Cardano (ADA) and Litecoin (LTC) plan to bridge the projects with a fork

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Nov 25, 2020
  • Cardano and Litecoin are planning to launch a velvet fork that would enable interoperability between them.
  • The discussions on the topic have been on-going since mid-July of this year.
  • If approved, network participants would be able to choose whether to implement the update or not.

Interoperability between different crypto projects has been a major topic of discussion in the crypto industry lately. Many projects have found a way to work on different blockchains by launching their coins on said chains. The biggest examples of this include Wrapped Bitcoins (WBTC) and different versions of Tether (USDT).

Now, Cardano and Litecoin plan to bridge the gap between their two chains by launching a velvet fork.

Cardano and Litecoin officials discussing an interoperability plan

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Both ADA and LTC have seen a considerable price increase during the new rally. The new plan might help the two further boost their prices, according to the Litecoin Foundation director, David Schwartz.

Schwartz spoke during the recent Litening webinar series, revealing that Litecoin and Cardano have been discussing the matter since mid-July, when Cardano’s Charles Hoskinson contacted Litecoin’s Charlie Lee with the proposal.

The two agreed that a velvet fork would allow communication between the networks without the need for a majority consensus.

Network participants would not be obligated to implement the update

Schwartz noted that the method would be applied in conjunction with Non-Interactive Proof-of-Work or NiPoPoWs. This means that individual participants of the Litecoin network will be able to choose if they wish to adopt the changes that the velvet fork would introduce or not.

Blocks validated with the update will still be fully compatible with those without it. That way, users can choose the approach they prefer without the obligation to switch, or consequences for not doing so.

The velvet fork was already tested in a Bitcoin Cash (BCH) test network, with quite successful results. The biggest difficulty would be gaining the approval of the community, although right now, there is no reason to believe that the community would be against the idea.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
67% of retail CFD accounts lose money