What’s Next For Litecoin (LTC)?
- is an open-source network
- Litecoin is fully decentralized
- It offers speed as well as scalability
- Litecoin has been constantly improved since its inception
Litecoin was created on October 7th of 2011 by Charlie Lee through an open-source client on GitHub, who had a master’s degree in computer science from MIT and even worked as a software engineer for Google (NASDAQ:) for many years. Litecoin is a fork; this means that Litecoin uses the Bitcoin source code. The maximum Litecoin Supply is 84.000.000. The Litecoin Network went live on October the 13th of 2011.
This currency was invented and designed to provide fast and secure and low-costing payments through the usage of unique properties of blockchain technology.
It differs from Bitcoin in terms of the hashing algorithm used, the hard cap, block transaction times, and so on. Litecoin has a block time of 2.5 minutes and low transaction fees, which makes it convenient for micro-transactions and point-of-sale payments.
Litecoin’s success is because it is simple and has plenty of utility benefits. More than 2.000 merchants, as well as stores, accept LTC across the entire world. The main benefit of Litecoin comes because it is speedy as well as cost-effective. As such, this makes it a solid alternative to Bitcoin, especially in developing countries where the transaction fees can be a deciding factor about what cryptocurrency makes logical sense to invest in.
Litecoin uses the Proof-of-Work (PoW) consensus algorithm to ensure that the transactions are confirmed quickly, efficiently, and without any errors.
Litecoin, as a result, transacts quicker than Bitcoin due to its faster confirmation time. This is the period between submitting a cryptocurrency transaction and the time through which the assets are received. As mentioned, Litecoin’sLitecoin’s time is 2.5 minutes, and Bitcoin’sBitcoin’s time is 10 minutes.
Only a finite amount of Litecoin will ever exist. This is because only 84 million tokens will ever exist. Since Litecoin is less expensive than Bitcoin, a lot of people will end up saying that Bitcoin can be ranked as gold and Litecoin as silver in terms of real-world equivalents. However, that being said, this is excellent for Litecoin as its lower price makes it a lot more convenient for smaller payments.
History of Litecoin
Litecoin was one of the first altcoins on the cryptocurrency market. The main reason it dominated any altcoins after its release is that it did modifications compared to Bitcoin, which were quite useful, such as faster processing and lower transaction fees.
Now, the developers, Charlie Lee, essentially wanted to develop a cheaper and faster version of Bitcoin. Once this was accomplished, the community started rising, and by 2013 it was one of the most popular currencies on the crypto market. When we fast forward a bit to May of 2017, Litecoin was listed by Coinbase, and the price started to rise to the highest level. Over time, it got the reputation of being a test network as developers who wanted to implement Bitcoin features and tried to run them on Litecoin first to test them out.
Now, while Bitcoin uses the SHA-256 algorithm, Litecoin uses a newer algorithm known as Scrypt. Now, don’t let the fact that it is newer fool you, as both require a lot of computational power to generate many possible solutions for their functions. When it comes to hashing power, Scrypt-based protocols have a lower hash rate than Sha-256 based protocols.
New Litecoins are created and can enter circulation through the process of mining.
Litecoin mining, as the name might imply, is the processing of a block of transactions into the Litecoin blockchain itself. This mining requires miners to solve algorithms, and the first one to reach a solution is rewarded with tokens as a form of payment.
The blockchain serves…