Key Takeaways:
- Created in 2011 and built on the Bitcoin blockchain, Litecoin (LTC) is a popular cryptocurrency aimed at addressing centralisation issues and improving mining dynamics.
- Designed by former Google engineer Charlie Lee, Litecoin boasts faster transactions and a 2.5-minute block generation time, compared to Bitcoin’s 10 minutes.
- Litecoin’s Scrypt hashing algorithm aims to prevent dominance by large mining operations, offering a decentralised and secure payment solution.
- With its larger coin supply and faster processing, Litecoin excels in everyday transactions and micropayments.
- Both Litecoin and Bitcoin offer value in different areas like transaction speed, fees, and potential long-term value.
What Is Litecoin (LTC)?
Litecoin (LTC) is a popular cryptocurrency that was created in 2011 as a fork of the Bitcoin blockchain. It was designed to address concerns about centralisation and make mining more difficult to dominate for large-scale mining firms. Litecoin has a faster transaction processing time than Bitcoin and was designed to be a medium for daily transactions.
Created by former Google engineer Charlie Lee, who referred to it as “the silver to Bitcoin’s gold,” Litecoin has a maximum supply of 84 million coins, and its blockchain generates a new block every 2.5 minutes.
How Does Litecoin Work?
Litecoin works on a decentralised network similar to Bitcoin. It utilises blockchain technology to record and verify transactions through a Proof of Work (PoW) consensus mechanism. The Litecoin network consists of nodes that maintain a copy of the blockchain and participate in the transaction validation process.
Transactions on the Litecoin network are grouped into blocks, which are added to the blockchain through mining, where miners use computational power to solve complex mathematical problems. The first miner to solve the problem adds a new block to the blockchain; in return for their work, miners are rewarded with newly minted Litecoins.
One of the key differences between Litecoin and Bitcoin is the hashing algorithm used for mining. Litecoin uses Scrypt, which is designed to be memory-intensive. This makes it more difficult for large-scale mining operations to dominate the network.
Litecoin also has a faster block generation time of 2.5 minutes compared to Bitcoin’s 10. This results in faster transaction confirmations. Additionally, Litecoin has a maximum supply of 84 million coins, four times higher than Bitcoin’s 21 million.
Overall, Litecoin aims to provide a faster and more efficient alternative to Bitcoin for everyday transactions while maintaining the core principles of decentralisation and security.
What Is Litecoin Used For?
Litecoin is primarily a digital asset for instant peer-to-peer (P2P) transactions at affordable rates. It is often considered a faster and more efficient alternative to Bitcoin for everyday transactions. Some view it as a real-world testnet for Bitcoin, allowing for experimentation to understand the impact of certain moves on a live network.
Additionally, Litecoin has value for micropayments and is integrating features like smart contracts and the MimbleWimble upgrade to enhance its usability and privacy. Overall, Litecoin aims to provide a decentralised and secure payment solution with low fees and fast confirmations.
What Is the MimbleWimble Upgrade?
First conceived in November 2019, the Litecoin MimbleWimble (MWEB) upgrade is a privacy and scalability enhancement implemented on the Litecoin network; it finally launched in May 2022. MWEB conceals sender and recipient addresses, as well as transaction amounts, to provide more transaction privacy. Users need to upgrade their software to the latest version to activate MWEB.
Which Is Better: Litecoin or Bitcoin?
Whether Litecoin or Bitcoin is better depends on individual preferences and specific use cases.
Bitcoin is the most well-known and widely accepted cryptocurrency with a higher market cap. It is seen as a store of value and a trading asset. Litecoin offers faster transaction processing times and lower fees, making it more suitable for everyday transactions and micropayments.
Ultimately, the choice between Litecoin and Bitcoin depends on which factors users value the most — including fast transaction speed, low fees, or a potential long-term store of value.
How to Buy LTC
Litecoin (LTC) is listed in the Crypto.com App as part of the growing list of 250-plus supported cryptocurrencies and stablecoins, including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), USD Coin (USDC), and Cronos (CRO).
Crypto.com App users can buy Litecoin at true cost with USD, EUR, GBP, and 20-plus other fiat currencies and spend it at over 80 million merchants globally using the Crypto.com Visa Card.
Alternatively, users can also trade LTC on the Crypto.com Exchange.
Download the Crypto.com App to start buying LTC today.
Conclusion
In summary, Litecoin offers a compelling alternative to Bitcoin, excelling in faster transactions, lower fees, and broader coin supply. As a driving force for innovation in cryptocurrency, Litecoin’s user-friendly features and ongoing upgrades position it as a dynamic player in the digital financial landscape.
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