13 years ago /coblee launched Litecoin - a lite version of Bitcoin - into the world. Last year we did a deep-dive into the months leading up to Litecoin’s creation. How Charlie Lee, with the benefit of hindsight and a precedent, modified Bitcoin’s code to create a faster and liter currency, better suited for everyday use in the modern world.
Instead of looking purely at Litecoin’s evolution, this year we’re exploring the BTC-LTC relationship. The tests, successes and collaborations. And getting to know an individual whose constant presence seems to have gone unnoticed by all but a few. Enjoy!
From Parent to Peer.
Litecoin would not exist without Bitcoin. Call me crazy, but without Litecoin, I don’t believe Bitcoin would be here today. And that, without the other, neither would survive.
“I tweet more about Bitcoin than Litecoin. Deal with it! If you trust my vision of a BTC/LTC future, then trust that I know what I'm doing” - Charlie Lee @SatoshiLite - 9:58 AM · Oct 28, 2017
Bitcoin was never intended as a one-size-fits-all solution. Is Satoshi’s creation genius? Yes. Has it inspired and changed the lives of millions? Yes. Can Bitcoin solve all the world’s problems? No. And there are a multitude of reasons - from political to social - as to why Bitcoin will never be successful in going it alone. And, it doesn’t have to. We come in peace.
Of the 30,000+ altcoins Bitcoin has spawned, Litecoin has played the most significant role. Without Litecoin, the Bitcoin Developer Mailing List would still be talking about scaling and block size. Tribalism would likely have killed Bitcoin. If Charlie Lee had not tweaked Bitcoin’s code to make a liter and faster ‘alternative coin’ (altcoin), positioning it from the outset as the silver to Bitcoin’s gold, then Bitcoin almost certainly would have been forked to death. And the result would be even more memecoins and useless tokens. Even Bitcoin Maxis (Hi!) would agree that no one should have to live in that Buterin-Hallucination Hellscape.
From the outset, Litecoin declared itself no threat. /coblee had zero interest in creating a Bitcoin-killer. Rather, a companion. Over the last 13 years the dynamic in the relationship has proven mutually beneficial. For the most part, the Bitcoin-Litecoin relationship is one of mutual respect. Due in no small part to the enviable DNA gifted to Litecoin by Bitcoin’s elders. But it hasn’t been all one-way. And we’ll discuss why, after a little detour.
“Who actually is Satoshi is one of the least interesting questions about Bitcoin” (Peter Todd)
Four days ago HBO released Money Electric: The Bitcoin Mystery. Anemic clickbait bordering on dangerous ‘reporting’. But I have an admission to make: I sat through the 90-minutes and came away energised, inspired and with a curiosity I haven’t felt since 2015. In lieu of sleep, I’ve scoured thousands of pages of forums and archives. Reliving the toxicity spawned by the ‘block wars’. The unpleasant rivers of dissent that formed Blockstream. Feeling angry at the reminder of 2017’s ICO scams, scam artists and ‘Bitcoin Jesus’. Laughing at the occasional meme, cringing at ‘Blockfolio’ screenshots. And, the entire time, on the watch for one name: ‘Peter+Todd’. And while I don’t believe Todd is Satoshi (alone, at least), his work - not only on Bitcoin, but Litecoin too - is undeniably prolific. The last few days have given me a new perspective on Litecoin, too. One that’s helped me genuinely appreciate Litecoin’s phenomenal contribution to modern finance, Bitcoin and, I’d like to think, humanity at large.
Bitcoin’s role in Litecoin’s story and survival is obvious. We have Bitcoin’s early developers, including Peter Todd, to thank for that. Sleep-deprived I’ve formed a radical view: Peter Todd’s had more impact on Litecoin than any other Bitcoin Core developer. Satoshi, or not.
While HBO was at pains to portray their Satoshi candidate as a goofy-troll, especially in the presence of overlord Adam Back, from what I’ve learned about Todd, he’s more thoughtful than face value. His lack of maximalism feels refreshing and mature.
“As usual, Litecoin is the cheaper, faster, option” is a phrase you wouldn’t expect to hear from almost any other Core developer.
Even among the names in the list below:
Bitcoin can’t be everything, to everyone. And Todd seems to get that. He also acknowledges the important role that altcoins - namely Litecoin - play in maintaining Bitcoin’s development.
“That community - I’m a part of it - thinks altcoins are valuable testing grounds for ideas and have used Litecoin for testing out new ideas in the past”
Peter Todd’s Litecoin Code Review
In 2013, Litecoin was still emerging. Exchanges, wallets and on-ramp support was growing, but slowly. Charlie Lee handed over the bulk of development to the talented Warren Togami. Around this time, Togami engaged Todd to audit Litecoin v0.8.3.7.
