After the emergence of Bitcoin in the crypto world, it was followed by multiple Altcoins that sought to prove the usefulness of cryptocurrencies and improve the functioning of Bitcoin. (Note: find the best altcoin exchange platforms on the market in this review) A few cryptocurrencies go with Bitcoin, which comes with significant digital assets, just like silver sits with gold. It is the most valuable and Bitcoin is different from other cryptocurrency, Often we consider Litecoin as digital silver, and Bitcoin is thought of as digital gold.
Many features of Litecoin resemble those of Bitcoin, and it is among the oldest cryptocurrencies at the top of the market cap. It is the first-ever alternative cryptocurrency that altered the code of Bitcoin. Litecoin is no different than Bitcoin, where it only performs better at transaction verifications. Litecoin applies almost everything existing on the Bitcoin platform, including decentralized governance and P2P transactions. Litecoin is a modern concept, and one can consider it the future of money.
Digital money will play a key role in future economies only if they move entirely to digital platforms.
Litecoin is a virtual currency that facilitates P2P transactions. Because no mediator is required as a trusted party, transactions are processed immediately and at a cost close to zero. The token of Litecoin belongs to the Litecoin network which is an open-source blockchain technology resulting from the Bitcoin forking. The difference between Bitcoin and Litecoin is that Litecoin utilizes a separate hashing algorithm, applies a distinctive hard cap, and blocks transactions time; more than Bitcoin.
According to the founders of Litecoin, the project is silver compared to the gold of Bitcoin. To rephrase it, Litecoin is relatively a less burdensome version of Bitcoin. Due to the application of distinctive hash algorithms, the verification speed of transactions on the Litecoin network is approximately 2.5 minutes. In contrast, Bitcoin takes almost an hour to process a transaction. So, Litecoin was developed with an objective; that is very similar to Bitcoin but offers a better experience.
In addition, the Litecoin network is exclusive, which secures the confidentiality of the users. Litecoin is stronger than a fiat currency in aspects of transaction speed and cost. The involvement of a central authority to authorize the transactions makes the processing time-taking and increases cost. Litecoin comes with the solution of decentralization, and nobody controls it, which deepens its inclusion in the financial system to the extent fiat currency can never reach.
How Does Litecoin Work?
Litecoin consists of nodes or computers that run the network by executing various tasks such as transaction verification and mining of Litecoin tokens. The block development on the Litecoin network is the same as it is on the Bitcoin network using the Proof-Of-Work (POW) mechanism. However, the system of Litecoin is a bit different because it allows users to mint coins utilizing user-level hardware like Windows Personal Computers & a Mac.
In the early stages of Litecoin, miners used to gain 50 LTC for building a block. By 2015, this reward was reduced to half i.e. 25 LTC. Moving forward, the reward would be halved until the upper limit on the number of tokens that can be sold; hits the digit of 84 million LTC. In addition, Litecoin founders have developed the Lightning protocol, an algorithm that facilitates the immediate settlement of global transactions. Atomic Swap is another technology of Litecoin that assists business activities in a climate of mistrust.
Pros And Cons Of Litecoin
Trading & investing in Litecoin has been extremely lucrative for early adopters. Many signs indicate a resurgence in the power of mammoth breakouts for the whole crypto market, and Litecoin has emerged as a survivor.
Pros Of Litecoin
- Transactions are much faster than Bitcoin.
- The transaction fees or trading fees of the Litecoin network are minimal.
- Litecoin has emerged as a reliable cryptocurrency and has proven itself as a survivor.
- Litecoin has resulted in remarkable profits in the past.
Cons Of Litecoin
- In the past, its developers sold vast sums of coins which hurt the confidence of some investors.
- The recent crypto crash has been terrible for Litecoin.
- As Litecoin halves its rewards, the effect of halving is not the same as that of the Bitcoin network.