Litecoin transaction fees are set to be reduced by ten times in the upcoming core release.
And since fees temporarily eclipsed $50 per bitcoin transaction at the peak of $2017’s unforeseen bull run, which saw bitcoin rising from $1,000 to $20,000 in a 12-month time span, the topic of scaling solutions and lowering transaction fees have been on the minds of developers, investors and industry leaders.
But even in the middle of the period when the bitcoin fees amounted to a king’s ransom, so to speak, Litecoin, which is an early bitcoin spawn, quickly proved itself to be a great alternative to the big daddy of the cryptocurrency world. Because of that, Litecoin has since gained traction as in the online payment world bitcoin’s little brother.
On the other hand, developers of the popular altcoin have indicated that while Litecoin transaction fees are near-negligible, it would still be advantageous for the project to continue to push fees to close-to-zero levels.
On Friday, LitecoinDotCom on Twitter revealed that the upcoming software update to Litecoin Core 0.17 will see the average network fee be cut by a factor of 10.
According to the data gathered by BitInfo, which is a popular cryptocurrency analytics provider, the average fee for transacting Litecoin is $0.1. That means when this change is implemented, transacting Litecoin will likely cost less than a cent for an average user.
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The cryptocurrency media outlet then indicated that this change has been catalyzed by the massive run-up in transaction fees during the aforementioned Bull Run.
Adrian Gallagher, who is the lead developer of the Litecoin Core project, made a comment on the reduction, calling attention to the theory that low transaction costs will boost the adoption and usage of crypto asset.
Some would argue that this can be more than a theory, as the reduced transactions are not for a network, the higher the possibility that its native asset is used in day-to-day commerce around the globe.
Gallagher then added that he doesn’t expect for the crypto market to trend lower for too much longer, indicating that he sees a market reversal appearing in the next three to six months. Keeping this in mind, the Litecoin developer noted that fees offered in Core 0.17 are likely a beneficial step in the right direction for the blockchain and the crypto community as a whole.
Meanwhile, some skeptics of the change were quick to point out that this drastic fee reduction will damage the pockets of cryptocurrency miners ,and subsequently, the security of the PoW-based Litecoin chain, which is one of the most secure decentralized networks on the globe.
Even though this is a valid concern for some other PoW block chains, like Ethereum and bitcoin, this fear should not be applied to the Litecoin chain. Due to Litecoin’s quick block times and higher transaction limits, the transaction fee market isn’t existent for this blockchain, with such costs only accounting for less than 1 percent of a Litecoin miner’s income. That means any move to lower the transaction fees will likely have no adverse effect on any mining operations.