Litecoin (LTC), the popular virtual currency, will be reducing transaction fees in the near future. Although the difference may be negligible for users, especially those trading small amounts, developers want to drive transactions close to zero.
Litecoin Fees Would be Reduced
Litecoin was generally an inexpensive virtual currency to use. Transactions were performed fast and for very low fees since the very beginning. During the bull market that drove Bitcoin prices to $20,000 dollars, users started to use LTC to avoid paying high fees.
Bitcoin transactions were close to $55 dollars at that time. Transaction times were also very low. However, Litecoin remained competitive offering transaction fees lower than $1 dollar. During peak times, LTC fees reached $1.5 dollars.
Developers of this popular virtual currency said that it would be positive to reduce fees even more. In the Litecoin Core 0.17 upgrade, the average network fee will go down to $0.01 dollars. The main intention is to encourage more adoption of Litecoin, something that can be achieved in this way.
Adrian Gallagher, Core Lead Developer, commented on the matter:
“To encourage more adoption and usage of Litecoin, I think lowering the fees are a good thing. We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins. Technically people can already adjust their fees right now to the one above because of the more relaxed min relay/dust relay fee.”
Additionally, Gallagher said that he believes that the bear market will not last long. Between three to six months we could see virtual currency prices grow again. With lower fees, it would be possible to lay down the foundation for a fee rate that can grow proactively rather than re-actively, he said.
Since the beginning of the year, the cryptocurrency market is in a bear trend. Bitcoin reached $20,000 dollars and now is being traded close to $6,500. Litecoin, instead reached $350 dollars, according to CoinMarketCap. Now, Lincoln is being traded close to $55 dollars.
According to a blog post released by Litecoin.com, transaction fees compromise around Ł0.05 per block. That means that lowering fees would not be an issue for miners. The majority of the funds generated by miners is related to the reward they receive in LTC, which is 25 LTC at this moment.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.