On sixth October, Charlie Lee elucidated on the distinction between the on-chain Bitcoin [BTC] and Litecoin [LTC] funds in a collection of tweets. The Founding father of Litecoin’s launch comes within the wake of a discussion with Roger Ver, the CEO of Bitcoin.com, who debated on the totally different features of Bitcoin [BTC].
The primary tweet acknowledged:
“On-chain Bitcoin and Litecoin funds usually are not peer-to-peer. Funds are despatched from sender to miners, who document it on a distributed ledger. The recipient receives the fee when it’s recorded. BUT, that is facilitated by a p2p community the place transactions are broadcasted.”
Lee mainly identified to the essential distinction between the 2 totally different modes of switch, touching upon the varied features of peer-to-peer switch. In accordance with him, the published choice improves the transaction certainty of particular person transfers.
The second tweet learn:
“The printed community IS p2p, however strictly talking funds usually are not p2p. The sender can ignore the p2p community and immediately talk the transaction to miners to ship funds. The sender doesn’t should have any communication with the recipient in any p2p method in any respect!”
This was mainly acknowledged by Lee to clarify the convenience of communication between the sender and the miner. The alternate choice, in response to him, makes it viable for transactions to be carried out even with out the intervention of the sender. This was made clear by Charlie Lee within the follow-up tweet which learn:
“That is really an excellent factor because the recipient doesn’t should be on-line to obtain funds. Satirically, on chain funds resembles extra intently to a hub and spoke mannequin the place the mining swimming pools are the hubs and customers simply want to connect with these hubs to ship funds.”
The hub and spoke mannequin is acknowledged to be the model the place each single social gathering concerned within the transaction must be linked to the community for it to happen. He then went on to talk about the Lightning community which is predicated on a peer-to-peer community. This was defined by Lee, with him stating:
“Lightning community funds, alternatively, are p2p funds. They’re generally direct p2p, generally oblique p2p. LN funds should be despatched from peer to see to get from the sender to the recipient. Each should be on-line, identical to different p2p networks like BitTorrent.”
The necessary presence of customers within the hub and spoke mannequin in on-chain funds is eradicated by the lightning community, which doesn’t depend on another social gathering for the method to be accomplished. Lee touched upon this by saying:
“As a result of LN funds are peer-to-peer, they’ll work if the friends concerned are disconnected from the remainder of the web. The sender may even ship funds on to the recipient by simply having a direct connection with out counting on another events in any respect.”
The Founding father of Litecoin concluded your complete ‘tweetstorm’ by saying that Satoshi’s imaginative and prescient is mirrored in Bitcoin with the Lightning Community as it’s a good match to the title of Satoshi’s whitepaper on Bitcoin titled “A Peer-to-Peer Digital Money System”.