What Makes Litecoin Special?
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:
- Block chain‘because litecoin can handle a greater volume of transactions than BitCoin and has more frequent block generation, the software can scale up in the future as usage is increased, without having to modify the software
- Wallet encryption‘users’ wallets can be secured so that transactions and account balances can be viewed safely, although a password must be entered before spending any litecoins
- Reward for miners the current reward for miners is 25 litecoins for a new block, with acoin ceiling of 84 million litecoins, a figure 4 times greater than BitCoin
- Open-source software‘the entire litecoin project was made available under the MIT/X11 license, which allows all users the capability of copying, modifying, and executing the software
- Community growth‘a number of litecoin communities have sprung up quickly since it’s launching, including litecoin forums, the Litecoin Teelegram, Reddit Litecoin, and the ability to do user searches on Twitter.
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