What is Litecoin?
You can find these cryptocurrencies at Koinal that are a secure platform for buying and selling digital currencies. Among these cryptocurrencies that Koinal offers, Litecoin is also available on this platform.
Before you buy or sell Litecoin, make sure you have sufficient knowledge about this cryptocurrency. So let’s explore what Litecoin is.
What is Litecoin?
Litecoin is basically an open-source, peer to peer decentralized currency that allows its users nearly zero cost instant payments. It is a global payment network secured via the power of mathematics and allows its users to manage their finances.
Litecoin is a fork of the Bitcoin core client. Based on its unique liquidity, excellent trade volume, and sufficient industry support, Litecoin is considered a proven medium of commerce complementary to Bitcoin.
It would not be wrong to say that Litecoin has taken the world of the monetary transaction by storm. Compared with Bitcoin, the features of Litecoin surpass based on its faster transaction time (i.e., 2.5 minutes) and upgraded storage efficiency.
This guide will help you learn more about what Litecoin is. If interested, read on.
Litecoin is a popular choice of many people who are continually embracing the cryptocurrencies and are looking for more investment opportunities other than Bitcoin and Ethereum.
Did you know?
‘Litecoin’s price has risen by 7,921% right from its beginning in 2017 when compared with Bitcoin, that increased only by 1731%.’
History of Litecoin
Beyond doubt, each innovation possesses a story. Likewise, there is a history of Litecoin. It was first created by Charlie Lee, who is an ex-Google employee. Lee had the vision to create a version of Bitcoin that is lighter and faster than this.
Bitcoin is considered ‘Gold,’ whereas Litecoin is seen as ‘Silver.’ It is one of the means of transaction for everyday purposes far quicker and cheaper. Litecoin was first introduced in Oct 2017 through an open-source client on GitHub.
By taking the core code from Bitcoin, Charlie Lee made modifications to its code and work protocol that best allow for large-scale adoption of this cryptocurrency.
Right after its release, Litecoin achieved a massive market growth and reached $360.93. What’s more interesting about Litecoin? Anyone from anywhere can use it. Also, the fees for Litecoin users are quite lower than bank transfers and credit card companies.
Blockchain of Litecoin can handle increased transaction volumes based on its frequent block generation supported by its network. So, you can get faster transaction confirmation times.
Wallet encryption secures your wallet. You can also see your account balance and transaction. But before spending Litecoin, all you need to do is to enter a password. This encryption helps you protect your payments from trojans and wallet-sealing viruses.
Miners of Litecoin can get rewards with 25 new coins per block. The amount of this reward gets halved every 840,000 blocks and after every 4 years. Due to this reason, the Litecoin network is scheduled to produce only 84 million coins.
How is Litecoin different from Bitcoin?
Mining Process– Litecoin utilizes the ‘Scrypt’ SHA-256 algorithm in its proof-of-work mechanism. Its calculations are sequential as compared to SHA-256 in Bitcoin. Although both Bitcoin and Litecoin are based on blockchain technology, Litecoin’s frequency to generate blocks is relatively higher than Bitcoin.
Transaction Speed– Litecoin is 4x faster in transaction confirmation timings than Bitcoin that takes 10 minutes. However, Litecoin requires only 2.5 minutes to mine a Litecoin block and generate 25 coins.
Coin Creation– Litecoin Network is renowned for creating more coins than its counterpart- Bitcoin. Litecoin is capable of producing around 84 million coins as compared to coins issued by Bitcoin Network.
84 Million Litecoin– since Litecoin is limited to produce 84 million Litecoins that is far higher than Bitcoin with a limit of 21 million. This fixed amount of coin production protects the overall value of Litecoin from inflation that affects a currency’s value like a dollar, euro, or pound.
Is Litecoin Authorised?
The answer to this question is yes. However, the legal regulations about Litecoin vary from country to country. National financial officials have shown their interest in Litecoin and other cryptocurrencies at the sub-country level. So, it is safe to use Litecoin for trade purposes as well.
Litecoin has substantial chances for growth, uses, and widespread adoption. To date, we can only observe its adoption as a transaction medium by different companies. However, the future of Litecoin is beyond the guess of anyone.
Since no one can break the rules, Litecoin is even easier and cheaper to use. So, stop waiting and start coding!