Todd was well placed to audit the nascent altcoin, whose codebase was largely derived from Bitcoin’s, which he knew intimately. After auditing the code to the “best of his ability”, Todd published the audit. Making it readily accessible on Reddit.
In his public ‘handover document’ Todd reiterates the value in developers of Litecoin and Bitcoin working together. “Either way I would recomend (.sic) that the Litecoin team work with Bitcoin whenever possible; if any patches are made to Litecoin that could also apply to Bitcoin, attempt to have them included in both projects.” Todd goes on to compliment Togami’s knowledge, skills and leadership in the exploration of Gitian’s use in future Litecoin releases.
SegWit. Proof of Work by Litecoin, for Bitcoin
Charlie Lee has been a staunch supporter of collaboration between Litecoin and Bitcoin. One of the best pieces of evidence being Lee’s piece - My Vision For SegWit And Lightning Networks On Litecoin And Bitcoin - published to Medium on 7th January 2017.
“This is my vision for how Litecoin and Bitcoin will work together to solve the world’s transaction needs in the future. And it is why the Silver to Bitcoin’s Gold analogy always resonated with me. Do you want to come along for the ride?”
A short time later, Lee ecstatically announces the first SegWit transaction on Litecoin. SegWit is perhaps the clearest example of how Litecoin’s development can benefit Bitcoin. A piece of code later adopted from Litecoin to Bitcoin - a grievance Todd made clear in the Litecoin v0.8.3.7 audit. An achievement which effectively ended Bitcoin’s scaling debate.
The Litecoin community - in my experience - has always shared a ‘what’s good for Bitcoin is good for Litecoin’ mindset. And there are countless examples. One of note was the 200 LTC bounty posted by Litecoin developer, Warren Togami, to fix a Bitcoin-related issue in 2013.
Can Litecoin Bring Privacy to Bitcoin?
While Greg Maxwell (ostracised early Bitcoin developer) excitedly posted to /litecoin about Segwit being ‘locked in’ - thanks to Litecoin - it appears Maxwell didn’t share Todd’s enthusiasm for BTC-LTC collaboration. /coblee’s light-hearted request for Maxwell’s help implementing Confidential Transactions on Litecoin being met with eerie silence.
Since 2013, when Confidential Transactions were first proposed by Adam Back, privacy has been one of the most contentious subjects among Bitcoin developers. But history has shown that achieving consensus on topics from block size to scaling has stifled Bitcoin Core’s progress. Fracturing relationships and causing dissent amongst developers. Perhaps - as with SegWit - Litecoin can help Bitcoin resolve the great ‘privacy’ debate.
Though we already know where Todd stands on the subject of privacy.
With fewer loud voices, Litecoin was able to achieve consensus much faster on the subject. In 2019, respected GRIN developer, David Burkett, was tasked with spearheading Litecoin’s quest for ‘privacy’. On 20th October 2019, Burkett, Lee and ecurrencyhodler (aka Andrew Yang) proposed LIP0002. For those reading at home, ‘LIP’ stands for ‘Litecoin Improvement Proposal’. Litecoin LIPs can be viewed on Github.
LIP0002 is the first time MimbleWimble is officially put forward as a part of Litecoin’s ‘privacy’ solution. In a subsequent community update, Burkett explains that - as part of MimbleWimble’s exploration - testing of Merkle Mountain Range (MMR) had been completed. The inventor of Merkle Mountain Range? Peter Todd.
On 28th February, 2020, Burkett authored LIP0004. Which proposed the best path forward for achieving Litecoin’s objectives was MWEB. So-called for its amalgamation of two protocols MimbleWimble (MW) and Extension Blocks (EB). In detailing the Transactions process, Burkett references ‘Stealth Addresses’. Again, a Peter Todd creation.
In May 2022, at block height 2,257,920, Litecoin’s MWEB was locked in. activated. This technology is widely accepted as the most important development and innovation in Litecoin’s 13 years. And, who knows, perhaps one day MWEB - or similar - can be adopted by Bitcoin.
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Litecoin has benefited greatly from Todd’s work. Through his contributions to Bitcoin Core, then directly in his audit of Litecoin’s codebase in 2013. Not to mention that both ‘Stealth Addresses’ and ‘Merkel Mountain Tree’ (MRR) - Todd’s creations - were used in one of Litecoin’s most defining features, MWEB.
I’m glad HBO introduced me to Todd. In the process, I’ve come to see the Bitcoin-Litecoin relationship to be that of peers. My sincerest hope is that we can learn from Charlie Lee, David Burkett, Peter Todd, Warren Togami, Loshan and the countless others who have championed collaboration between Bitcoin and Litecoin. History may well depend on it.
