Categories: Crypto

What is Litecoin (LTC) Ł Cryptocurrency ? [Everything U Need to Know]

Litecoin (LTC) is much more than a virtual currency. Peer-to-peer means no centralized control over it; instead, money moves between peers on the internet. It serves as a method of paying individuals anywhere in the world without needing an intermediary to handle the transaction. The transactions are speedy and inexpensive to complete.

Peer-to-peer cryptocurrency Litecoin (LTC) is also an open-source software project distributed under the MIT/X11 license. In October 2011, Litecoin was an early bitcoin offshoot or alternative currency. Litecoin is almost identical to Bitcoin in terms of technical details.

Nearly ten years after Charles Lee founded it, it is currently the seventh-ranked cryptocurrency in market cap. It has seen some significant price increases over the years; for instance, the price of Litecoin rose by 100% in November 2013.

NOTE: Since Litecoin is a fork of Bitcoin, it is built using the same code but has undergone some modifications. Compared to Bitcoin, Litecoin transactions can now be completed almost instantly with much lower network fees thanks to recent updates.

Volunteers update the open-source code that powers the Litecoin network on a volunteer basis. Similar to Bitcoin, Litecoin makes use of blockchain technology to secure transactions.

Miners, processing computers that can gain Litecoin for carrying out the processing work in the background, keep track of transactions on the Litecoin network. Based on the current setup, the network will continue to issue new bitcoins for a maximum of 84 million before stopping.

KEY LESSONS

  • Former Google developer Charlie Lee created the first alternative currency, Litecoin, in 2011.
  • It was once referred to as the silver to Bitcoin’s gold and ranked third in market capitalization at its peak.
  • Since its structure resembles bitcoin, it has served as a testnet or proving ground for advancements that were ultimately included in Bitcoin.

Unique Characteristics of Litecoin

Since Litecoin is a Bitcoin derivative, it functions like its more extensive elder brother. But because of its unique characteristics, it is a less expensive alternative to Bitcoin, hence Litecoin.

A committed team of programmers oversees Litecoin, and they communicate via social media and the coding website Github. Because it is open source, you could produce a free clone of Litecoin and edit the code to use for apps, or if you wanted, you could even start your little cryptocurrency. 1 The wisest course of action for most individuals is to continue with current cryptocurrencies.

How is Litecoin operated?

Litecoin is a fork of the Bitcoin source code and shares many characteristics with it. Therefore, knowing Litecoin should be simple if you know how Bitcoin operates.

LTC, the cryptocurrency of Litecoin, employs encryption to permit ownership and trade, and its software establishes an 84 million onerous restriction on the total number of LTC that may ever be issued.

Like Bitcoin, Litecoin employs proof-of-work mining to allow anybody with the necessary processing power to add new blocks to its blockchain and profit from the extra Litecoins they produce.

The two key distinctions are that Litecoin utilizes a different mining algorithm and seeks to finish transactions more quickly. About every 2.5 minutes, new blocks on the Litecoin blockchain are added (as opposed to 10 minutes on Bitcoin).

The original goal of the Litecoin mining algorithm was to lessen the efficiency of specialist mining equipment. However, this eventually turned out to be ineffective. (Litecoin mining is still feasible today with hobbyist equipment, but large-scale miners still control most of the market.)

Since then, Litecoin has established itself as a valuable testing ground for other novel cryptocurrency features.

The “Segregated Witness” feature, which enables cryptocurrencies to include more transactions inside each block, was implemented by Litecoin in 2017. Later that year, Litecoin successfully executed the first Lightning transaction, demonstrating the potential of a layered network architecture.

Bitcoin versus Litecoin

Litecoin’s backers assert that it was developed as an addition to Bitcoin, not a replacement. They do assert that Litecoin does have certain benefits over Bitcoin, though. 3

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