The blows against Bitcoin just keep coming. This time, major electronics retailer Newegg said it has started looking into Litecoin as its second method of cryptocurrency payments — having accepted bitcoin since 2014.
Newegg Goes Litecoin
Newegg revealed on Friday morning that it had started researching Litecoin. Twitter user Aaron Diaz Chavez tweeted to the company, asking when they would accept the altcoin.
Newegg later responded, telling Chaves that they had started looking into Litecoin:
If Newegg accepts Litecoin, it would represent a significant shift in the way mainstream companies view cryptocurrency. Currently, mainstream businesses generally only accept bitcoin due to its value and popularity. While these businesses acknowledge the benefits of certain altcoins, they usually state that they do not have plans to accept them.
However, with the Bitcoin blocksize issue becoming more serious, Newegg may soon confirm what many Bitcoiners have warned about: the fact that a congested network would result in individuals and businesses turning to other cryptocurrencies for relief.
Until recently, Ethereum was the main cryptocurrency referenced as a viable alternative to Bitcoin. Because of its efficient development team and its range of native uses beyond currency, people suggested that Ethereum could revolutionize all aspects of economy.
Now, it seems like Litecoin has emerged as a real contender.
Should Litecoin Thank SegWit?
Litecoin — created by Bitcoin enthusiast Charlie Lee — gained renewed interest after its creator announced that he and his development team would support integrating SegWit into the altcoin.
In a blog post, Lee said that he wanted to activate SegWit on his altcoin in hopes that his project could serve as an example to the Bitcoin community. If Litecoin can successfully activate SegWit and benefit from it, he said, Bitcoin could definitely do the same.
The altcoin began its activation of SegWit a few weeks ago. At press time, the upgrade has been fully implemented. In fact, developers have begun work on a Litecoin version of the Lightning Network, one of many solutions made possible by the upgrade.
SegWit: Created for Bitcoin, but Other Currencies Use it to Gain a Competitive Edge
Bitcoin’s Core developers created the SegWit upgrade as a way to solve the blockchain’s transaction malleability problem — an issue that has persisted since the technology’s creation.
Along with the malleability fix, the upgrade includes several other new features, most notably scalability solutions that do not require a hard fork.
However, Bitcoin has not accepted SegWit because of dissenters actively blocking its activation. Due to the intense political, economic, and technical debates surrounding the upgrade in the Bitcoin world, the world’s miners have failed to form consensus on the upgrade.
Instead, they remain torn between SegWit and a series of hardfork proposals brought forth by developers and influencers that believe on-chan scaling is a must for Bitcoin’s survival.
Currently, those opposed to Core’s upgrade support Bitcoin Unlimited as the de facto alternative.
While both sides of the Bitcoin scalability debate have legitimate arguments, their seemingly irreconcilable disagreement have deadlocked the world’s largest cryptocurrency. As a result, transaction times have slowed, and miner fees have skyrocketed — especially with the increased transaction volume brought about by the bitcoin price rally.
And, in the background, altcoins like Litecoin have gained more prominence and support by adopting SegWit. This trend will likely continue until the Bitcoin community reaches a compromise, regardless of whether the result involves on or off-chain scaling.
What does the growing mainstream interest in Litecoin mean for Bitcoin? Share your thoughts down below.
Images via Reddit user “Liquid00,” Aaron Diaz Chavez