Litecoin is an open source software project and one of the most popular peer-to-peer cryptocurrencies. Litecoin serves mainly as a currency and is considered by many to be one of the most similar cryptocurrencies to Bitcoin. There are, however, some key differences that make Litecoin attractive to many investors and those in the cryptocurrency world. The most notable advantage of Litecoin is that it can facilitate transactions significantly faster than Bitcoin and other digital coins.
|Token/Cryptocurrency/Symbol||litecoin (LTC) Ł|
|Current Litecoin Price: 1 LTC to USD|
55.09 USD 1.04%
|First Transaction||Ocober 7, 2011|
Who created Litecoin?
Litecoin was created by Charlie Lee, a former Google employee who later went to work for a leading exchange, Coinbase. He released Litecoin on October 7th, 2011 on GitHub and launched the Litecoin network less than a week later. It was originally a fork of the Bitcoin Core code base, with the main difference being a decreased block generation time and a different hashing algorithm.
What makes Litecoin different?
Faster block time with a mean block time of 2.5 minutes, compared to 10 minutes for Bitcoin. This means that in theory, transactions can be processed faster and more transactions can be handled with Litecoin than with a cryptocurrency like Bitcoin.
Different algorithm. The scrypt algorithm makes Litecoin reward high speed RAM over raw processing power. As a result, ASIC miners built specifically for mining Litecoin are more difficult and expensive to create than ASIC miners for Bitcoin.
Maximum coin volume. Certain coins do not have a cap and can expand endlessly as a blockchain develops. Others are limited to a predetermined amount, like Bitcoin, of which there will never be more than 21 million coins. Litecoin falls somewhere in the middle, with a maximum of 84 million Litecoin that can be accommodated. This is a bit of a happy medium, still providing some scarcity to drive up the value, but offering more than Bitcoin, so the price of a Litecoin could presumably remain low enough to be functional without sub-dividing excessively.
What is Litecoin mining?
As a decentralized currency, Litecoin allows for payments without a central authority validating transactions. This relies on a blockchain, or public ledger of all transactions which is maintained and protected by a network of mining computers. These miners are responsible for keeping consensus on the blockchain record so that no fake or fraudulent transactions can get through. Miners do this by solving complex math problems, then are rewarded with Litecoin currency for their “proof of work.”
Like most cryptocurrencies, Litecoin’s reward system is built into the algorithm on a predetermined scale which becomes more difficult over time as there are more Litecoins in circulation. This makes it so that if there is a price increase and more miners appear, the difficulty is adjusted every 2016 “blocks,” requiring more work for each of the miners to get their reward.
What kind of hardware is best for mining LTC?
Like Bitcoin, which Litecoin is built upon, the only profitable way to mine today is using an ASIC miner.