Updated: Jul 17, 2022
The first Litecoin lightning wallet called Plasma is currently in development. Yes, you heard that right, a Litecoin lightning wallet.
But sir, I thought Bitcoin only has lightning network? and doesn't Bitcoin lightning make Litecoin obsolete?
Well the answer couldn't be further from the truth. In fact, Litecoin demonstrated the first lightning transaction before Bitcoin. In addition, lightning is a layer-2 technology that allows for instant, fast, and scalable payment channels on top of either Bitcoin and Litecoin networks. The reason it is more popular on Bitcoin right now is solely based on Bitcoin's limited base-layer capacity and scalability issues. Litecoin doesn't currently have this problem since its base-layer blockchain has 4x the capacity compared to Bitcoin and with the new Litecoin MWEB extension block further capacity and scalability can be achieved reducing the need for layer-2 technologies. However, lightning layer-2 tech is still useful for instantaneous payments such as buying groceries, or paying for gas.
It gets better though, the new Litecoin lightning wallet is expected to have cross-chain atomic swap capability. This will allow for seemless swapping from Bitcoin into Litecoin and Litecoin into Bitcoin on the wallet.
One other advantage to Litecoin on the lightning network is the opening and closing of the channels will always be 4x faster and should always have lower fees than Bitcoin.
The Plasma wallet could be released as early as October at the Litecoin Summit or at the end of the year.
The real question is will this wallet also include Litecoin MWEB integration? Can you imagine a Litecoin Lightning + Litecoin MWEB wallet. I would dare say this would be a killer app.