The “bifurcation” (or fork ) processes, very well known in the world of cryptocurrencies, are nothing but the evolution of the original code of a given virtual currency. If then this change of the code becomes devoid of backward compatibility or, in other words, a clear division between the two codes such that there can be no more exchanges between the old and the new version … then we talk about hard fork as l event that led to the birth of Litecoin Cash (LCC) .
Contrary to the fork experienced for Bitcoin (ex: Bitcoin Cash) or for the Ethereum in this case the surprise factor was decisive. In fact, until Sunday, February 18, no one in the community thought that Litecoin needed an evolution of its code and the simultaneous birth of Litecoin Cash (LCC) and nobody from the developer team wanted to give a specific reason to justify the spin-off.
And then it seems obvious to think that the only reason that supported this hard fork was the economic one. Litecoin Cash (LCC) at birth was worth about 3 dollars (compared to 228 for Litecoin), doubling its value in just one week of life, rising to 5.94 dollars (against Litecoin’s 207). The reason why the new tokens are worth so little individually is to be found in the fact that these have been increased tenfold. In fact, similarly to what happened in other situations with other cryptocurrencies, whoever had Litecoin tokens at the time of the fork saw them multiplied 10 times in a quantity of Litecoin Cash (LCC) tokens (ie for each LTC 10 LCCs were assigned ).
At the date of realization of the article Litecoin Cash (LCC) stood at 3.28 US dollars (against 222 for Litecoin).
The characteristics of the newly formed cryptocurrency
The Litecoin Cash (LCC) has some technological peculiarities:
- uses a SHA-256 algorithm like its big brother Bitcoin. This choice probably comes from the desire to attract miners with obsolete hardware for Bitcoin extraction.
- has implemented the DarkGravity V3 algorithm from the Dash to recalculate the mining difficulty with each block.
- has implemented Segregated Witness (SegWit) since its inception to optimize transactions.
The miners can extract the first 24 blocks with minimal difficulty favoring the recruitment of the first miners. The developers have pre-created less than 1% of the circulating offer, preserving it for development funds.
Similar to Litecon, the creation time for each block of the Litecoin Cash (LCC) is only 2.5 minutes even if, after hearing the interviews conducted these days with the developer community, the transactions for this last cryptocurrency will be 90 % cheaper than those with Litecoin.
Read also: Here comes the Litecoin: yet another Bitcoin clone or student that can surpass the master?
So, despite the fact that we are faced with a completely unexpected new cryptocurrency, the market response for Litecoin Cash (LCC) is, to date, positive. Digital currency enthusiasts have won, always attentive to these events and with the desire to seize every new opportunity presented in this lucrative market. The faction of the crypto-skeptics who branded this new digital currency as “not very useful” remained at stake. History teaches us that almost always the forks of the main cryptocurrencies turned out to be very “interesting” events especially in the initial period when the appetites of investors who see possible gains wake up, regardless of how the new currency settles in the market, wake up.
If we wanted to make an analogy, the fork of 2017 that Bitcoin gave birth to the Bitcoin Cash was intended to solve some dramatic problems with the most important cryptocurrency in the world. At the time, Bitcoin transactions took more than a full day and the transaction costs were around $ 20 each. With the birth of Bitcoin Cash a new currency was born of the same stock as its most famous ancestor but which was going to solve these problems by giving investors a new investment opportunity.
Litecoin Cash (LCC) , although it claims to be faster, does not solve any problems with its predecessor currency Litecoin (LTC) . An LTC transaction takes a few seconds and it is quite cheap to do it and we talk about the same order of magnitude as LCC.
Yet this alleged “non-utility” in the critpovalute ecosystem did not prevent it from trading more than US $ 4 million in Litecoin Cash (LCC) on the YoBit exchange.
This successful investment of almost all the fork events of the major cryptocurrencies regardless of the real value of the new born has a lot to do with immaturity in the cryptocurrency market. All Gold and Cash future versions will continue to experience initial exploits until the cryptocurrency market becomes more mature and focuses solely on some cases of real value.