Be Wary Of Litecoin Forks
There has been a lot of talk about "forks" in the cryptocurrency community. Bitcoin itself has
had many forks, including Bitcoin Cash, Bitcoin Diamond, Bitcoin Gold, and others. In fact, Litecoin is the original Bitcoin fork. As the popularity of Litecoin surges, it was inevitable that Litecoin would also have forks created.
What is a fork, exactly? A fork is a change to a cryptocurrency's protocol. There are two types of forks, hard forks and soft forks. In the case of a soft fork, the blockchain at the time of the fork maintains backward compatibility with the existing blockchain. This allows the entire blockchain to continue to be used. An example of a soft fork was the addition of segregated witness technology to Litecoin. As a result of this protocol improvement, Litecoin has more functionality, but still only has one blockchain which records all Litecoin transactions. Hard forks, by contrast, introduce a protocol change that makes the new additions to the blockchain incompatible with the existing. As a result, the existing blockchain is copied, and all new transactions are added to this new copy. A good example of a hard fork was the Bitcoin Cash recent fork in August of 2017. This protocol change increased the block size from 1MB to 8 MB, but because of this change the new blockchain for Bitcoin Cash is no longer compatible with the older Bitcoin blockchain, and the two are mined separately.
Back to Litecoin. A recent hard fork called Litecoin Cash (LCC) has been announced for mid-February. Neither Litecoin Cash nor any other Litecoin fork is endorsed by the Litecoin Foundation. This is NOT an official fork of Litecoin. It should be noted here that the Litecoin Foundation has absolutely ZERO plans to create any fork of Litecoin. The creator of Litecoin, Mr. Charles Lee, has gone on record on his Twitter account with the following statement:
PSA: The Litecoin team and I are not forking Litecoin. Any forks that you hear about is a scam trying to confuse you to think it's related to Litecoin. Don't fall for it and definitely don't enter your private keys or seed into their website or client. Be careful out there!
There are a number of important points here. First, we've been screaming this from the mountain tops: As long as you and you alone are in control of your private keys, you own your currency. Please do not fall prey to the age old tactic and entering your private keys or private seed into a website. EVER. Just don't do it. Second, anyone can create a fork of any coin that has had its source code posted to the public domain. There are a few coins that have not released their source code, but these care controlled by private corporations. Often, individuals create coin forks to induce market confusion with the original. People still believe that Bitcoin Cash is somehow related to Bitcoin. It isn't, it's a clone created by Roger Ver to overcome scaling limitations in the original Bitcoin protocol. Riding the coattails of an established coin is a great way to get immediate exposure for a new scam coin.
Coins Demystified has constantly preached security. To be 100% crystal clear, we are not opposed to Litecoin Cash. We just don't know anything at all about its creators, or where it's market niche will be. We have seen posts asking people to give up their private keys and enter them into websites, and we know with certainty that once that is done people will lose their hard-earned Litecoin. We just want everyone to be safe.
So, what is Litecoin Cash? We really don't understand why it was created, but allegedly it is a clone of the Litecoin protocol with Bitcoin's SHA-256 hashing algorithm. The block size remains at 2MB instead of Bitcoin's 1MB, the number of coins released will be 840 million (10 times Litecoin, and 40 times Bitcoin), and blocks will be solved every 2.5 minutes like Litecoin instead of 10 minutes as per the Bitcoin protocol. The change from S-crypt hashing to SHA256 is very curious, as S-crypt was the original Litecoin hashing algorithm selected to increase ASIC-resistance for Litecoin. We don't know what the intended objective is for the creators of Litecoin Cash, but as of right now with zero coins having been produced and numerous posts to enter private seeds to receive the 10-to-1 drop of Litecoin Cash (i.e., 10 Litecoin Cash for every 1 Litecoin owned) we believe Litecoin Cash to be much more likely to be a scam and not a serious coin.
At the end of the day, this site is all about giving the people the ability to do their own research and make their own decisions. With that in mind, we'll repeat it one more time:
As long as you and you alone are in control of your private keys, you own your currency. Please do not fall prey to the age old tactic and entering your private keys or private seed into a website. EVER. Just don't do it.
Please keep your hard earned profits safe! Thanks for reading!