On October 19th Litecoin announced an update to the Litecoin protocol to version 0.17. The
The highlight of the update is the fees falling to only half a cent. The announcement was made via Twitter.
— Litecoin.Com (@LitecoinDotCom) October 19, 2018
The medium article attached to the Tweet elaborated on the drastic fall in transaction fees. The fees are said to fall to $0.005 which is ten times less than the current value of $0.05. The transaction fees were $0.005 last in 2015, and will challenges Bitcoin quite strongly given the transaction fees of Bitcoin is currently at $0.10.
Adrian Gallagher, the lead developer of Litecoin Core, explained that the low transaction fees are needed to increase the adaptation of Litecoin. He explained –
“To encourage more adoption and usage of Litecoin, I think lowering the fees are good thing. We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins. Technically people can already adjust their fees right now to the one above because of the more relaxed min relay/dust relay fee. I also don’t think it will be too much longer before this bear market is over (3–6 months) so it will lay down the foundation for a fee rate which we can grow into proactively rather then re-actively.”
Litecoin has been constant in 2018, with quiet updates going on. It has established to be a cryptocurrency for e-commerce thanks to its low transaction fees and fast transfers. Still, Litecoin has been facing a fall in price in the last six months as seen below in the graph-
Image Source – Trading View
As seen in the graph, Litecoin was in the levels of $160 in April, however, six months later at the time of writing it is at $52.923. Litecoin’s promised roadmap includes privacy issues being solved through confidential transactions, the improvement in scalability with the Lightning Network integration and the new update which will reduce transaction costs by ten times. Hence these improvements are much needed for Litecoin to regain more than the $150 levels as seen six months ago.
Image Source – Flickr
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.