This article will give a brief introduction about what is LITEX all about and why is it so important.
What does LITEX do?
LITEX is a fully decentralized value exchange ecosystem. It is built on the layer 2 technology, and is able to realize off-chain transaction and cross-chain communication, which solves main technical pain points of blockchain. It carries the upper-level applications such as micropayments, decentralized exchanges and LX-apps. Through API layer, LITEX opens up its fundamental functions and supports rich value exchange ecosystem, connects between the crypto world and the reality, and builds the infrastructure of blockchain world.
What is layer 2 or Protocol layer?
Though almost everyone knows about blockchain, not so many can really understand / use / enjoy the services that offered by blockchain or related Dapps. The reasons can be boiled down to the following questions:
1) Low efficiency of mainchain. Public blockchains like Bitcoin, Ethereum by using POW as consensus mechanism, require every transaction to be processed and synchronized in the network. So the max number of transactions per second will be limited. While Bitcoin supports seven transactions per second and Ethereum twenty-five, Visa, on the other hand, supports up to 47,000 transactions per second at peak processing power. Obviously, such low efficiency of blockchain is not strong enough to support so called killer dapps, so the scalability has always been the first class problem to be settled urgently.
2) Isolated Public chains. In recent years, other public chains besides Bitcoin and Ethereum are becoming prevalent. EOS, for example, have received a lot of attention. However, the public chains are isolated from each other, and the information between them cannot be shared for crpto assets or smart contracts, so cross-chain communication is in need to achieve interoperability.
3）Transaction Fee is expensive. For public chain using proof of work, transaction fees are very high. This is not user friendly especially for those frequently used micro-payments. For public chains like EOS that doesn’t need transaction fee, you need to mortgage EOS to get RAM, CPU and other resources. All in all, transaction fee is relatively high in all of these public chains.
To solve the problems mentioned above, developers hope to find solutions in protocol layer, which can also be called layer2. Layer2 should be built upon its mainchain, and it can extend the utility of public blockchains outwards, letting us have interactions off-chain that can still reliably refer back to that core kernel if necessary.
With layer 2, the efficiency of mainchain can be better, information can be shared among public chains, and the costs will also be much lower. Is there any cost? Well, there is some. Since that off-chain transaction is not synchronized in all nodes, safety is undermined. But for micro-payments, the requirement for safety is not as high as large transactions, so using layer 2 for micro-payments is enough considering all practical factors.
Why layer 2?
Since Satoshi Nakamoto pictures Bitcoin as a “peer to peer cash system”, blockchain is related to finance from the start. Someone says blockchain is Internet 2.0, while Internet is about the transmission of information, blockchain is about the transaction of value. So LITEX knows that VALUE EXCHANGE is the key factor in blockchain world. To solve these technical pain points mentioned above, LITEX choose the most challenging and promising path-layer 2 technology. LITEX is willing to help extend the applicability and scalability of blockchain by developing underlying technology of infrastructure.
Core team members of LITEX all graduated from Peking University and and technical members are mainly from the Computer Department of Peking University and the Chinese Academy of Sciences.
Team also has rich experiences both in the game payment industry and blockchain technology. So the team is quite familiar with how to apply blockchain technology to payment and game industry. Founder of LITEX Leo Wang was a major manager from one of the biggest Chinese industrial payment company called YeePay. And later he founded a game payment company with an annual profit of more than 10 million RMB.
Consultants of LITEX have strong industrial background as well. Jeffrey Wernick, is an experienced bitcoin early investor, early investor of Uber and Airbnb; Wiliam Cong, is a professor of finance at the University of Chicago; Chen Bin, is a former architect of Paypal.
Till now, LITEX is working closely with top experts from Chinese Academy of Sciences, and has made some remarkable progress and has launched its testnet V0.2 on Oct. 24 2018 which demonstrates three main achievement
1. Upgrade of lightning network (Splicing in / splicing out)
2. Distributed fast routing
3. Cross-chain atomic swap between BTC and ERC20 tokens
More details will be elaborated in our official announcement of testnet V0.2.
Email: email@example.com; firstname.lastname@example.org
Official website: www.litex.io
White Paper: litex.io/wp
Ethereum SMART contract: 0xbc46d9961a3932f7d6b64abfdec80c1816c4b835