Litecoin (LTC) $778 Transaction Costs User $17,000 Transaction Fee

by Albert Kim

They say new technologies come with new challenges and these are beginning to show up at a time when the ordinary user is coming onboard. Transaction costs in blockchain are meant to be automatic and standard. However, a Litecoin user appears to have made a huge error to send a small transaction which attracted a higher transaction fee that the actual amount sent.

The user only sent 8.88 LTC ($778) only for the system to charge a fee of 200 LTC which is equivalent to $17,000 at press time.  In actual sense, the user paid 22 times on transaction fee.

The huge transaction fee appears to be a fatal error and it remains a mystery how it was calculated. Questions have been raised on what would have happened if the wallet did not have the erroneously charged fee.

Read also: CryptoProcessing: a Packaged Solution for Modern Cryptocurrency Businesses

Hefty Transactions Fees went to a Chinese Mining Farm

However, the mistake appears to be on the part of the LTC sender while consolidating their portfolio. According to reports, the transaction fee went to a mining pool, LTC.TOP based in China. In past similar mistakes, it is possible to reverse the transaction by simply contacting the pool.

The account has been active since mid-2018 has over 2.500 LTC transactions. This is the first time the account has reported such an error and cannot be blamed on the system but the user. $17,000 worth of LTC is a huge sum and I can only be blamed on the user mistake; it is an isolated case.

Mistake Chain Reaction on LTC Network

As much as the transaction appears isolated, it caused a chain reaction across the Litecoin network which saw a spike in transactions fees hitting a high of $0.70 a surge which was experienced when LTC was trading at a high of $400 in December, 2017. However, the spike stabilized within hours with the cost getting back to normalcy.

200 ltc fee

Looking at the address and related transactions, a lot of transactions has passed through and there is likelihood that it is owned by a business. However, the mishap could be caused by a human error or a bot. However, the pool miners should be a happy lot.

To play it fair, it would only make sense if the pool, TLC.TOP returned the transaction fee to the rightful owner. It is a good lesson to the industry to counter check your transactions before hitting the ‘send’ tab.

Related Posts