All you need to know about Litecoin the fifth-largest cryptocurrency, with a market cap of more than US$12 billion dollars
What is Litecoin? Litecoin is a blockchain-based decentralized digital cryptocurrency same as Bitcoin. Lіtесоіn is an Open source global payment network and рееr-tо-рееr сrурtосurrеnсу software project released under MIT/X11 lісеnѕеѕ which allows non-zero-cost payments in a globe.
Litecoin is similar to Bitcoin having the same encryption technology to create and transfer funds to authorize the transaction.
In Litecoin, ledgers store all information and once its transaction is confirmed, it can’t be deleted or even modified.
People who are interested in cryptocurrency investment other than Bitcoin and Ethereum, Litecoin will be a popular choice.
Due to availability and lesser price, it is called as “Silver” cryptocurrency and Bitcoin is “Gold” cryptocurrency.
“If Bitcoin is Gold then Litecoin is Silver”
Also Read: What Is Bitcoin And How It Works
Birth of Litecoin
Bitcoin is created by an Ex-Google employee Charlie Lee on October 7, 2011, and was launched in a network on October 13, 2011, with the vision of creating a lighter version of Bitcoin.
Charlie Lee is one of the top active people on different social media’s and blogs.
Benefits of Litecoin
Litecoin has fast processing speed likely every block is processed in 2.5 minutes means 4x faster than bitcoin and this is the main goal, to reduce the timing of block confirmation so that more transactions can take place.
It clearly means that in a single day 14, 400 Litecoins are being mined. Its algorithm is difficult to crack.
Litecoin is having huge market growth. On December 18, 2017, Litecoin touched too high and it was almost US$360.93.
As compared to the price in the year 2016, it was US$4.40 it means almost 8200 per cent growth in one year.
The Scrypt Algorithm used by Litecoin is difficult to crack due to its proof-of-work model. It confirms a secure and faster transaction.
Litecoin is a digital cryptocurrency if we compared the processing fees of Litecoin that is lesser than other bank transfer and credit card.
Also Read: Singapore a honeypot for cryptocurrency and blockchain projects, data shows
Litecoin works on Blockchain Technology, so it records all the information and stores it permanently and also confirms the information is distributed to all peers in the network.
Litecoin works in p2p connections as a result of no need of middle person or server due to this it reduces the cost of the transaction. The transaction speed of Litecoin is faster as compared to Bitcoin.
As a result, a transaction takes lesser time and is secure that is why transaction fees are less and cheaper.
The difference between Litecoin and Bitcoin
Algorithm:
Both Bitcoin and Litecoin work on the proof-of-work algorithm.
The difference is, Bitcoin uses the SHA256 algorithm whereas Litecoin works on a newer Scrypt Hashing algorithm.
The number of Coins each cryptocurrency can produce:
In Bitcoin, one transaction added in the ledger takes 10 minutes where Litecoin, having the fastest speed to confirm one transaction in 2.5 minutes.
A total of 84 million Litecoins will be created and presently 61 million Litecoin is created in Litecoin’s Algorithm and it has a 4-times max capacity than Bitcoin.
Due to the faster speed, Litecoin produces max coins as compared to Bitcoin.
A Bitcoin network will exceed a maximum of 21 million coins, whereas Litecoin can billet up to 84 million coins.
The real-world importance of these algorithms is impacted by the process of mining new coins.
Both cryptocurrencies need substantial computing power to confirm transactions. SHA-256 is usually reflected to be a complex algorithm than Scrypt, while at the same time allowing a greater degree of parallel processing.
Market Capital:
Bitcoin’s market capitalization is more than US$67 billion, whereas Litecoin’s market capitalization is below US$3 billion.
Future of Litecoin in the crypto market:
Litecoin is the fifth-largest cryptocurrency, with a market capitalization of more than US$12 billion dollars.
The price of Litecoin was always higher in the crypto market
The value of Litecoin saw a committed and increasing dangerous run at the start of 2019.
The market capital of Litecoin in the year 2019 originated with 200 per cent higher and that also in only 6 months.
Investors who want to trade for longterm in cryptocurrency are having a choice of Litecoin with the goal to acquire max profit.
Litecoin’s price was US$4 in March 2017 to a high of US$320 in less than a year, providing 80x returns to its investors.
Also Read: The correlation between Bitcoin, social networks and “sense of community”
How to Buy or Purchase LTC:
Step 1: Create an account (From any official Website)
Step 2: Verify your identity
Step 3: Get a Litecoin wallet
Step 4: Find an exchange that sells Litecoin
Step 5: Deposit money and make the trade
Step 6: Withdraw the Litecoins to your wallet
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Image Credit: Ivaylo Sarayski
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