At a Litecoin Summit held recently, Charlie Lee spoke about his journey as the founder of Litecoin [LTC], and how being an authoritative figure of the community has helped take the token to new heights. He contrasted his presence with that of Bitcoin’s Satoshi Nakamoto, who is an enigma, and said that having no authoritative figure comes with its own costs.
Charlie Lee explained how he created nine other altcoins before Litecoin and was just playing with the Bitcoin’s code when he became serious about the Litecoin project [when the market cap “hit a billion dollars in 2013”]. Lee added that many people who developed altcoins were biased and that most of the coins were launched in an “unfair manner”.
According to him, this was because they had pre-mined millions of coins and cashed out after the coins pumped. Therefore, he wanted to start a coin that was fair, unbiased, and something that will compliment Bitcoin. This thought led him to coin the phrase “Silver to Bitcoin’s gold”.
SegWit was proposed in 2016 as an upgrade to Bitcoin’s scaling problem, which essentially increases the block size by removing the signature data from Bitcoin transactions. “I first heard of SegWit in Bitcoin scaling conference,” said Charlie Lee. “This was an amazing solution.”
The Litecoin community resisted the implementation of SegWit, and a lot of miners opposed it as well because it would allow transactions to happen off-chain. As a result, it prevent miners from being benefitted for mining the block, but it also prevents implementation of ASIC boost [helps increase mining efficiency].
The cryptocurrency expert added that the problem with mining is that it consumes a lot of energy and ASIC boost was a workaround for that, which reduces the number of potential hashes required to solve a network block. ASIC boost was patented, which prevented miners from using it and this led to the development of a covert ASIC boost.
Implementing SegWit would prevent miners using covert ASIC boost. The community resisted implementation of SegWit on Litecoin and the matter became political, said Charlie Lee.
Charlie Lee added that he was convinced of the upsides of implementing SegWit, and added:
“I came out and convinced the community that SegWit is the right path forward for Litecoin.”
Pushing SegWit was tough but possible because the Litecoin community is centralized. However, as a cryptocurrency, it is decentralized, said Charlie Lee. He then went on to compare Litecoin with Bitcoin, saying, “I’m still around, but with Bitcoin, Satoshi left. So being a centralized leader is good because it helps make decisions quicker.”