In the video below, George Levy, Blockchain Institute of Technology, explains the difference between a cryptocurrency coin and token.
Some define a coin as something that is used strictly as a means of electronic payment, and a token is anything else,. But George focuses on how the coins are defined in their evaluation. He opens the famous site: http://CoinMarketCap.com, and there there are tabs at the top labled “All”, “Coins”, and “Tokens”.
In George’s definition, a coin is a cryptocurrency which operates independently of any other platform. In other words, it has it’s own blockchain. Examples are BitCoin, BitCoin Cash, and Ethereum.
A token requires another blockchain (or “platform”) to run or host it. So for example, OmiseGO is built entirely on the Ethereum blockchain. Other examples of tokens that run on Ethereum are Augur and Golem. Other platforms include: NEO, Omni, Nxt, and Waves.
What he doesn’t mention is that Ethereum has a standard called an ERC-20 token, which you can learn more about here.
I started watching BitCoin Ben (your friendly truck driver) on Facebook each day. He now does one daily video cast regarding BitCoin, LiteCoin, and all things crypto. Although he has done some videos from home, he lately does it from the cab of his truck while waiting on other to fill the truck with whatever it is he has to haul. He’s a very friendly and funny guy; but his language is not always family friendly.
He’s really been pushing LiteCoin the last few weeks. In this morning’s video, he says his “inside sources” tell him that LiteCoin will go to $350 to $450 by year end (about 20 days away), and that by April of 2018 it will be $3,600. In a previous video, he said that LiteCoin is going to do what BitCoin did in about 18 months. So this implies he thinks it LiteCoin maybe around $10,000 to $15,000 by mid-2019.
He and other, such as Charlie Lee, MIT graduate, former software architect at Coinbase, and creator of LiteCoin classify BitCoin as a store of money, and LiteCoin as a currency used to buy things. LiteCoin has faster transaction times than BitCoin. Charlie has provided a rough analogy, comparing BitCoin to gold, and LiteCoin to silver.
Based on his videos, I traded some my BitShares to LiteCoin today. I’m also in the process of setting up a BitCoin IRA account. I placed sell orders for my gold eagles and silver eagles today. Even though Clif High predicts silver will go up, I see BitCoin and LiteCoin are going up now, so now is the time to act.
Like several other cryptocurrencies, litecoin was founded with the intention of improving upon the world’s first cryptocurrency, BitCoin. Google engineer Charles Lee was the mastermind behind the creation of litecoin in October of 2011, and the stated objective at that time was to achieve a silver standard behind BitCoin’s gold standard.
Like BitCoin, litecoin is a peer-to-peer cryptocurrency with open-source software, which means theoretically anyone can modify the code. There is no central regulatory authority managing litecoin, so the creation and transfer of coins is simply based on a cryptographic protocol which has been hard-wired into the software.
The technical improvements that litecoin provides over BitCoin and all other major cryptocurrencies lie in its usage of the so-called Lightning Network payment system, and the Segregated Witness, which is an attempt to improve upon the restrictive BitCoin block size. When used in tandem, these two enhancements permit processing of a greater number of transactions by the network at any specified time.
This has the happy effect of reducing the number and severity of potential bottlenecks, which BitCoin has been vulnerable to throughout its eight-year history. Other advantages which litecoin supporters point to with enthusiasm are the fact that payment cost for transactions is negligible, and that payments can be carried out about four times more quickly than BitCoin payments can be.
Litecoin vs. BitCoin
In terms of its market cap at least, litecoin has achieved its objective of becoming the silver standard, becoming the second highest mined cryptocurrency in the world, only trailing its BitCoin counterpart. Probably the most important difference between litecoin and it’s BitCoin predecessor is the fact that it takes only about 2 1/2 minutes to generate a block, while 10 minutes is required to generate a BitCoin block. As previously mentioned, the Segregated Witness was undertaken by litecoin to address this issue.
Techies understand however that there’s an even bigger difference between the two cryptocurrencies, mainly in the area of their respective Proof-of-Work algorithms. While BitCoin makes use of the SHA ‘256 hashing scheme, litecoin uses a ‘scrypt’ algorithm, which is based on the SHA – 256 algorithm, but has its calculations performed in a serial process, as opposed to BitCoin’s parallel processing.
Expensive transaction fees
Some business users have also discovered that the fees associated with BitCoin have become prohibitively large and out of sync with returned value. Another drawback to using BitCoin is that when using various payment channels, it is often necessary to initiate multiple transactions in order to achieve an overall economic objective, and those multiple transactions are all subject to individual fees. When situations like this arise, it simply places BitCoin out of the realm of affordable solutions, even when compared to older technologies like PayPal, whose transaction fees are not nearly so exorbitant.
LiteCoin Video Review
More special features of litecoin
The litecoin network is secured by mathematics, which allows individuals and companies to manage their own finances without the intervention of any regulatory body, and also permits anonymous transactions. It can provide faster confirmation times for all transactions, along with a greater efficiency of storage than any other math-based currency. Here are some of the special features about litecoin that make it stand out from the cryptocurrency crowd:
Outlook for litecoin
Litecoin is firmly entrenched as one of the world’s most popular cryptocurrencies already, and it does have some advantages over BitCoin which may be enough to eventually edge it past BitCoin in the overall rankings. While some businesses have already made the shift from BitCoin to litecoin, there are always changes to be expected in the cryptocurrency world, especially because of the open-source software capability. Stay tuned for more developments with litecoin, and probably with other digital currencies as well.
Chart from: https://www.worldcoinindex.com/coin/litecoin