How and Why Yours Moved from Bitcoin to Litecoin

How and Why Yours Moved from Bitcoin to Litecoin

Recently, micropayment-powered content monetization platform Yours switched from bitcoin to litecoin as its cryptocurrency of choice. On the latest episode of Let’s Talk Bitcoin, Ryan X. Charles, who is the CEO of Yours and now refers to the project as “Medium with a paywall”, was interviewed by host Adam B. Levine.

During the interview, Charles discussed the various problems Yours had with bitcoin, why they switched to litecoin, and how easy it was to make the transition.

Bitcoin’s High Fees Became Prohibitively Expensive

Around the time that the interview took place, Charles noted that bitcoin transaction fees had hit an average of roughly $3.

“This is quite expensive,” said Charles. “Even if you’re going to use a micropayments solution like the Lightning Network or like the one we built, you still have to open payment channels.”

In terms of payment channels, Charles also noted that multiple transactions are needed when using currently-available solutions, which would mean multiple transactions and more fees.

“From the point of view of a social media app, the thought that we’re going to have to charge our users $9 and all that money just goes to bitcoin miners before they can use our app is incredibly expensive,” said Charles. “That’s a huge onboarding cost. It’s a big deterrent to anybody using it.”

Charles also pointed out that a $9 transaction fee on a $100 deposit, which would likely be a large deposit on a micropayments-focused platform like Yours, would essentially be a 9 percent fee on deposits.

“That’s not even competitive with PayPal or something like that,” said Charles. “Even with these payment channel technologies, the fees on Bitcoin have gotten so high that it’s really prohibitive [for Yours] to get new users.”

Switched to Litecoin Out of Necessity

According to Charles, Yours made the decision to switch to Litecoin roughly a week after completing their own, custom-made micropayments solution on top of Bitcoin. Although Charles admitted that Litecoin could eventually face the same scaling difficulties that Bitcoin is facing today, he also pointed out that Litecoin transaction fees were 100 times cheaper than Bitcoin transaction fees at the time.

“It’s a huge difference,” said Charles. “We could even pay it ourselves. We could easily pay a 10 cent fee to onboard our own users . . . We had no choice . . . We had no economically-viable alternative.”

The Ease of Switching to Litecoin

The similarities between the Bitcoin and Litecoin codebases are well documented, which is why some Bitcoin developers moved to working on Litecoin after the alternative cryptocurrency adopted the much-anticipated Segregated Witness improvement. For this reason, Charles claims that making the move to Litecoin was quite easy.

“Litecoin is technically very, very similar to Bitcoin, so we had hardly any changes to make,” said Charles. “I think it was, at the end of the day, something like three lines of code we had to change.”

Charles added that Yours also went from using Bitcore to using Litecore.

“Bitcore is sort of this excellent suite of tools for interacting with the Bitcoin blockchain,” explained Charles.

According to Charles, some of the Litecoin developers forked the Bitcore project to make it compatible with Litecoin and named it Litecore.

Picture from BTC Keychain/Flickr.

About The Author

Kyle Torpey

Kyle Torpey is a freelance writer and researcher who has been following Bitcoin since 2011. His work has been featured in VICE Motherboard, Business Insider, NASDAQ, New York Post, The Next Web, American Banker, and other media outlets. You can follow Kyle on Twitter, send him an email, sign up for his daily Bitcoin newsletter, or visit his personal website.

  • Coinspring

    Wow. Brains over a Brand-name. Good on ya!
    LTC is a better platform, always has been. One day the rest of the world will wake up to realize Bitcoin 2.0 already exists.

    • Animaniac

      starting to think this as well. LTC is highly stable and highly trusted- its the only one that could usurp btc in a reserve capacity.

  • smd

    Trim the block size to 250KB and activate OP_CHECKBLOCKVERSION, then I move everything there.

    • Animaniac

      huh ? what do you mean? what will happen then?

      • smd

        Litecoin will have 1MB blocks every 10 minutes, SegWit and possibility for users to send fees to miners that signal for upgrades.


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