Litecoin (LTC) and good contract platform Cardano (ADA) are exploring a “Velvet Fork” partnership that may unlock new options within the tenth largest cryptocurrency equivalent to cross-chain communications, good contract capabilities, and improved scalability.
In July, Cardano creator Charles Hoskinson invited Litecoin Basis managing director Charlie Lee to doubtlessly collaborate on the testing of cross-chain communications between the 2 cryptocurrencies.
@SatoshiLite it might be nice to do one thing collectively. I like the concept of testing cross chain communication between Litecoin and Cardano. We acquired a number of concepts and I am certain you guys do too
— Charles Hoskinson (@IOHK_Charles) July 7, 2020
Since then, the 2 groups have been in communication, says Litecoin Basis challenge director David Schwartz.
“Given the chance to analysis and supply enter into the feasibility, professionals, and cons of such an endeavor, I’ve had plenty of informative exchanges with Charles’ workforce on not simply what a Velvet Fork is, but additionally the way it impacts the bottom code and what it might imply doubtlessly for the continued progress and utility of Litecoin as not only a retailer of worth, but additionally as a method of change and methodology of settlement inside good contracts.”
In accordance with Schwartz, a velvet fork is a protocol improve mechanism carried out on a cryptocurrency code; it’s neither a tough fork nor smooth fork, notes Schwartz, as a result of it doesn’t require majority consensus. Miners will be capable of proceed to serve on the Litecoin community whether or not they select to improve or not.
With the velvet fork improve, Schwartz explains how Litecoin can be utilized in good contract platforms by utilizing Non-Interactive Proofs of Work (NiPoPoWs).
“It permits blockchains to work together like API’s, enabling a cryptocurrency like Litecoin for use inside a sensible contract in a blockchain that has good contract capabilities (Ethereum, Cardano, and so forth.). Principally the good contract succesful blockchain validates the NiPoPow used inside the Litecoin sidechain that has had the velvet fork added to permit for this motion to happen.”
Whereas the velvet fork partnership guarantees a number of advantages to Litecoin, Schwartz highlights that the partnership ought to “make sense when it comes to safety and integrity of the coin.”