Litecoin (LTC) is a decentralized open source cryptocurrency created to be a replacement and stable coin compared to Bitcoin. It is 14. the largest crypto coin market capitalization. The goal of Litecoin was to be a cheaper and faster alternative to Bitcoin that can be easily mined. In many ways, Litecoin was the first alternative coin. We will take a closer look at Litecoin, its unique features and what sets it apart from Bitcoin.
Litecoin was created to be a Lite version of Bitcoin, hence the name Litecoin. He created it Charlie Lee back in 2011. Charlie Lee was a software engineer at Goggle at the time. It shares many aspects similar to Bitcoin like Scheme of proof of work but it is easier and faster to create blocks and check transactions. Litecoin since it was created was supposed to be an alternative to Bitcoin. But due to market saturation and even more advanced cryptocurrencies Ethereum, failed to get much traction.
It is cheaper and easier to dig. The transaction fee is relatively low compared to Bitcoin or Ethereum. But unlike other coins, Litecoin’s offer is fixed at 84 million and he will be no more. This was done to maintain the value of Litecoin in the market. Photon is a cocoon of Litecoin just like Paise Rupees. Let’s take a look at some of the unique features of Litecoin that set it apart.
Features of Litecoin
There are several different aspects and features of Litecoin that set it apart from other cryptocurrencies. These unique features are the reason why Litecoin has developed a huge community over the years. Let’s look at some of these features.
Litecoin uses a proof of operation scheme in which different computers compete to confirm a transaction and earn prizes. This is called mining. People had to use really powerful computers in the race to see who first confirmed the transaction. This not only consumes a lot of electricity, but also means that a lot of people cannot participate in this process. How powerful computers are not easily accessible.
Therefore, a new algorithm called Scripting algorithm. This Litecoin has become even more decentralized to the point that people can dig it up even with their less powerful personal computers. And earn Litecoin as a reward.
Litecoin can inform 54 transactions per second. 54 transactions is not a huge amount of transactions, so Litecoin has adopted the Lightning Network to achieve more transactions. It was the first cryptocurrency to adopt the Lightning network. Lightning Network is a Layer 2 protocol that helps speed up transaction processing. This allows thousands of transactions to occur within a second.
Merger of mining
Litecoin uses the Scrypt scattering algorithm to allow a wider audience to mine Litecoin and check transactions, but it has also allowed people to mine another coin at the same time without using multiple resources or electricity. This gave the miners an even bigger incentive to mine Litecoin as they can mine 2 coins at the same time. This is called Merger of mining. Any other coin that uses the Scrypt algorithm can be merged to mine with Litecoin.
Popular meme coin Dog it also uses the Scrypt algorithm so miners often mine it along with Litecoin to maximize rewards earned.
Bitcoin VS Litecoin
Litecoin was initially created to be a lighter and much faster version Bitcoin after the success of Bitcoin. Bitcoin had its problems that Litecoin tried to overcome using the features we discussed above. One of the biggest hurdles with Bitcoin is the speed with which it can add a block to its blockchain and how quickly it can confirm transactions.
Bitcoin can add a block every 10 minutes. And perform 7 transactions per minute.
Litecoin, on the other hand, was able to run faster and reduced the speed of adding blocks by 4 times.
Litecoin can add a block every 2.5 minutes. And perform 54 transactions per minute.
Litecoin also used the Lightning network to allow thousands of transactions to take place per second. All of this has allowed users to execute transactions faster without paying a large transaction fee compared to Bitcoin. The Bitcoin transaction fee can be anywhere in between $ 2-10 while for Litecoin the eye $ 0.1-0.2.
Better accessibility and less resources
Bitcoin uses a Proof of PoS work a scheme that allows users to compete for transaction validation. only the winner can receive prizes. The problem is that it ends up taking up a lot of resources and power and only the most powerful computers can win. Litecoin fixed this by using the Scrypt algorithm and even the playground, so now even people with PCs can participate in the PoS scheme.
It also allowed miners to dig up 2 coins together so they could increase their rewards without using more resources or electricity.
Coin supply and market capitalization
Litecoin also has 4 times the supply of coins than Bitcoin. Bitcoin has a stock 21 million coins and there will never be more than that. Litecoin has a stock of 84 million coins which is 4 times more than Bitcoin. But that affected the value of Litecoin in the market. Bitcoin currently has the largest market capitalization and holds first place while Litecoin is in 14th position.
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Litecoin introduced many new possibilities for later altcoin. Being the first altcoin, it has gained a lot of community support and still has a growing list of supporters. He managed to pave the way for a faster and flawless transaction experience that was not possible with Bitcoin before. We hope we have helped you explain Litecoin, how it works and its features.
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