The non-profit Litecoin Foundation has unveiled its OmniLite platform, which offers access to smart contracts, tokenized assets, and NFTs. OmniLite allows you to create your own cryptoassets or tokens. In effect, you can now create DeFi projects on the Litecoin network.
There is nothing better for an analyst than to see his forecast come true. Not so long ago, I predicted (http://cryptoinsight.ae/litecoin-getting-ready-for-the-next-breakthrough/) that the Litecoin cryptocurrency (LTC) – one of the oldest and most respected – is priming for a leap in quality. Namely: integrating smart contracts, allowing token creation on its blockchain, which would mean opening the gate to the world of decentralized finance.
Though until recently, the Wanchain (WAN) cryptocurrency had been assumed to become the next “step” for Litecoin. Its developers even worked on creating technologies for interaction between networks. In particular, the Wanchain team was known to be making LTC compatible with smart contracts and decentralized applications.
However, in a press release published on September 7 (https://litecoin-foundation.org/omnilite-launches-for-the-litecoin-network/), the Litecoin Foundation, a non-profit organization that develops and maintains the Litecoin cryptocurrency, didn’t mention Wanchain at all.
Instead, it introduced OmniLite – a decentralized platform and an open-source layered protocol that, according to the altcoin developers, will simplify the creation of new cryptocurrencies and stablecoins. The Litecoin Foundation claims the platform, among other things, has lower transaction fees than the existing protocols (clearly a shot at Ethereum).
The protocol is built on the Litecoin blockchain, which records transactions of tokens issued with OmniLite. It currently supports a wallet mode (Litecoin Omni) and is available on Windows, Linux, and MacOS.
The OmniLite project is based on the already existing Omni protocol (known initially as Mastercoin), which served as a secondary layer in the Bitcoin blockchain. Using the OMNI token, Bitcoin users were able to create their own tokens and early precursors to NFT.
To understand how old that project is (by the standards of the crypto world, of course), simply recall that Tether tokens were first launched on Omni back in October 2014. Moreover, the Omni protocol had remained the only one supporting Tether for over three years until that stablecoin was established as an ERC-20 token on Ethereum in November 2017.
OmniLite was created jointly by the Omni team and the Litecoin developer known in the community as Loshan. One of the main objectives of the new solution is allowing users to create and manage assets on the Litecoin blockchain. Just as Omni uses the Bitcoin network, OmniLite will use OP_RETURN to record token transactions on the Litecoin blockchain.
And since all OmniLite transactions will be recorded on the Litecoin blockchain, it will inevitably have to deal with scalability issues. The Litecoin Foundation representative Jay Milla commented: «Litecoin can handle more transactions per second (tps) at lower fees compared to Bitcoin or Ethereum. So we don’t expect any problems at the moment. In the meantime, research and work are ongoing to ensure that users can manage assets created at the Omni level on the Lightning Network.»
Litecoin transaction fees really are some of the lowest. In recent days, they have stayed at around $ 0.025, while the average commission is $ 2.5 on the Bitcoin network and above $ 60 on Ethereum. In other words, the average transaction fee on the Litecoin blockchain is 2,400 times lower than on the Ethereum blockchain. Of course, this may change after developers start using OmniLite and the number of transactions on the Litecoin network skyrockets. But even then, it will have a striking advantage over the Ether network.
LTC, for those unfamiliar, is one of the first cryptocurrencies. It was created in October 2011 by the developer Charlie Lee, who still plays an active role in the fate of his brainchild. Basically, Litecoin is the first fork of Bitcoin. Based on the BTC program code, both networks operate according to a similar principle: data is written in the form of a linked chain of blocks, each containing a hash of the previous one. The mining processes for both cryptocurrencies also look alike. At the same time, the LTC network speed is noticeably higher, and the ultimate cryptocoin output is four times that of Bitcoin.
This combination of qualities made Litecoin a more convenient means of payment than the original BTC. One might say that Litecoin for years has been highly undervalued. As with Bitcoin, the network is truly decentralized, at the same time being faster and cheaper. OmniLite will now simplify the creation of both Litecoin-based stablecoins and modern DeFi projects.