Remember the Bitcoin Ordinals craze that took the crypto world by storm? Well, get ready for round two, but this time on Litecoin! It turns out, bringing Bitcoin’s NFT-like inscriptions to Litecoin was surprisingly easy and cheap, costing just a few thousand dollars and a week of development time. Let’s dive into how this happened and what it means for Litecoin.
The Litecoin Ordinals Fork: A Quick and Affordable Project
Anthony Guerrera, an Australian software developer, is the mastermind behind the Litecoin Ordinals fork. On February 18th, he unveiled a GitHub repository that successfully ported the Bitcoin Ordinals protocol to Litecoin. This move essentially brought non-fungible tokens (NFTs), or rather, their equivalent, to the Litecoin network, mirroring the earlier phenomenon on Bitcoin.
But what motivated Guerrera to undertake this project? Surprisingly, it was a relatively small incentive – a mere 5 Litecoin (LTC) bounty, which later increased to 22 LTC (around $2,000), offered by a Twitter user named Indigo Nakamoto. This bounty was for anyone who could successfully create a Litecoin Ordinals fork. Guerrera, seeing the opportunity and the challenge, jumped in.
In an interview with Cointelegraph, Guerrera explained his motivation: “I knew it was possible because Litecoin has Taproot as well as SegWit,” he stated. He added, “I was in a bit of a mad rush to try and get it done as fast as I could.” The race was on, and Guerrera won, proving that sometimes, innovation can be sparked by even modest rewards.
Understanding the Tech: Taproot, SegWit, and Inscriptions
To understand how Litecoin Ordinals became a reality, it’s crucial to grasp the underlying technology. Bitcoin underwent two significant protocol upgrades – Taproot and Segregated Witness (SegWit). These upgrades were key to enabling Ordinals and inscriptions. Let’s break them down:
- SegWit: This upgrade optimized transaction data by separating signature data (“witness” data) from the main transaction data. This freed up block space and paved the way for more complex data to be included in transactions.
- Taproot: Building on SegWit, Taproot further enhanced Bitcoin’s capabilities by improving script flexibility and privacy. It allowed for more complex smart contracts and, crucially, made it possible to embed non-transactional data into the blockchain in a more efficient way.
These upgrades essentially opened the door for “inscriptions.” Inscriptions are like etching data, which can be anything from text and images to video, onto individual satoshis (the smallest unit of Bitcoin). These inscriptions are what give rise to Bitcoin Ordinals, effectively creating NFT-like assets directly on the Bitcoin blockchain. Since Litecoin also implemented SegWit and Taproot, it possessed the same technical foundation, making it ripe for an Ordinals fork.
Litecoin Ordinals: Cheaper and Roomier?
One of the intriguing aspects of Litecoin Ordinals is the cost. Guerrera mentioned that inscribing a ‘litoshi’ (the Litecoin equivalent of a satoshi) costs only about two cents. Compare this to Bitcoin, where inscribing an image can range from several to tens of dollars, depending on the file size. This cost difference is significant and could make Litecoin Ordinals a more accessible platform for creating and trading these digital assets.
Another key difference lies in block size. Bitcoin’s block size limitations have led to debates about the network space occupied by Ordinals, as they contain significantly more data than typical transactions. Litecoin, with its larger block size, might be less susceptible to these congestion issues, according to Guerrera. However, he acknowledges that it’s still a possibility. He aptly put it, “It might as well be me since Pandora’s Box has already been opened and someone was going to do it.”
How Was the Litecoin Fork Created So Quickly?
Guerrera revealed that creating the Litecoin fork was surprisingly fast, taking only about a week. He explained, “the changes were quite simple.” The core task involved adapting the existing Ordinals code to work with the Litecoin network’s inputs instead of Bitcoin’s. This meant tweaking the code to recognize Litecoin’s blockchain parameters.
Furthermore, the fork needed to account for the differences between the two blockchains, such as:
- Total coin supply: Bitcoin has a maximum supply of 21 million coins, while Litecoin’s is 84 million.
- Block creation time: Bitcoin blocks are generated roughly every 10 minutes, whereas Litecoin’s are closer to 2.5 minutes.
These differences, while important, were manageable for Guerrera to incorporate into the forked protocol.
The First Litecoin Ordinal: A Nod to Privacy
On February 19th, Guerrera announced the creation of the first-ever Litecoin Ordinal. What did he inscribe? None other than the MimbleWimble whitepaper! He chose to upload this document to the Litecoin blockchain as the inaugural inscription.
This choice is significant. Litecoin underwent the MimbleWimble Extension Blocks (MWEB) upgrade in May 2022. MWEB introduced a privacy sidechain to Litecoin, allowing users to opt into private transactions. It also brought other advancements aimed at reducing unnecessary transaction data.
Guerrera explained his symbolic inscription: “I wanted to dedicate the first inscription to it [MWEB] to draw attention to the fact that Litecoin now has a privacy sidechain linked.” He further emphasized his belief in privacy on open ledgers, stating, “I like the technology, and I like that on these open ledgers, privacy can exist.”
What’s Next for Litecoin Ordinals?
Guerrera intends to continue contributing to the Litecoin Ordinals fork, porting over updates from the original Bitcoin Ordinals protocol. However, his long-term involvement might be limited. “I probably want to hand this over as I don’t want it to take up too much of my time,” he admitted. He has other projects and commitments vying for his attention.
This raises the question: Who will take the reins and further develop Litecoin Ordinals? Will it gain traction and become a thriving ecosystem like its Bitcoin counterpart? Only time will tell. But one thing is clear: Litecoin has now officially entered the world of Ordinals, opening up new possibilities for the silver crypto and its community.
Key Takeaways: Litecoin Ordinals at a Glance
- Forked from Bitcoin Ordinals: Litecoin Ordinals are based on the Bitcoin Ordinals protocol, bringing NFT-like inscriptions to Litecoin.
- Low Cost: Inscribing on Litecoin is significantly cheaper than on Bitcoin, costing only cents.
- Faster Blocks, Larger Size: Litecoin’s faster block times and larger block size might mitigate some of the congestion concerns seen on Bitcoin.
- Privacy Focused First Inscription: The first Litecoin Ordinal was the MimbleWimble whitepaper, highlighting Litecoin’s privacy features.
- Future Uncertain: The future development and adoption of Litecoin Ordinals depend on community involvement and further development efforts.
Litecoin Ordinals represent an exciting development for the Litecoin ecosystem. Whether it becomes a niche experiment or a major feature remains to be seen, but it undeniably adds a new dimension to Litecoin’s capabilities and positions it as a more versatile cryptocurrency.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
