What is it and how is it different from Bitcoin?

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Lіtесоіn (LTC) is a user to user сrурtосurrеnсу based on an open ѕоurсе software project released under MIT/X11 lісеnѕеѕ, it is a сrурtоgrарhіс рrоtосоl that іѕ nоt mаnаgеd bу аnу central entity (central bank). Whіlе heavily influenced by Bitcoin, and in mоѕt regards technically almost іdеntісаl tо Bіtсоіn (BTC), Litecoin іѕ by far quісkеr аnd cheaper.

The Origins of Litecoin

While the identity of the Bitcoin creator Satoshi Nakamoto is enveloped in mystery, Litecoin’s creator Charlie Lee is in fact very active on social media. Charlie Lee, who is an ex-employee of Google, has the vision to create a “lighter” version of Bitcoin.

While Bitcoin is seen as an asset like “gold”, which is a store of value, Litecoin is seen as “silver”, a cheaper medium of exchange for everyday purposes. The Litecoin Network forked off Bitcoin Core client and went live on 13th October 2011.

What Makes Litecoin Different

Litecoin is based on the open-source code of bitcoin with some notable differences. There is three key difference between Litecoin and Bitcoin:

  • Speed
  • Quantity of coins in Circulation
  • Market Cap
  • Mining process

Speed
 Created by Charlie Lee to be the “silver” to bitcoin’s “gold”, one of the main differences between the two cryptocurrencies lies in their speed of transactions.

Litecoin is able to generate blocks four times faster than bitcoin, thus, is able to validate transactions faster and process a larger number of transactions.

Quantity of coins in circulation
 One of the reasons some cryptocurrencies hold intrinsic value is due to their limited supply. Once a certain number of bitcoin (BTC) or lite coin (LTC) are created, it will be fixed. There can be no more new coins.

While bitcoin has a limit of 21 million coins, lite coin will max out at the 84 million mark. Due to the larger supply, Litecoin will be cheaper than Bitcoin.

Market Cap
 Bitcoin’s market cap is roughly 36 times larger than Litecoin. However, Litecoin is still one of the top 10 ranking cryptocurrencies out of 3000 cryptocurrencies.

These rankings fluctuate based on price and number of coins in circulation.

Mining Process

Another significant difference between bitcoin and lite coin is the contrasting hashing algorithm used to solve a block. The number of coins distributed each time a solution is found is also different. When a transaction is made, it is then grouped with other transactions that have been recently submitted within one of these cryptographically-protected blocks.

While bitcoin employs SHA-256 (short for Secure Hash Algorithm 2) which is considered to be relatively more complex, lite coin uses a memory-intensive algorithm referred to as a script.

Different proof-of-work algorithms mean different hardware, so the mining rig must meet the proper specifications before producing lite coin.

The Future of Litecoin

Litecoin serves the same purpose of Bitcoin as digital cash, unlike other coins where digital cash is a secondary function. It is likely that in time Bitcoin and Litecoin could become the gold and silver standards, not just for purchases but for all other coins and tokens. In the future, when you need to purchase another type of coin or a physical product, you could just swap the coins you already have for what you need.

While it hasn’t received all of the press and hype of Bitcoin or Ethereum, Litecoin has all the ingredients to become one of the world’s standard currencies once cryptocurrencies become widely adopted in the future.

Want to learn more?
Read our Whitepaper here: https://skyrus.io/blockchain/wp-content/uploads/2018/12/Skyrus_Exchange_Whitepaper.pdf

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