Litecoin is an advanced, next-generation digital currency that allows anonymous and heavily encrypted transactions between people across a peer-to-peer (P2P) network. It’s based on blockchain technology like most other cryptocurrencies and it is not backed or controlled by any government, central bank, or central authority.
Its is an open source cryptocurrency, meaning that anyone has the right to study, modify, and distribute the software for whatever purpose they want. Like any other currency, in exchange for goods and services, Litecoin can be offered.
What is Litecoin Used For
Like its contemporaries, Litecoin acts as an online payment system in a certain sense. Users can use it to pass currency to each other, like PayPal or the internet network of a bank. But its performs transactions in litecoin units instead of using U.S. dollars.
Who is Founder and When it Start?
Litecoin was published two years after Bitcoin’s launch on October 7, 2011. It was created by Charles Lee, a former Google programmer. According to its creator, this coin has often been called the ‘silver’ to bitcoin’s ‘gold’ over the years and is a popular cryptocurrency.
What sets Litecoin apart from Bitcoin is that it currently works on a cheaper and faster scale, with Litecoin’s transactions currently being processed 4x faster than Bitcoin’s. Litecoin’s mission is to be a “peer-to-peer Internet currency that enables instant, near-zero cost payments around the world”. It is also guided by its vision to complement Bitcoin to solve the world’s growing digital payment needs.
What is So Special About Litecoin
- Speed. It used the Scrypt algorithm in its Proof-of-Work model, ensuring a quicker and safer transaction. The transactions are faster because of its block time difference of 2.5 minutes as opposed to BTC’s every 10 minutes. The transactional fee is reduced as well, making transactions cheaper than those using Bitcoin.
- Mining. Proponents of this coin like the mining distribution method for LTC’s scrypt mining which is believed to be a fairer model. Its mining involves the use of adding blocks to its blockchain. The LTC miner who first verifies a block earns a certain number of Litecoins, which is reduced as the mining continues.
- Digital Scarcity and Liquidity. Its has a lot more coins than BTC and in the end, miners will produce 84Mn LTC. This adds both digital scarcity to these tokens while increasing market liquidity.
- Experimentation. LTC developers have added Segregated Witness and processed Lightning Transactions well before BTC. This being said LTC proponents believe the development team is more willing to test and trial new code.
Difference Litecoin vs Bitcoin
- Bitcoin has been the dominant name in cryptocurrencies since 2009, but Litecoin and others have joined the fray.
- Litecoin can produce a greater number of coins than Bitcoin and its transaction speed is faster, but these factors are largely psychological boons for the investor and don’t impact the value or usability of the currency.
- Bitcoin and Litecoin use fundamentally different cryptographic algorithms: Bitcoin uses the longstanding SHA-256 algorithm, and Litecoin uses a newer algorithm called Scrypt.
The Highest and Current Price Market
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