Charlie Lee of Litecoin (LTC) Criticizes Ethereum Blockchain’s Immutability
Blockchain and crypto coins are on the rise despite the ongoing bearish market. One of the popular figures within the crypto arena, Charlie Lee, who is Litecoin founder, recently commented on the fundamental value of cryptocurrencies. Mr. Lee shared his sentiments when the Blockchain Cruise Conference was held.
Charlie Lee, Litecoin creator, discussed the top two digital assets in market cap as of press date; Bitcoin and Ethereum together with his ‘Litecoin’ project. According to Lee, Ethereum which is currently below the $200 mark lacks the immutability feature found in both Litecoin and Bitcoin. This places the popular ‘smart contract’ project at a disadvantaged position since transactions can be altered in future.
However, crypto coins transactions of Litecoin and Bitcoin can also be reversed at a very costly margin. The charges for the two coins still vary by a significant figure with Litecoin being more expensive to reverse than Bitcoin. Lee insisted that this was the reason it is better to use Bitcoin for large transactions and Litecoin for smaller transactions. This way, crypto users can rely on the security within Bitcoin’s network and its immutable blockchain ledger.
Litecoin costs about $50 for production which is cheaper than Bitcoin but not as cost efficient as it should be according to Mr. Lee.
The Economics of demand and supply is vital for survival of currencies and market liquidity, Litecoin’s production follows the similar pattern adopted by the pioneer crypto ‘Bitcoin’. Every four years, new LTC coins are supplied to the coin market. However, Litecoin has a total supply limit at 84 million which is set to be constant forever according to the whitepaper. Charlie Lee said that it would only be possible to change the supply if users were onboard, a very unlikely scenario!
In conclusion, Charlie Lee spoke about Ethereum, the 2nd digital asset in market cap right now. The LTC founder was critical on Ethereum’s inability to be immutable. He added that the ETH project is highly ‘security oriented’ and censorship resistant as well.
“It’s hard to see certain transactions but the problem with Ethereum is, we have already seen it, we have already shown and proven that transactions on Ethereum is not immutable for most cases it is.”
Mr. Lee gave the Ethereum Classic fork example as support for his sentiments. This is what most popular crypto enthusiasts recall as the ‘DAO’ hack, the pioneer ETC was forked and today its fork Ethereum is a market leader. The reason for this fork was to secure tokens that were being stolen hence the reaction by the ETC community and its developers.
From an investors’ point of view, this seems to have been the best move since the coins were recovered from the hackers. However, the question remains on the impact of such a move in the decentralized digital asset economy. Does it uphold the properties of cryptocurrencies?
“It sets a bad precedent that governments can approach the foundations of developers and convince them that this transaction is bad because it’s sending millions of dollars to a terrorist group. So, no one likes terrorists but for properties of sound money is important that transactions are immutable.”
Ethereum is facing price action challenges sliding far much down than its peer assets. The project’s woes might end or not once the coin goes full PoS (Proof of Stake). According to Lee, this will cut production costs greatly but hurt some ERC20 based projects at the same time.