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- Cardano and Litecoin are investigating a brand new cooperation to determine cross-chain communication, good contracts compatibility and elevated scalability.
- This might be made attainable by a so-called ‘velvet fork’, however additional investigations should first be accomplished.
As Crypto Information Flash has already reported, Cardano’s founder, Charles Hoskinson, already launched the concept of discussing a more in-depth partnership with Litecoin in July this 12 months. There are a number of attainable utility fashions, that are mentioned intimately in a brand new article by Litecoin Basis Director David Schwartz.
@SatoshiLite it will be nice to do one thing collectively. I like the concept of testing cross chain communication between Litecoin and Cardano. We acquired plenty of concepts and I am certain you guys do too
— Charles Hoskinson (@IOHK_Charles) July 7, 2020
Cross-chain communication and good contracts compatibility
Schwartz explains that Cardano and Litecoin may unlock new options by a velvet fork and that the participation of the miners within the community is totally voluntary. This might enhance cross-chain communication, good contract compatibility and scalability in the long run. He describes that the far-reaching implications for each cryptocurrencies should be additional investigated:
Given the chance to analysis and supply enter into the feasibility, professionals, and cons of such an endeavor, I’ve had quite a lot of informative exchanges with Charles’ crew on not simply what a Velvet Fork is, but in addition the way it impacts the bottom code and what it will imply doubtlessly for the continued progress and utility of Litecoin as not only a retailer of worth, but in addition as a method of alternate and technique of settlement inside good contracts.
In response to Schwartz, a velvet fork is neither a tough fork nor a gentle fork. With a velvet fork, new code is added to the bottom, just like a protocol improve, however no majority consensus is required. All miners on the community can proceed to work as regular, no matter whether or not they have applied the improve or not. They will resolve for themselves whether or not they need to take part:
It’ll permit shoppers that improve to the brand new guidelines to nonetheless be suitable with these that don’t, and provides no rule modifications to the consensus layer.
Schwartz additional outlines that his outcomes are notably promising within the analysis space of NiPoPoWs (Non-Interactive Proofs of Work). NiPoPoWs permit blockchains to work like an API, permitting cryptocurrencies corresponding to Litecoin inside a wise contract on a blockchain to work together with good contracts of different blockchains corresponding to Cardano or Ethereum:
Principally the good contract succesful blockchain validates the NiPoPow used throughout the Litecoin sidechain that has had the velvet fork added to permit for this motion to happen.
Through the use of NiPoPoWs, so-called SPV wallets may also be used. They solely have to obtain the block header and never the entire blockchain. Schwartz calls upon the Litecoin group in addition to Cardano to additional discover these concepts with the intention to discover and check additional prospects collectively.
Velvet Fork additionally gives potential for different cryptocurrencies
Velvet forks may also be utilized by different initiatives and, resulting from their versatile deployment, provide a sensible software for implementing protocol upgrades with out having to realize a majority consensus. In response to Schwartz, the scope of utility shouldn’t be restricted to Litecoin or Cardano, however all the ecosystem of cryptocurrencies can profit in the long term.