Litecoin may becomes one of the first altcoins to activate SegWit after all. After reaching a 70% activation threshold, the price of Litecoin rallied. However, the efforts to activate SegWit seemed futile without the approval of one specific mining pool, BW which currently holds 6% of the network’s hashing power. The decision rested on this pool given that others already stated that they would not support SegWit.
Many assumed that it would be hard to get the remaining hashpower required and there were even talks of implementing SegWit via a User Activated Soft Fork (UASF) like Bitcoin. This UASF would be added to Litecoin’s client, causing nodes to reject non-SegWit blocks once a certain block height was reached, resulting in economic pressure for miners to signal for SegWit approval.
Now, the situation has changed. Just a few days ago, the BW mining pool held roughly 10% of the network’s hashing power. In the face of miners leaving the pool seeking SegWit activation, BW has decided to signal its approval for the scaling update, allowing Litecoin to become a sort of testbed for Bitcoin’s own SegWit. Charlie Lee tweeted:
“BW just mined their first SegWit-signaling block! Thanks @www_bw_com for the support! From all Litecoin users, miners, and traders.”
Now that the the 75% threshold is reached, Litecoin must hold this approval rate of 75% for 8064 blocks. Meaning that in 8064 blocks, 6048 must signal support for SegWit, after which the upgrade will be implemented.
If no pool backs down from its support for SegWit, the update seems to be a granted. This will create a power testbed for Bitcoin, allowing users and companies that were on the fence regarding the update to get a first-hand look at what effect SegWit could have on Bitcoin.
The price of Litecoin has reacted possitively to this update, increasing 20% to 0.009831(Since then, Litecoin has dropped to 0.009419). More than 23k BTC have been exchanged in the LTC/BTC market yesterday. See live charts here.
If the update does take place, Litecoin will be the second altcoin to adopt SegWit (to the best of our knowledge). The first one being Groestlcoin.
In the meantime, Bitcoin’s SegWit continues to lack the necessary support for SegWit, although companies are showing their support of the UASF, which could be the most feasible way of activating SegWit.