Yesterday, the Litecoin Foundation officially announced the release of the OmniLite platform.
The Foundation is proud to announce the release of OmniLite! A decentralized platform to create tokens/assets via the Litecoin blockchain. This innovation is thanks in part to Litecoin Dev @Loshan1212 The next stage in the evolution of #Litecoin is here: https://t.co/Tyxc60r1Ez pic.twitter.com/Oesu2t4Iqp
— Litecoin Foundation (@LTCFoundation) September 7, 2021
OmniLite, which is being called “the next stage in the evolution of Litecoin,” is a decentralized platform for creating tokens and digital assets on the Litecoin blockchain.
OmniLite enables token issuance for Litecoin
Until now, the Litecoin protocol did not provide for the possibility of issuing tokens based on its blockchain, as is allowed by Ethereum or Binance Smart Chain, but thanks to OmniLite it is finally possible.
It is worth noting that although the block-time of the Litecoin blockchain is over two and a half minutes, compared to 15 seconds for Ethereum, the fees are much lower.
In the last 24 hours, the average fees per transaction on the Litecoin blockchain have been less than three cents ($0.025), with the median even below a thousandth of a dollar, while on Ethereum the average has been above $60, and the median has been close to $20.
In other words, the average fees for transactions on the Litecoin blockchain are 2,400 times lower than those on the Ethereum blockchain.
In the last 24 hours, more than 1.3 million transactions were recorded on the Ethereum blockchain, while there were less than 140,000 on the Litecoin blockchain.
The innovation of the OmniLite platform
So when it comes to the cost of recording transactions on the blockchain, Litecoin beats Ethereum hands down, albeit at ten times the speed.
Binance Smart Chain also allows for on-chain transactions at a very low cost, and with very fast timeframes, but it is certainly much less decentralized than Ethereum, or Litecoin itself.
The new open-source OmniLite platform facilitates the creation of decentralized tokens and smart contracts for crypto-assets, including for example NFTs.
NFTs, when they have to be traded many times, require low fees to have a market, and in this respect, Ethereum may be an obstacle at present. Hence there might be a market for a platform based on Litecoin instead.
OmniLite is a protocol based on a second layer built on the Litecoin blockchain and the tokens created with this platform are actually an extension of Litecoin, with the transactions of these tokens being recorded on the blockchain.
OmniLite and competition with Bitcoin
According to its creators, OmniLite will also facilitate the creation of stablecoins on Litecoin, which could have a market thanks to the very low costs of on-chain transactions.
However, it is worth noting that there are already many platforms for the creation and management of NFTs, and that the spread of the Lightning Network could make Bitcoin a very difficult competitor to beat with initiatives like OmniLite.
Not only does LN further reduce transaction costs, but it also reduces execution times as transactions on LN are almost instantaneous. With the help of other Bitcoin-based second layers, it will also be possible to create tokens, e.g. stablecoins, which can be exchanged extremely competitively on the Lightning Network. The only disadvantage would be the inability to register transactions on the public blockchain.