Charley Lee established Litecoin (LTC) in 2011, making it one of the first altcoins based on the Bitcoin model (BTC).
It’s “an instantaneous, near-zero-cost worldwide peer-to-peer Internet money.” Online banking systems that allow users to transmit money to each other work similarly.
LTC, on the other hand, instead of using standard cash, executes transactions in Litecoin units.
Involvement with Bitcoin
Unlike other altcoins, LTC was created to complement BTC, which is why it calls “silver crypto” and Bitcoin is called “gold crypto.” Analogies with Bitcoin are essential to grasp LTC.
According to their own acknowledgment, Litecoin is a Bitcoin imitation. Coinhako now accepts Litecoin, which can buy with fiat money or other cryptocurrencies.
Bitcoin versus Litecoin
While LTC and BTC are identical in terms of goal and technology, there are some differences including:
Methods of Mining
Simple cryptographic puzzles are solved for tokens in a race of computing power. Both use mining to prove benign intent, but their methods differ. Bitcoin uses the computationally expensive SHA-256 algorithm. But LTC uses Scrypt and hence can be mined on Mac or Windows.
Speed of Exchange
Litecoin’s average block mining speed is 2.5 minutes, which is four times faster than bitcoin’s 10 minutes. However, owing to network congestion, processing timings may vary. For starters, this helps merchants that deal with modest transactions on a daily basis. Another benefit is the wide range of miner bonuses.
A decentralized system encourages by quick transaction times. Faster transaction speeds have some downsides, including more orphaned blocks. Orphaned blocks occur when many miners generate a block that must add to the chain.
With a maximum supply of 84 million LTC, the total quantity of LTC is four times that of BTC. There are only 65 million LTC in circulation right now.
The Future of Litecoin
Despite 2019’s volatility, LTC remains one of the best places to test Bitcoin’s new blockchain.