Completing payment transactions in a seamless, secure and transparent manner was the first-ever use case of cryptocurrencies. Although Bitcoin was the first cryptocurrency officially launched using blockchain technology, it also had its fair share of pitfalls. Litecoin (LTC), on the other hand, was designed to mitigate the shortcomings faced when completing payment transactions with Bitcoin (BTC).
This article is an in-depth overview of the Litecoin (LTC) ecosystem, its modus operandi, and a comparison between Litecoin and Bitcoin. Let’s find out more about this unique P2P cryptocurrency.
When Litecoin Started?
Litecoin (LTC) is one of the foremost cryptocurrencies launched shortly after Bitcoin. The unique P2P crypto debuted by Charlie Lee in 2011, focuses on facilitating instant cross-border payment transactions. Its payment transactions are low-cost and also completely eliminate the need for third-party interactions. Cryptography and mathematics are the main pillars of the Litecoin (LTC) network. Furthermore, providing its users with complete autonomy over their finances.
As part of its development, Litecoin also introduced the Litecoin Foundation. The foundation focuses on creating awareness for and facilitating the adoption of the Litecoin (LTC) cryptocurrency. It achieves this by educating users and prospective users as well as fostering an enabling environment for the growth and development of the LTC ecosystem.
How Litecoin Works?
LTC is a chain people think of as a reliable bank for the ‘unbanked’. One of its main focuses is to provide a financial network to people with no access to the traditional banking system. It is basically a simpler, cheaper, easy-to-use, portable version of Bitcoin. Interested persons only need to have access to the internet to create a wallet and start transacting with Litecoin (LTC).
The P2P crypto runs on an open-source software licensed under MIT/X11. It is also completely decentralized, with no central authority and with no need for input from any middleman whatsoever. The network is also secure with most of its security using reliable mathematics and cryptography.
Some of its top projects include;
- Litecoin Core – This is the backbone of the Litecoin ecosystem. Litecoin Core ensures instant payment transactions anywhere on the globe using its P2P technology. It is also considered “The most popular full node client”.
- Litecoin Mimblewimble Extension Block (MWEB) – this project provides fungibility and improves scalability on Litecoin. It was designed for over two years by LTC lead developer David Burkett.
- Lightning Network – official went live on Litecoin in 2018. It also focuses on solving Litecoin’s scalability issues. Notably, Lightning Network was first put forward in 2015 by Thaddeus Dryja and Joseph Poon.
Other important Litecoin projects include the Litecoin Card, Omnilite, and Litewallet.
How Litecoin Mining Works?
Did you know that every 2.5 minutes (150 seconds) Litecoin (LTC) mines new tokens? This will continue to take place until the last LTC token is mined in the year 2142.
Litecoin mining makes use of the Proof-of-Work (PoW) consensus mechanism. To mine LTC tokens, miners need to validate transactions on the blockchain. This is done by providing computing power to solve mathematical puzzles. Therefore, making it impossible for anyone to gain complete control of the network.
Once a transaction occurs, validation takes place before inclusion in the LTC chain. Simply put, Miners validate transactions, close the block, and open a new block. Miners furthermore receive LTC as rewards for their services.
Is It Worth Investing In Litecoin?
Before investing in a particular crypto, it is important to test the viability of the project. To test the viability of a project, metrics like;
- The project team,
- Is the founder still active in the project,
- Whitepaper and roadmap,
- Is there a real use case, etc. are of utmost importance.
Litecoin has shown time and time again that it is a viable project and so therefore a reliable and time-worthy investment. Also, amidst the current bear market, Litecoin continues to turn up as a survivor and has done so through previous crypto winters.
Litecoin vs Bitcoin
Litecoin and Bitcoin are two of the foremost cryptocurrency available today. They also have a lot of similarities, especially with regard to facilitating payments. However, there are a number of reasons why Litecoin seems to be a better alternative to Bitcoin in terms of completing payment transactions. Some of these reasons include;
- Litecoin transactions are cheaper than Bitcoin’s. Transaction fees are nearly inconsequential.
- Transactions on Litecoin are also much faster than on Bitcoin.
- It is also simple and easy to use. The only requirement is access to the internet.
- Also, while Bitcoin uses the SHA-256 algorithm, Litecoin makes use of Scrypt.
It is important to note, however, that Litecoin came from a copy of BTC source code. This means that Litecoin is not necessarily a fork of Bitcoin. It is a completely new blockchain with a unique genesis block.
Litecoin (LTC) Price Outlook
At the time of writing, Litecoin was trading at $56.25 with a market cap of $3,992,581,523 and a 24-hour trading volume of $394,693,307. The token price is also down by 0.2% in the last 24 hours.
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