocurrency to have a closed door assembly to make selections that have an effect on the way forward for Litecoin, I felt prefer it was a compromise I’m keen 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, just a few historic transactions happened

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

  • A number of months later, Bitcoin activated SegWit via a UASF. “It’s onerous 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/ fee transaction on Litecoin. That man Jack Mallers has a technique to get entangled 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 approach. It was an awesome 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 following 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 an incredible, superb story? We discovered a lot. And, regardless that we mentioned 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 offered all of his Litecoin.

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

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