Litecoin Core v0.17.1 Releases Update Featuring a Fee Reduction by 10X
Litecoin.org has announced the release of a new client software version, Litecoin Core v0.17.1 that comes with a new wallet format, extended privacy features, and slight user interface changes. The most significant change came into the form of network fee policy change that reduces the minimum transaction cost from 0.001 LTC/kb to 0.0001 LTC/kb.
However, unlike the highest average fees on Bitcoin at $55 according to Bitinfocharts, Litecoin’s peak was only $1.5 USD even during the bull run in December 2017.
As soon as the new version is adopted by the majority of nodes, the fees will be cut down drastically that means even writing your own transaction in a full block will cost about $0.15 that is ten times lower than the amount paid during the bull run.
During the normal market condition that is low demand, the average fee could be as low as a cent and even lower.
This reduction in fee will make atomic swaps from Litecoin to Bitcoin possible as well. Once you have joined the network, instead of paying a higher fee by opening a Bitcoin channel, you will be able to exchange your LTC for BTC. One gets to have the advantage of the network effect and merchant adoption while having low fees.
Improving Privacy In Litecoin
Recently, Bitcoin developer Pieter Wuille released two Bitcoin Improvement Proposals (BIP) to provide a foundational upgrade to the cryptocurrency. These proposals involve Taproot, a code that is designed to improve Bitcoin’s privacy. Through a soft fork, Taproot is expected to be bundled with an upgrade called Schnorr that will pave the way for scalability and privacy improvement in Bitcoin.
However, it’s not just Bitcoin that is preparing for an increase in privacy, as part of Litecoin Core’s new version, a new coin selection feature has also been added that enables greater privacy for user UTXOs. Moreover, support for partially signed transactions has also been added that will simplify the workflows where multiple parties are required to generate a transaction.
Litecoin is already working on attaining privacy and fungibility as announced by its creator Charlie Lee in January 2019. This pursuit of privacy involves the addition of Confidential Transactions and MimbleWimble implementation.
The latest release doesn’t provide any update in this regard however, Lee has stated on numerous occasions that this is the priority that they are working on this year.