What is Litecoin?
LTC is a currency whose symbol is LTC. This currency takes advantage of unique features in blockchain technology that enable fast, secure, and affordable payments. LTC is based on the BTC protocol but differs slightly in terms of hash algorithm and transaction block build time.
Litecoin creates a transaction block in just 2.5 minutes, and its transaction fee is very low. All cryptocurrencies use a special algorithm for activity. Litecoin uses an algorithm called Scrypt. The advantage of this algorithm over the Bitcoin algorithm is less workload and faster transaction confirmation. There is an interesting philosophy behind the development of Litecoin. If Bitcoin is gold, Litecoin is reminiscent of silver.
Who invented Litecoin?
Litecoin was developed by former Google engineer Charlie Lee. In 2011, Charlie Lee developed Litecoin by imitating Bitcoin. He was born in Ivory Coast, but immigrated to the United States with his family at the age of 13. The reason for their migration was the unstable political situation in their region. Charlie Lee currently resides in San Francisco, USA. In 1995, He entered the Massachusetts Institute of Technology, known as MIT, and studied computer science.
He worked as a computer engineer shortly after graduating, but his professional career began in 2007 when he joined Google. After a while, he became interested in the world of cryptocurrencies, so he left Google and joined the Coinbase exchange. He is currently working at the Litecoin Foundation and is trying to spread the currency Charlie Lee believes that cryptocurrencies compete in two ways: privatization and confidential transactions.
What is Litecoin Blockchain?
Litecoin uses a proof of work (PoW) algorithm called script. This algorithm has two important features: 1- Transactions can be approved faster because of the less workload 2- Calculations are easier in this algorithm. In the process of Bitcoin mining, the use of ASIC devices is mandatory. However, extracting Litecoins with graphics cards is a common method and the majority of people choose this procedure. Given that using ASIC devices is economically better, but many users prefer to use a graphics card for extraction.
Each Litecoin transaction approved in a block is converted into a digital packet. Then, these digital packets are connected to a set of blocks called a blockchain. During the extraction of each block, a number of Litecoins are generated and the miners are rewarded. This process is called Block Reward. The main goal of the Litecoin developer was to make extraction easy for anyone using a personal computer. Because of this, Litecoin developers resorted to a special and fast algorithm called Scrypt to reduce power consumption. The script algorithm limits memory. Therefore, it cannot be used to convert sequential to parallel processes.
Is Litecoin just a copy of Bitcoin?
BTC and LTC have a similar basic structure based on a cryptographic network and are offered in a decentralized way. However, there are many differences that are mentioned below:
Algorithm:
One of the main differences between the two currencies is the difference in proof-of-work cryptographic algorithms. Bitcoin uses the old SHA-256 algorithm but Litecoin uses the Scrypt algorithm. Differences in algorithms result in different speed performances. Both Bitcoin and Litecoin use computational power algorithms to process miner-approved transactions, but the main differences in extracting these currencies are transaction speed, processing power, and complexity between the two algorithms.
Differences in transfers:
Litecoin approves transfers faster than Bitcoin. This means:
Litecoin can make more transfers thanks to its faster block generation. If Bitcoin wants to adapt to this speed, it needs to make major changes to its code. High block speed reduces the risk of attacks – this theory applies to any network with this hashing power.
What are the advantages and disadvantages of Litecoin compared to Bitcoin?
In this section, we will examine the advantages and disadvantages of Litecoin over Bitcoin. In 2011, the Litecoin blockchain was created by modeling Bitcoin. In a way, these two currencies have a similar structure and function. The purpose of these two currencies is to facilitate peer-to-peer payments. Analysts cited three factors as to why Litecoin is superior to BitcoinSegWit upgrade by Litecoin
The SegWit update expands Litecoin’s blockchain capacity, resulting in faster transaction time and reduced transaction costs. Honestly, the dissatisfaction with the Bitcoin blockchain stems from the fees and time required for transactions.
Memory-intensive decentralized algorithm
According to the proof-of-work algorithm in Litecoin and Bitcoin, Litecoin takes a slightly different path for calculations. The Bitcoin extraction process is processor-intensive, while Litecoin is memory-intensive. Simply put, Bitcoin mining is only possible with high-performance integrated circuit devices. While Litecoin extraction can be done with a smaller and cheaper GPU.
Faster processing of transactions
Litecoin network processing blocks are much faster than Bitcoin. The process of processing a block in Litecoin takes place every 2.5 minutes, while this process takes about 10 minutes in Bitcoin. These structural improvements have improved the capacity of Litecoin over the Bitcoin network.
In addition to the application, Litecoin also has its drawbacks and limitations. Some of these restrictions are:
Litecoin extraction energy consumption is higher than Bitcoin.
Lite coin needs a secure digital wallet.
Litecoin security requires technical expertise.
Litecoin is less accepted than Bitcoin and other cryptocurrencies.
Final words:
As mentioned, Litecoin was invented by Charlie Lee as one of the oldest cryptocurrencies. In fact, this currency is the result of modifications to the Bitcoin protocol. Litecoin is abbreviated as LTC. Like Bitcoin, it has restrictions on production. Charlie Lee created this currency with the aim of completing Bitcoin and solving some existing problems. Transactions through Litecoin are very cheap and the cost of sending funds is only a few cents. In addition, receiving funds through the user takes only 2.5 minutes.
Many experts recognize this currency as an efficient payment platform. So many large companies have already announced their support for the possibility of payment using Litecoin. The future of Litecoin depends on new technologies used in system development. The use of new technologies not only affects the future of Litecoin, but can also affect the future of all currencies.
Source: The Pipsafe Team
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