Last time we checked with Litecoin, its creator Charlie Lee has left Coinbase to concentrate on your own project. The mission at hand was to implement SegWit on the Litecoin blockchain, which is easier said than done. This story is as exciting as it comes. It has twists and turns and it ends on a bang. We will learn a lot about consensus through the following story. One of the most mysterious aspects of the cryptocurrency space is how decisions are made. Are you ready to learn from a practical example?

Related reading | Charlie Lee sums up Litecoin’s 10 year history. Part 1: Fair launch

But before we get into that, let’s Mr. Lee himself defines SegWit:

“SegWit stands for Segregated Witness. It’s basically an upgrade that would separate the signature (i.e. the witness) from the transaction. “

By extracting the signature, transactions take up less space. So each block can hold more transactions. SegWit effectively increases the block size limit of the blockchain.

However, let’s get back to Litecoin’s 10 year history.

Why did Charlie Lee want Litecoin to implement SegWit?

At that time, miners blocked SegWit on the Bitcoin network. “Basically, there was a fear that once SegWit is activated, miners could steal any coins sent to SegWit addresses. Anyone technical enough knows this wasn’t trueSo Lee’s plan was to implement SegWit on Litecoin to show everyone that the upgrade was safe and thus help educate the FUD that surrounded it.

Basically, there was a fear that once SegWit is activated, miners could steal any coins sent to SegWit addresses. Anyone technical enough knows this wasn’t true. It was not possible for the miners to steal coins in this way. Unfortunately, Bitcoin Testnet wasn’t useful here.

– Charlie Lee (@SatoshiLite) October 8, 2021

Bitcoin’s testnet was not helpful in this case as its coins are worthless and therefore offer no incentive for bad actors to attack it. It couldn’t “Test the blockchain game theory.” On Litecoin, on the other hand, there would be “Incentives for people to attack them. If miners can steal millions of coins that anyone can spend, they would.“Charlie Lee not only helped Bitcoin beat the FUD, but had it tooOther reasons for implementing SegWit in his project.

“You may be wondering why I am pushing for SegWit. Litecoin doesn’t have a block size problem. That’s right, and SegWit isn’t just a block scaling solution. In fact, I’d say block scaling is just a side benefit of SegWit. The main solution is transaction malleability, which would allow Lightning networks (LN) build on Litecoin. “

LTC price chart for 10/12/2021 on Gemini | Source: LTC / USD on TradingView.com

The establishment of the Litecoin Foundation

A short subsection because this series is about the history of Litecoin. As the SegWit story unfolded, Warren Togami stepped down as lead developer. Shaolin Fry has specially joined the team “to help us activate SegWit on Litecoin. ”Loshan and Thrasher also came to help with the code.

Xinxi Wang (@TheRealXinxi) and Franklyn Richards (@LitecoinDotCom) joined me as director of the Litecoin Foundation and we had Loshan (@ loshan1212) and Thrasher (@thrasher_au) as developers working on the code.

People started getting excited about Litecoin again!

– Charlie Lee (@SatoshiLite) October 8, 2021

At the same time they founded the Litecoin Foundation with Xinxi Wang, Franklyn Richards and Charlie Lee themselves as directors.

Enter the villain of the movie

It’s time the Litecoin and SegWit history meets this legendary time known as The Blocksize War. At the time, mining was a relatively centralized affair and Bitmain was the … main player. They produced the “most efficient ASICs“And miners were strongly motivated to vote with them … or else.

Bitamin’s co-founder Jihan Wu is a big proponent of scaling Bitcoin onchainLee informs. That is, he was against SegWit and against The Lightning Network as scaling solutions. Jihan Wu was in the camp of simply pushing Bitcoin to increase the block size, a notion that the community ultimately rejected. At that time, however, Wu single-handedly stopped introducing SegWit into Bitcoin. And he also had a huge impact on Litecoin.

Unfortunately, this became very controversial. Since Jihan had a lot of influence, he was able to single-handedly block the SegWit activation on Bitcoin. And because Bitmain also made one of the most efficient Litecoin miners, it also had a lot of influence on Litecoin miners.

– Charlie Lee (@SatoshiLite) October 8, 2021

How could Charlie Lee and his group of outsiders bypass this huge obstacle that was blocking their way? “The difference between Bitcoin and Litecoin is mehe said. “Bitcoin is more decentralized. There is no one to speak of their vision of Bitcoin. ”Lee could and did his support of SegWit among the miners and tried to seduce some of them to tune his way. “At least that’s what I had planned. I met and talked to a lot of miners from late 2016 to early 2017.

Related reading | New to Bitcoin? Learn to trade crypto with the NewsBTC trading course

We know his plan worked, but it was much more difficult than expected. Jihan Wu had the resources and influence to make his efforts obsolete, and he had an ace up his sleeve. How did Charlie Lee go about it? How did he make SegWit possible on Litecoin and who sat down at the table to help him? All of this and more can be found in tomorrow’s next and final episode of Litecoin’s 10-year history.

Selected image by InstagramFOTOGRAFIN from Pixabay – Charts from TradingView

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