LTC Nears Cardano Partnership And Latest “Velvet Fork”: Report

LTC nears Cardano partnership in order to both work on the “velvet fork.” The fork will add several features including cross-chain fund settlement, improved scalability, and smart contracts so let’s read more in our latest Litecoin news.

It is not certain that Litecoin will go forward with the plans as Litecoin nears Cardano partnership to work on the cross-chain interoperability according to the blog post from David Schwartz, the Project Director of the LTC Foundation. Schwartz said that Charles Hoskinson, the creator of Cardano invited Charlie Lee to collaborate on the Blockchain interoperability issue back in July. Hoskinson wrote on twitter:

@SatoshiLite it would be great to do something together. I love the idea of testing cross chain communication between Litecoin and Cardano. We got a lot of ideas and I'm sure you guys do too

— Charles Hoskinson (@IOHK_Charles) July 7, 2020

Since then, Schwartz had a few other conversations with the Cardano team on what the collaboration will bring to the community. He says that the fork will allow cross-chain payment settlements between Cardano and Litecoin and it will improve Litecoin’s scalability and will introduce support for smart contracts. The upgrade is called a velvet fork but it is not a hard fork nor a soft work but it is an option and there is no need for consensus and the miners will be able to continue serving the Litecoin network whether they will install the upgrade or not.

The fork used a system called “non-interactive proof of work” and among other things, the block is able to be verified across different blockchain networks. It is not certain that the upgrade will be implemented since some risks come with adding the feature and Schwartz noted: “earnes and open discussion on all aspects of such a move for Litecoin is needed.” He said that the question is not just for developers and miners but also for the entire LTC community. The proposal has some support, almost nobody opposed it. one commenter said that because it is proposed by Cardano, the team will work on implementing cross-chain swaps on its own.

Another commenter argued that Litecoin has to stand out on its own and not “piggyback with Cardano.”  There’s a precedent for a partnership between blockchain projects as LTC is now collaborating with Grin’s David Burkett on private transactions. With the Velvet fork, it seems that it will be a bigger risk as a similar partnership with Cardano seems plausible.