You must have come across litecoin price, litecoin value, and other cryptocurrencies, but that’s not withstanding, we are still going to explain what litecoin is all about in this post.
Litecoin (LTC) is an open-source decentralized cryptocurrency that was designed to be a more stable alternative to Bitcoin. By market capitalization, it is the 14th largest cryptocurrency. The goal of Litecoin was to create a less expensive and speedier alternative to Bitcoin that could be mined easily. Litecoin was the first alternative coin in many aspects. We’ll look into Litecoin in detail, including its unique features and how it differs from Bitcoin.
The name Litecoin comes from the fact that it was developed to be a lighter version of Bitcoin. Charlie Lee came up with the idea in 2011. At the time, Charlie Lee worked as a software engineer for Goggle. It is comparable to Bitcoin in many ways, such as the Proof of Work method, but it is lighter and speedier in terms of building blocks and confirming transactions. Since its inception, Litecoin has been marketed as a Bitcoin alternative. However, due to market saturation and the rise of even more complex cryptos such as Ethereum, it has struggled to acquire traction.
It is less expensive and simpler to mine. In comparison to Bitcoin or Ethereum, the transaction fee is rather modest. Unlike other coins, however, the supply of Litecoin has been set at 84 million and will not be increased. This is done in order to keep Litecoin’s market value. Photon is Litecoin’s sub-coin, exactly like Paise is to Rupees. Let’s take a look at some of Litecoin’s distinguishing characteristics.
Features of Litecoin
Litecoin is distinguished from other cryptocurrencies by a number of characteristics and features. Because of these distinguishing characteristics, Litecoin has amassed a sizable following over time. Let’s take a look at a few of those characteristics.
Scrypt Hashing Algorithm
Different computers compete to validate a transaction and win rewards in Litecoin’s proof of work method. This is referred to as mining. In a contest to see who could validate the transaction earliest, people had to employ extremely powerful computers. This not only consumes a lot of electricity, but it also excludes a large number of individuals from participating in the process. Because powerful computers are not cheap.
To address this problem, a new technique known as the Scrypt Hashing Algorithm was developed. This decentralized Litecoin has gone even further, allowing individuals to mine it even with less powerful computers. As a bonus, you’ll get Litecoin.
Litecoin has a transaction rate of 54 transactions per second. Because 54 transactions is not a large number, Litecoin used the Lightning Network to increase the number of transactions. It was the first coin to make use of the Lightning network. The Lightning Network is a Layer 2 protocol that speeds up transaction processing. Thousands of transactions can be completed in a split second.
Merge MiningRemove term: cryptocurrencies cryptocurrencies
Litecoin employs the Scrypt hashing method to allow a wider audience to mine the coin and validate transactions, while also allowing individuals to mine another coin at the same time without requiring any additional resources or electricity. Miners have even more incentive to mine Litecoin now that they can mine two coins at once. Merge mining is the term for this. Any other coin that employs the Scrypt algorithm can be mined alongside Litecoin in a merged mining pool.
a well-known meme Because Doge employs the Scrypt algorithm, miners typically combine it with Litecoin to enhance their rewards.
Bitcoin VS Litecoin
Following Bitcoin’s popularity, Litecoin was built to be a lighter and more speedier counterpart of Bitcoin. Bitcoin had flaws that Litecoin attempted to address with the features listed above. One of Bitcoin’s most significant challenges is the speed with which it can add blocks to its network and validate transactions.
Bitcoin can add a block every 10 mins. And carry out 7 transactions per minute.
Litecoin, on the other hand, was able to perform better and cut the time it took to add blocks in half.
Litecoin can add a block every 2.5 mins. And carry out 54 transactions per minute.
Litecoin also made use of the Lightning network, which allowed for thousands of transactions per second. All of these allowed users to complete transactions more quickly and for a lower transaction charge than Bitcoin. Bitcoin transaction fees range from 2 to 10 dollars, whereas Litecoin transaction fees range from 0.1 to 0.2 dollars.
Better accessibility and less resource-intensive
Bitcoin employs a Proof of Work (PoW) system that allows users to compete for the right to validate transactions. Only the winner is eligible for the prizes. The problem is that it consumes a lot of energy and electricity, and only the most powerful computers are capable of winning. By employing the Scrypt algorithm, Litecoin was able to level the playing field, allowing even those with personal computers to participate in the PoS scheme.
It also allowed miners to combine two coins to increase their payouts without spending any additional resources or electricity.
Coin Supply and Market Capitalization
Litecoin also has a coin supply that is four times that of Bitcoin. Bitcoin has a limited amount of 21 million coins, which will never be exceeded. Litecoin has an 84 million coin supply, which is four times that of Bitcoin. However, this had an impact on the market value of Litecoin. Bitcoin now has the largest market capitalization and is ranked first, with Litecoin being 14th.
For later altcoins, Litecoin opened up a slew of new options. Because it was the first altcoin, it received a lot of support from the community and continues to do so. It was able to open the road for a more seamless and speedier transaction experience, which was previously unavailable with Bitcoin. We hope this explanation of Litecoin, how it operates, and its features was helpful.