Invitation For Community Discussion: Proposal of a Velvet Fork in Litecoin Code To Allow For Cross-Chain Communications and Scalability (NiPoPoWs)
On the evening of Litecoin's 9th birthday, it seems only fitting that the future of one of the most beloved and trusted cryptocurrencies also be discussed.
As many of you may already know, Charles Hoskinson, CEO of IOHK and creator of Cardano (ADA) approached Charlie Lee in early July with the proposal of performing a ‘Velvet Fork’ within the Litecoin code to allow for cross-chain communications, improved scalability and the ability for smart contracts.
Given the opportunity to research and provide input into the feasibility, pros, and cons of such an endeavor, I have had a number of informative exchanges with Charles’ team on not just what a Velvet Fork is, but also how it affects the base code and what it would mean potentially for the continued growth and utility of Litecoin as not just a store of value, but also as a means of exchange and method of settlement within smart contracts. They have also provided extensive information on NiPoPoWs and how it is utilized in cross-chain communications.
After approximately 3 months of reading some papers done by Dionysis Zindros of IOHK and others, I approached Charlie with my general thoughts, as well as some other members of the Litecoin Foundation.
In order to allow for good, constructive community feedback, I’d like to point out a few things to help set the stage.
WHAT IS A VELVET FORK?
There is always a potential issue with something called ‘velvet mining’ and ‘selfish mining’, as well as a small chance of double spending and Insidious Soft Forks. (https://bitcoinhub.co.za/guides-what-is-a-velvet-fork/)
4) Velvet mining is when miners who have upgraded to the velvet blocks earn a higher reward than those who don’t upgrade, more miners may not mine legacy blocks. Selfish mining is how miners may potentially find a way to ‘hide’ blocks from other miners, complete that block while others are still searching for it, then have a head start on the next block. Coindesk did an article on these two potential issues, along with other items I have provided above here: https://www.coindesk.com/soft-hard-velvet-new-fork-promises-crypto-upgrades-without-controversy
WHAT ARE NiPoPoWs?
WHAT OTHER DOCUMENTS ARE AVAILABLE ON THE SUBJECT?
Dionysis and Charles were also kind enough to provide other papers that help provide a larger picture, abeit a technical one not everyone will want to read, on everything that would go into such an endeavor. They are located here:
Charles Hoskinson’s YouTube video
Several papers for references here:
Earnest and open discussion on all aspects of such a move for Litecoin is needed.
On the surface, the rewards are enticing. An opportunity to allow for settlement payments in Litecoin in Ethereum, Cardano and other smart contract rich blockchains. This opens the door to many opportunities for a ‘currency’ focused cryptocurrency such as Litecoin.
It also opens the door to potential issues not presently plaguing the blockchain, albeit via a sidechain velvet fork.
I am hoping those within the Cardano community and IOHK will also chime in with tangible, unbiased (as much as possible) questions and answers, as the benefits to their blockchain may outweigh Litecoin’s.
The road to mainstream adoption is not the only thing at stake. The ability for both chains to move forward in a safe and calculated manner for their respective, individual chains should also be a part of the end goal. This ultimately isn't a miner or developer consensus decision, nor even really a Litecoin Foundation only decision, but rather one that can be decided ultimately through the questions, feedback and answers of a well educated, vibrant and global community.
Let the discussion begin!
Originally from Litecoin https://ift.tt/3nJaK5U