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Litecoin, Cardano “Velvet Fork” Plan Now Under Discussion

Litecoin and Cardano, two decentralized projects among the top 10 crypto market rankings, are planning to collaborate for cross-chain communications. Litecoin Foundation Project Director David Schwartz recently opened community discussion for an upcoming velvet fork.

To clarify the difference between soft and hard forks to a velvet fork, the latter allows developers to add new rules to a blockchain without gaining full support from the entire ecosystem. By utilizing the Non-Interactive Proofs of Work (NiPoPoWs), blockchains can interact like APIs.

In line with this, a cryptocurrency like Litecoin can be used within a smart contract running in a network with smart contract capabilities such as Cardano and Ethereum.

Schwartz pointed out the lucrative potential of this velvet fork:

An opportunity to allow for settlement payments in Litecoin in Ethereum, Cardano, and other smart contract rich blockchains. This opens the door to many opportunities for a ‘currency’ focused cryptocurrency such as Litecoin.

By performing a velvet fork within Litecoin’s code, cross-chain communications would be enabled. This improves the scalability and functionality of smart contracts. Despite the idealistic approach that this fork shows, Schwartz expressed hesitation in actually doing the process.

He further stated that,

The road to mainstream adoption is not the only thing at stake. The ability for both chains to move forward in a safe and calculated manner for their respective, individual chains should also be a part of the end goal.

He also mentioned that he loves the idea of cross-chain communication through blockchain collaboration but “it still needs to make sense in terms of security & integrity of the coin”.

This plan could still take time to push through. Yet, Cardano continues to show its dominance in the blockchain development scene. It claimed the spot as the top blockchain by average daily development activity on Github, according to Santiment.

At the time of writing, the native tokens of the projects ADA and LTC are ranked 9th and 10th, respectively. ADA is changing hands at $0.105449 while the LTC price level is at $47.66.

CoinQuora Staff

CoinQuora is an online publication that aims to educate about news, exchanges, and markets in the cryptocurrency and blockchain industry

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