Cryptocurrencies are on the rise. Those who are more familiar with the stock market or with stock prices or who are trading on the internet have already recognized this. It can be assumed that the cryptocurrencies will one day make traditional banks and financial institutions superfluous.
There are now over 3,000 more or less successful cryptocurrencies. The most successful is Bitcoin, but there are already some competitors such as Ethereum or Neo that come closer every day. One of the strongest competitors of Bitcoin however, is Litecoin. Litecoin is a peer-to-peer currency that is embedded in an open source software project. The Litecoin system was released in 2011 by a certain Charlie Lee via an MIT license. The current version is available since January 2017. You can check the current Litecoin price here.
Litecoin – Bitcoin Hunter Number 1
The system of Litecoin is in many ways identical to that of Bitcoin. Creation and transmission of both cryptocurrencies is not central, but works via an open encryption protocol. All expenses, transactions and balance sheets are managed through the peer-to-peer network. This means that the communication takes place among peer participants in the computer network, who can both use Litecoins.
The Internet currency can be sent worldwide by any participant to any other participant almost free of charge and in real time. The network is secured by mathematical calculations. Anyone involved can freely decide on their financial transactions without any central administration being able to influence. Litecoin has a particularly fast transaction time. This is one of its key advantages, together with a very high storage efficiency.
An Internet currency with high trading volume
Litecoins are created using a special hash function that is cryptographically encrypted. Finding that hash is called mining. When generating Litecoins, a geometric series is formed. This series halves automatically every four years, until a predetermined volume of Litecoins is reached.
This protects the cryptocurrency from inflation. Like Bitcoin, Litecoin can be mined on one computer or even on several computers that belong to a system. The generation takes place in mining pools. 1 Litecoin can be divided into 100,000,000 units. In addition, it is possible to exchange Litecoin for Bitcoin or Fiat, which takes place via online exchanges. Litecoin, which was developed as an alternative to Bitcoin, is supported by trade and commerce, is liquid and has a high trading volume.
The differences between Bitcoin and Litecoin
As similar as the systems of Bitcoin and Litecoin might be, there are some not so insignificant differences. We already mentioned the fast transaction times of Litecoin. The blocks in which Litecoin is mined are generated every 2.5 minutes, instead of every 10 minutes with Bitcoin. The Litecoin network produces four times more units than the Bitcoin network.
In contrast to Bitcoin, Litecoin also uses a different, specially developed sequential function called scrypt. This way, the mining process can be divided more evenly among more people, while Bitcoin mining suffers from a certain centralization caused by mining process. The Litecoin algorithm is specially tailored for personal computers. Special functions also prevent the mining from being dependent on the financial strength of the participants. Brute-force attacks are also successfully prevented or at least hindered by the scrypt.
Litecoin – a cryptocurrency with a bright future
The memory necessary to mine litecoin is relatively expensive, but it can be worth the investment. After a brief drop in value, which also affected Bitcoin the Litecoin price did grow again. As of now, Litecoin is the world’s seventh largest cryptocurrency with a market value of nearly 5 billion dollars.
Litecoin can be traded on many different exchanges. We compiled a accurate step-by-step guide in this article on how to buy Litecoin.