Developers Urge Use of LTC as Transaction Fees Set to Drop
Fees have exceeded $50 per BTC Tx for the time being during the height of last year’s remarkable run, where BTC rose to $20,000 from $1,000 in a twelve month span. Major leaders in the industry, as well as investors and developers, have been thinking about decreasing Tx fees in order to be able to scale more with solutions.
Even when bitcoin transaction fees were extremely expensive, Litecoin, the earliest BTC-inspired alternative, demonstrated successfully how it's a worthy substitute to the product that defined the crypto world. LTC has gained wide popularity going forward.
Furthermore, LTC developers expressed that despite the fact that transaction fees for LTC are quite insignificant, they see that continuing the project would be very beneficial so as to force the fees to as close to the zero bound range as possible. It was announced that the coming update for LTC’s software will see the typical fee dropped by ten times its original amount.
Currently, the average network transaction fee for Litecoin stands at $0.1. By the time this project is adopted, it will most probably cost the user no more than a single cent. This change has been brought along thanks to the enormous increase in Tx fees during the 2017 bull run.
Lead developer of the LTC Core project release, Adrian Gallagher, emphasized the theory claiming that reduced Tx costs will boost broad adoption and general use of the digital currency. It can be said that this may not be just a theory, because when Tx fees are in fact lowered, the chances for its asset to be adopted on a daily basis worldwide increase tremendously.
Gallagher, however, doesn’t see this to continue happening for a long time; he expects another turn to happen during the next 3-6 months. Considering this, he added that the Tx fees now offered with the new Core release will probably be a beneficial move forward for blockchain technology as well as the crypto world in general.
Cryptocurrency Miners Affected?
Doubters have quickly called attention to the fact that this massive reduction in Tx fees will most likely damage wallets of cryptocurrency miners, and consequently, security of the proof-of-work Litecoin chain, considered among the most protected decentralized networks worldwide.
Such a concern applies to other similar blockchain technologies, such as BTC and ETH, but it’s not the same thing with an LTC chain. The fact that LTC’s block times are quick with transaction limits much higher means that the network Tx fee market for this specific blockchain is nonexistent; these costs will only account for as little as 1% of an LTC miner’s total income. This concludes that any major reduction in Tx network fees will probably have no harmful effect on any of the ongoing mining processes.