Litecoin (LTC), a no central controlled peer-to-peer cryptocurrency launched on October 7, 2011 and went into service on October 13, 2011.
These are just a few of the things you can hear about Litecoin. At first sight, LTC, little respected among the 10 best cryptographic currencies on the market.
However, once we dig deeper, we notice that LTC offers an extremely useful and interesting application of the original Bitcoin blockchain.
For the short story, the criticisms received by Litecoin make us forget what it means and the functions it offers.
Litecoin – Origin of this digital currency
Litecoin, founded by former Google employee Charlie Lee. Former one of the first forks of the Bitcoin client kernel. Proposed as a solution to some of the bottleneck and scalability issues with Bitcoin. Including the number of transactions processed in a given time frame.
The advantage of Litecoin over Bitcoin price;
Transaction costs for payments are extremely low, and also can process payments about 4x times faster.
Litecoin first began to attract attention during its explosive growth back in November 2013, when it experienced a price surge of nearly 15 times its value. However, this price increase was short-lived and LTC hovered around $ 4 per LTC for about two years. Not until May 2017 when it began to regain momentum at a time when all cryptocurrencies experienced massive growth.
Litecoin also showed some creativity in adopting new technologies, we talk here about the blockchain technology, such as “Segregated Witness” and carrying out the first transaction “Lightning Network” which sent 0.00000001 LTC from Zurich, Switzerland, to San Francisco , in the United States in less than a second.
There a reason why comparisons between Litecoin and Bitcoin are numerous. With the exception of a short list of minor distinctions, LTC, exactly the same goal as Bitcoin. After all, used to be one of Bitcoin’s first forks.
Comparing Litecoin to Bitcoin not only makes sense from the point of view of usability, it also allows us to differentiate ourselves technologically. LTC, designed to become a peer-to-peer cryptocurrency and is actually capable of doing the same job as Bitcoin, but faster and cheaper.
The speed of transaction confirmation plays an important role in the speed of adoption of a currency. Bitcoin confirmations usually take about ten minutes and have increased steadily with periods of up to 2548 minutes. LTC network, able to confirm transactions at a very much faster pace.
The Litecoin verification period lasts 2.5 minutes. For each confirmed individual bitcoin block, four equally sized LTC blocks are confirmed.
Cost of LTC transactions
The cost of shipping any amount of Litecoin, around $ 0.09, while the cost of Bitcoin currently around $ 5.00. An instant benefit that Litecoin present over Bitcoin for small transactions, since sharing a $ 10 Uber with a friend makes no sense to most people if you have to pay $ 5 more than that. LTC offers the opportunity to pay for everyday consumer goods without high fees that can start to accumulate very quickly.
Mining of Litecoin
One of Litecoin‘s goals aiming to distribute the hash power more evenly than the Bitcoin network. The problem Litecoin‘s founder encountered, Charlie Lee, and wanted to address:
How the hash power of Bitcoin was essentially distributed among miners, miners’ groups and generally a much smaller (and less decentralized) subset of miners. The LTC intends to maintain the decentralized hash.
Litecoin mining also maintains relatively low transaction costs due to the intrinsically higher overall supply. There can only exists around 21 million Bitcoins, while there can exists up to 84 million LTC. Important because it makes mining less competitive, a more competitive mining, the higher the transaction costs become.
While Bitcoin experience some serious scalability issues due to its high transaction costs, LTC male itself able to produce block after block and keep its transaction costs lower. Admittedly, fewer people are using Litecoin than Bitcoin and the LTC could theoretically find themselves struggling with the same scalability problems if it knew scaled growth and use, but that’s just not the case today.
Litecoin also uses the Scrypt hash algorithm using far less processing power than the SHA256 Bitcoin hashing algorithm. By putting more emphasis on the use of high-speed RAM, LTC makes it much less possible for a single player (or a small group of big players) to dominate the mining world.
Fundamental differences between Bitcoin and Litecoin
It is important to also consider the differences in how Bitcoin and Litecoin are born.
The origins of the founder of Bitcoin are relatively mysterious. Satoshi Nakamoto, the pseudonym of the founder of Bitcoin, now essentially relegated to legend and myth.
The founder of Litecoin, however, has been publicly available and active in the community. You can find Charlie Lee on Linkedin or on Twitter under @SatoshiLite. After working at Google and founded Litecoin, he also worked in the engineering field at Coinbase, one of the largest cryptocurrency exchanges in the world.
Personally, I rather prefer Lee’s accessible and open nature to Satoshi, mysterious and secretive. And by a fact Lee have the power to shed light (Lite) of the situation is very humanizing.
Moreover, you would find it difficult to find pretensions or illusions of grandeur in LTC’s camp. It aims to make crypto currency accessible and usable for everyone. And it perfectly adapted to the role of follower of Bitcoin.
So is it Litecoin better?
Well, the fact that LTC can stay afloat for legitimate use speaks volumes, especially in a world of crypto currencies with more than 700 alt-corners with dubious intentions.
After all, it has a market capitalization of more than $ 3 billion. It does not happen by chance.
Compared to Bitcoin, which has a market capitalization around 33 times greater, Litecoin has several advantages. As mentioned above, LTC offer to its users lower transaction costs. Faster transaction processing times, a more decentralized mining network. And its founder even throws occasional tweets on Twitter. Technically, these advantages make the LTC a better currency for the vast majority of small transactions.
However, to be fair, the LTC has not yet been pushed to its limits. There are just not many people using it. For now, it does exactly what it was created for: offering fast, low-cost transactions in a way that Bitcoin could not do.
Reviews on this digital currency
Currently, Litecoin just another cryptocurrency which proved its usefulness as a decentralized payment method and inexpensive.
Litecoin has never been designed to deal with Bitcoin, but its technological advantages are a real threat. While it could theoretically be “better” than Bitcoin. Bitcoin has, with the network effect, quickly integrated a much larger and active user base.
Bitcoin also has the advantage of being a name close to the general public at the moment, while Litecoin no doubt much more obscure (especially with new hot currencies like Ethereum).
The vast majority of people who jump into the world of cryptocurrency will first buy Bitcoin, and if their appetite remains not feed, Litecoin and Ethereum.
Although Litecoin seems to work very well for what it exists. Interesting to make assumptions about situations where it could experience adoption and massive user growth. The followers of LTC have little meat to eat on their bones, it worth noting, only a matter of time before others start adding Litecoin to their wallets.
If, and it’s a big IF, Bitcoin might not solve its scalability issues, LTC will be there to offer at least the same utility without having to pay high fees (and even, if Bitcoin reaches the top of its scalability problems, extremely high!).
By then, Litecoin will likely be in the top 10 major market-based cryptographic currencies, doing the same thing it has always done.