Litecoin highlighted how difficult it is to introduce a completely decentralised, fair PoW coin, in the current environment. The project is cautious of the fact that vast majority of new blockchains are compromised or too centralized to be resistant of being co-opted or attacked. It invoked Bitcoin and Litecoin as surviving users of a now-closed period in which it was possible to produce cryptocurrencies with fixed supply and borderless geographical distribution that would not appeal to VCs.
Monero Attack Comes As a Testimony of PoW Vulnerability
The caution by Litecoin is in light of a 51% attack on Monero. Result In August the Qubic mining pool seized control of Monero hash rate, disrupting more than 60 blocks, and Kraken suspended deposits. The price of monero declined by over 13 percent within a span of one week. The example pointed out to the threats to privacy coins and smaller PoW networks under limited mining distribution.
PoS chains Are Centralized-Like
Whereas PoS systems guarantee speed and efficiency, the control issues are raised. In a recent study, more than 60 percent of staked Ethereum has been held by five entities. The same evident in Solana. With concentration of voting power comes the risk of co-option, censorship and manipulation of the network- all of which Litecoin claims is in violation to the philosophies of decentralized finance.
Strong Money Freedom still Present
Litecoin and Bitcoin are the examples of still-extant permissionless, hard-capped, decentralized money. They have broad mining distribution and are immune to venture funding as a resistance to threats, both internal and external. The message of Litecoin is that it does not really matter whether the price is right.
