LiteCoin Vs Bitcoin


  • administrators

    With the spotlight shining brightly on Bitcoin in 2017, it is easy to forget the other cryptocurrencies which have gradually been developing in its shadow. One increasingly prominent cryptocoin is Litecoin - now the 6th largest cryptocurrency by virtue of market capitalization. So what is litecoin all about?

    ### What Is Litecoin?

    By definition, Litecoin is simply a digital currency (decentralized) based on Bitcoin. It employs similar encryption techniques to Bitcoin both in confirming transactions and also in creating and transferring funds. The most prominent difference, however, is that compared to Bitcoin, Litecoin features a greater coin mineable quantity and exhibits a faster speed of transaction confirmation.

    Aside from the numerous similarities with Bitcoin, Litecoin features among the highest market capitalizations not to mention longevity.

    Charlie Lee: The hands-on founder. A former MIT and Googler grad, Charlie Lee, created a digital currency similar to Bitcoin in 2011. His invention was much inspired by the need to minimize the amount of transaction time associated with digital coins - Bitcoin - which was painstakingly slow (up to 3 days). He designed Litecoin to be faster and more accessible.

    After the 2011 litecoin launch, Lee resigned from his prestigious post at Google and joined the coin’s development team at Coinbase.

    The most interesting thing about Lee however, aside from inventing the coin, is his active involvement in the development of the coin. This is contrary to Bitcoin’s founder who remains anonymous, other than a pseudoname - Satoshi Nakamoto.

    Litecoin Features

    Litecoin sets out to effect technological advances which enable it to assert and uphold its spot as a prominent cryptocurrency. They include:

    Blockchain

    In comparison to Bitcoin, litecoin’s blockchain is designed to handle more transactions. Through effecting constant block generation, Segrageted Witness (SegWit) and lightening, litecoin’s network supports a greater volume of transactions devoid of requiring future software modifications. As such, litecoin is a more efficient option courtesy of its lower fees and faster confirmations.

    Mining

    As aforementioned, litecoin uses Scrypt hashing algorithm. Not only will new miners find it more accessible compared to typical algorithms, but it also enables more parallel processing power. With Scrypt, litecoin mining can be done without utilizing ASIC-based hardware common with the SHA-256 algorithm used in bitcoin mining. Finally, litecoin’s network is set to create a maximum 84 million coins (4x more than the maximum scheduled bitcoin supply).

    Open Source Software

    Litecoin is itself open source software. It features a transparent release process which facilitates independent binary verification together with their resultant source code. What’ more, since the launching of this software came under the exclusive MIT/X11 license, users can run, copy, modify, and even distribute it.

    Differences between Litecoin and Bitcoin

    Without delving too much into the technical aspects, there are only a few major differences between these 'almost' similar digital currencies aside from their inventors of course. They include:

    1. Transaction conformation rate

    While Bitcoin’s algorithm exhibits an average confirmation rate of 10 minutes per transaction, Litecoin has an incredibly faster rate. It needs just two and a half minutes to confirm a transaction. Theoretically, this speed prevents the hard problem to solve in cryptocurrency - that of 'double-spending'.

    2. Quantity of coins which can ultimately be created

    After its inception, Bitcoin, through its algorithm indicated that only a maximum of 21 million coins could be created. Nonetheless, with litecoin, the figure is slightly larger with an approximate 84 million coins that can be created. This represents about 4x times more than the bitcoin figure.

    3. Slightly dissimilar cryptography algorithms

    While both coins operate under the proof-of-work algorithm, there is a slight disparity in the hashing algorithm. Bitcoin utilizes a hashing algorithm called SHA256 while litecoin one called scrypt algorithm. The idea is that using the Scrypt algorithm protects against centralisation of mining effort and creates a more balanced cryptocurrency. Other Scrypt coins include DOGE, feathercoin and karmacoin.

    Summary

    Even with the release of many new cryptocurrencies, only a few can assert their dominance in the industry as litecoin has managed. Reason is, aside from just offering the typical benefits associated with cryptocurrencies, it does so with, minimal hassles and even lesser market volatility. Everything considered, it comes as no surprise that litecoin, aside from being faster, is smarter and simply the new big thing in cryptocurrency.

    To buy Litecoin or not? Comment below with your sentiment.



  • Litecoin actually is a really good to invest in. Bitcoin, which DOES go for a lot, has a lot of fierce competition that makes it a very volatile coin. Litecoin, on the other hand, is a coin that doesn't get a whole lot of attention, and thus, remains relatively stable. Plus, with cheaper, more plentiful coins on the market, you can actually hold a lot more of them in your wallet that will only go up in value as crypto becomes more and more of an investment opportunity.


  • administrators

    @Wisecrypto Its an underdog, for sure. It seems to get a lot less attention than Bitcoin and Ethereum but a lot of people own Litecoin and they'll be looking for ways to spend it.


  • Supremo

    @joes True. I think Litecoin was a great idea but I think it did not innovate quite enough to sustain its competition with Bitcoin. Ethereum has far surpassed it and others like NEO and Cardano should theoretically pass it soon.


  • administrators

    @lucky777 Perhaps they'll spend their Litecoin on... Ether or Ada :)


  • Supremo

    @joes Many should. I mean if they own Litecoin in the first place it shows they're already on board with investing in altcoins. So logically the best altcoins to invest in now include obviously Ethereum and Cardano.


  • Supremo

    @joes said in LiteCoin Vs Bitcoin:

    @Wisecrypto Its an underdog, for sure. It seems to get a lot less attention than Bitcoin and Ethereum but a lot of people own Litecoin and they'll be looking for ways to spend it.

    I think litecoin is gradually coming up and obviously it's gonna have strong competition with bitcoin in the near further, remember, this is a coin that came on board in 2013 and bitcoin has been since 2009.


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