Charlie Lee, a photo

Right now is the day, Litecoin’s 10th anniversary. Congratulations to Charlie Lee and everybody concerned within the venture over time. To have a good time, we’re exploring Litecoin’s historical past by the eyes of its creator. We coated its truthful launch, the long-hard street 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 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 probably filter out all of the FUD and show that SegWit is protected and an excellent improve for Bitcoin.” To perform that, he needed to persuade miners to aspect 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 necessary incentive for Litecoin to undertake SegWit:

“Since SegWit may probably pave the best way for applied sciences that increase 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 for the reason that finish of March in consequence.”

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

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 aspect. On this a part of the story, we are able to see how exhausting Jihan Wu was taking part in. A “large LTC Miner” was able to sign for SegWit in precept, however, since his machines had 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 executed. LitecoinPool was the primary nice pool to aspect 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 following month, F2pool truly flipped flopped. They’d sign after which cease signaling. The market reacted accordingly. When F2pool began signaling, the worth will go up, and vice versa.” 

To complicate issues, “Jihan wished 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 huge weapons.

The Consumer Activated Mushy Fork

Since each the miners and the market had been clearly signaling in help of SegWit, Charlie Lee felt he had the appropriate “to drag the us trump card out.” One of many wonders of decentralized organizations is that the customers may activate a tender fork. “If the vast majority of customers and exchanges run the us 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 history, “On April 21, I met with Jihan, Innosilicon, and miners for over eight 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 needs to be made underneath group consensus, and shouldn’t be unilateral motion of builders nor miners. We advocate that Litecoin protocol improve resolution needs to be made primarily based on the wants of the customers, by the roundtable assembly voting course of, and activated by miner voting.”

Charlie Lee reflects, “Though this appears so dangerous 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 10th, 2017, SegWit was activated on Litecoin.

After that, a couple of historic transactions came about

  • On THE SAME DAY, a infamous Bitcoin developer accomplished the first Lightning Network transaction.
  • A number of days later, Lee posted an nameless “$1m bounty on a SegWit deal with:” The textual content says:

“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 take a look at. 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 a UASF. “It’s exhausting 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 Network request/ payment transaction on Litecoin. That man Jack Mallers has a method to get entangled in historic transactions, like this one, and this one.
  • That very same month, Lee did his first Atomic Swap transaction. “This reveals how one can transfer cash between completely different chains in a decentralized approach. It was an incredible proof of idea and paved the best way for decentralized exchanges.
  • And later, he did another Atomic Swap however this time with Bitcoin.
  • And the following month, Lee didthe primary ever cross-chain swap between BTC and LTC through 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, although we stated this was the final chapter within the Litecoin 10-year historical past, Charlie Lee has one other anecdote to inform. Be part of us tomorrow for one more 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