Introduction to Litecoin

in News/Use Crypto by

Litecoin is the No. 2 digital currency in terms of turnover and No. 5 in terms of the market value of its assets (capitalization). Like Bitcoin, it integrates workstations into a network, between which electronic money is exchanged. It also has such features as anonymity and the absence of a single control authority (decentralization), as in the most popular cryptocurrency. Essentially, it is one of the most famous forts of Bitcoin (Bitcoin). The actual developer and founder of this cryptocurrency is Charlie Lee. He took as a basis the idea of a decentralized Bitcoin network, slightly changed the mining process, the protocol, as well as the source code of the network itself. Based on these changes, the developer has launched its own network.


Litecoin vs. Bitcoin

Brief history of Litecoin

This cryptocurrency was developed in the likeness of Bitcoin, and the creator’s identity, unlike the creator of the most popular cryptocurrency, is known to all – Charles Li, an employee of Coinbase, who previously worked at Google. He launched Litecoin on 10/13/2011, but success was achieved only in 2013 when the capitalization of this virtual currency increased sharply.

The sharp rise was followed by a gradual decline in interest in Litecoin, since the sizes of the blocks added to the blockchain became too large, and the structural units themselves became too complex. This led to a fall in the rate and loss of interest from the miners.

Who made Litecoin?

Differences of Litecoin and Bitcoin

One of the well-known drawbacks of Bitcoin is the low speed of generating a chain of blocks, which is why network users have many hours of transaction freezing. In Litecoin, this parameter is at least 4 times higher, which allows processing a greater number of transactions during the same time period. In addition, due to the high generation rate of the unit, additional protection against double waste is provided. The number of coins that can be mined also compares favorably.

Litecoin Capitalization

Both the exchange rate and capitalization of the currency have a pronounced positive trend. For example, the first indicator in April of the current year was only about $ 9, and the second – 443 million dollars. By capitalization, this currency at the end of 2017 occupied the 5th place in the world. Her course was about $ 54. During the year, it rose to $ 70, the maximum rate was $ 90. Exchanges that support Litecoin more than Bitcoin.



Litecoins Advantages

Since litecoin is essentially a slightly modified bitcoin, it is also mined. For mining Bitcoin, the SHA-256 algorithm is used, which uses a processor. Litecoin uses the script algorithm, which requires more memory. Like in the original Bitcoin, the issue of emission is limited and amounts to 84 million coins. In bitcoin 4 times less: 21 million coins. At the moment, only a quarter of this amount is already mined, so it will mine even more. At first, the miners for each new block received 50 LTC, but approximately every 4 years or 840 thousand blocks the amount of remuneration is halved. This is justified by the fact that the rate is growing, and the remuneration remains essentially the same. Now the reward for one new unit is 25 LTC, approximately in 2019, it will decrease by another 2 times and amount to 12.5 LTC.

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.