What is Litecoin?

Silver is often considered the “little brother of gold”. Similarly, people often refer to Litecoin as “the silver to Bitcoin’s gold”. This is because it was created from the same open source code. Charles Lee introduced Litecoin in October 2011, predicating that it will take up the micro transaction space, while Bitcoin focuses more on expensive purchases. Litecoin is now one of the most popular cryptocurrencies with a market capitalization of about $4 billion. This digital asset has had a 1,400% increase so far this year. It reached the $87-mark for the first time ever in August 2017 after starting the year at about $4.

There are a few significant differences between Bitcoin and Litecoin. Litecoin offers low fees and fast transaction validation, which is particularly advantageous for small businesses. Litecoin also has a larger cap than Bitcoin at 84 million coins vs. 21 million. The block time, which is the time it takes for miners to confirm a block on the blockchain, is also shorter with Litecoin, at 2.5 minutes compared to the 10 minutes with Bitcoin. For merchants, Litecoin is a more attractive coin compared to Bitcoin, as there is less of a waiting time when ensuring payments from clients.

Facts about Litecoin

Open Source

Litecoin is an open source, peer to peer decentralized cryptocurrency based on blockchain technology that enables instant, near-zero cost payments to anyone in the world.

One of the Earliest Bitcoin Derivative Cryptocurrencies

Litecoin is one of the earliest Bitcoin derivative cryptocurrency as it was a fork of the core Bitcoin source code with some improvements which were lacking in Bitcoin.

Safer than Bitcoin

Scrypt algorithm makes it difficult for ASIC and specially designed hardware to mine Litecoin as compared to Bitcoin which is mostly mined by ASIC farms. On top of that Scrypt algorithm also makes Litecoin safer than Bitcoin.

4 Times the Maximum Supply of Bitcoin

Litecoin algorithm will allow only 84 million LTC to be created which is exactly 4 times the maximum supply of Bitcoin (21 million).

4 Times Faster Transaction Time Than Bitcoin

Compared to Bitcoin’s 10 minute transaction time, Litecoin transaction time is fixed at 2.5 minutes which makes it 4 times faster than Bitcoin. Therefore, Litecoin is envisaged as the perfect cryptocurrency for internet transactions and online shopping.

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