August 2, 2017
The coin that used to hold the second highest rank in 2013 was Litecoin which now holds the fifth largest market. Litecoin has not seen a significant lift from bitcoin’s price rise this time around as the price per LTC is around $3.80. [source]
Former Google engineer Charles Lee created this altcoin in an effort to improve upon Bitcoin. Namely, the speed to generate a new block is improved dramatically. Transactions are much faster. By the same token, however, this speed makes Litecoin’s Blockchain larger and more prone to producing orphaned blocks.
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances.
Created in 2011, the digital currency unit called itself as the silver to Bitcoin’s gold. It was made to equalize the way people benefit even though the computer hardware isn’t the best of all.
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
What makes Litecoin different?
Litecoin features faster transaction confirmation times (2.5 minutes) than most crypto currencies. Litecoin also has extremely low fees, and improved storage efficiency. Miners of Litecoin are awarded with 25 new LTC for every block completed, an amount which gets halved roughly every 4 years (every 840,000 blocks). The Litecoin network is therefore scheduled to produce 84 million litecoins, heavily reducing any scaling issues it might have. The Litecoin blockchain is capable of handling high transaction volume. Due to more frequent block generation, the network supports more transactions without a need to modify the software in the future.
Of all the altcoins, Litecoin is the closest to bitcoin in terms of structure and functionality. It’s also the second largest in terms of system value. The primary difference is It that litecoin has a slightly shorter block rate, meaning that a new block is created every 2.5 minutes versus 10 minutes in the case of bitcoin. This results in faster transaction times and a more rapid growth in the number of coins in circulation. Litecoin also relies on a different proof-of-work protocol than bitcoin – scrypt versus SHA2 – aimed at leveling the mining playing field and eliminating the advantage from using specialized computer hardware.
Many in the altcoin community have taken to calling litecoin the silver to bitcoin’s gold. A better description may be Google+ to Facebook. It’s a compelling product but one that’s just not used by enough people to make it useful as a medium of exchange today. Longer term, the egalitarian nature of the mining process makes litecoin more attractive than bitcoin. But overcoming bitcoin’s momentum and growing reach may prove difficult.