Category
>Financial Analytics

Litecoin - Meaning, How it Works, Litecoin vs Bitcoin

Mallika Rangaiah
Sep 21, 2021

The term “Cryptocurrency” has emerged as an immensely popular trend over the past decade. Yet despite its popularity, many newbies still remain uncertain about this term. The term has earned many misgivings and raised several doubts and differing opinions among the audience.

Interestingly, these currencies are developed by the use of advanced technologies which can alter the manner in which economies work. Their volatile nature attracts a high level of attention, while also subjecting them to quite some criticism.

This eccentric attribute has boosted a great deal of interest amongst the speculators, investors and also among those who are interested in observing how the cryptocurrency market will be unfolding in the future.

Amongst all these cryptocurrencies, the most popular one which has become a rising fame in the financial world is Bitcoin. Alongside Bitcoin, some other known cryptocurrencies include Ethereum, Dogecoin and the one we will be featuring in this blog - Litecoin.

This is a peer - to - peer internet currency, which is at times even referred to as “Bitcoin’s little brother” or even the “lite version of Bitcoin.” In November 2013, the currency faced its first considerable price surge. The rapid surge made it the hottest new trend in the world of cryptocurrency at that time.

You can check out the History of Litecoin in detail here.

In this blog, we will be talking about Litecoin, how it works, how it can be purchased and also how the cryptocurrency differs from the leading Bitcoin.

What is Cryptocurrency?

Now, to get an idea of what exactly cryptocurrency is you’ll firstly need to get an understanding of how money works. Initially we started out with physical money, that includes notes and coins.

Then sprouted the e-Money, aka the electronic money that reflects on our e banking applications. Both these forms of money are issued to us by the Government.

Later emerged the cryptocurrency, that is a kind of electronic money which has not been issued by any Government. We also call it “Math Money” since this form of money is developed and managed through blockchains, aka computer networks that are powered through advanced mathematics.

Cryptocurrency is basically an online only digital currency that serves as a direct financial exchange among users, barring the involvement of any third party or bank., unlike the currency system that we are generally more accustomed to, that makes use of a central bank. Several cryptocurrencies are decentralized, which include Litecoin.

These currencies are then controlled at the hands of the country’s government or the bloc of countries, which are issuing that currency, be it a euro or a dirham. The primary purpose of this form of currency is the decentralization of the banking system. This is largely owing to the inconveniences that are faced by the public while sending or receiving money across financial institutions or to a different country.

These inconveniences have only escalated in the present times, owing to which cryptocurrency becomes an intriguing solution for technology buffs and institutions engaged in such transactions.

It has to be kept in mind that cryptocurrencies aren’t really stored in the traditional manner, i.e in a scenario where the currency would be stored inside a bank account, the transaction record is stored onto the blockchain.

What is Litecoin?

Set up in 2011 by Charlie Lee, an ex Google employee, Litecoin (LTC) is a peer-to-peer cryptocurrency. It shares several similarities with Bitcoin and this cryptocurrency is actually based on the original source code of Bitcoin.

Litecoin had been set up for being leveraged for less costly transactions and for being more efficient in terms of daily use. Relatively, Bitcoin is considered as a store of value to be adopted in the long term. The coin limit market cap is much higher on litecoin than bitcoin, and the mining process is far quicker. This means transactions are faster and cheaper, although generally smaller in size.

Similar to Bitcoin, Litecoin is a form of digital money. By making use of the blockchain technology, litecoin can be adopted for direct transfer of funds between individuals or businesses. This helps to ensure that a public ledger is recorded of all the undertaken transactions and which enables the currency to set up a decentralised payment system that is devoid of censorship and government control.

(Suggested Read - Bitcoin Mining )

On several occasions Litecoin is referred to as the “silver to Bitcoin's gold.”

In the present scenario and at the time of writing this article Litecoin’s market cap is over $12 billion.

Watch this video for a deeper understanding of Litecoin :

How does Litecoin Work?

For coming to terms with how litecoin works, it would be effective to firstly gain an idea of the blockchain technology. Let’s understand this term with an example.

Suppose you have lent money to a certain person who, at a future point, claims you have not lent it to them and refuses to give it back to you. This, in a normal scenario would leave you helpless and resigned, as you realise you can’t really do anything about it.

Now imagine another scenario, where you have witnesses who have recorded you lending the money to this person and also them claiming to return it soon and posted it on popular social media platforms. This becomes useful evidence since the person committing the fraud would not possibly be able to hack the evidence from the Internet.

Yet another example can be that of Google Doc. Whenever we create a particular document and then share it with people, the document is distributed, rather than being copied or transferred.

This sets up a decentralized distribution chain that offers everyone simultaneous access to the document. This way, all the alterations made to the document are recorded in real-time and no one is locked out while waiting for other parties to incorporate the changes, which in turn ensures that the changes are transparent.

These are relevant analogies that can be used to depict the technology that is the blockchain. A blockchain is mainly a handful of computers (nodes) that are connected to each other. Each of these computers possess the same data, which can be a ledger for instance.

If someone wishes to hack this data, they’d be required to hack most of these computers simultaneously to gain access to the data, which definitely poses quite a challenge. The data stored within the blockchain is secured via encryption techniques and the transactions that take place through blockchain technology are considered anonymous.

Just like other cryptocurrencies, Litecoin is mined by the user, in exchange for the currency. By solving intricate math equations, miners verify transactions and generate fresh blocks.

Through Litecoin, the miners are generally awarded with 25 fresh Litecoins per block they mine, a figure which gets halved in the period of every four years, on an average, basically every 840,000 blocks.

How to purchase Litecoin?

Litecoin, like other cryptocurrencies, cannot really be purchased by the traditional method of using traditional brokers. Rather it is purchased in a digital wallet, through one of the cryptocurrency exchanges, or via an online brokerage firm that offers crypto trading.

Several factors like fees, accessibility and security need to be taken into account prior to making a decision regarding where to purchase and maintain cryptocurrencies.

Irrespective of wherever one buys these Litecoins, they are required to be stored inside a cryptocurrency wallet. This wallet, which could be an actual hardware or a software program, enables the user to send and receive digital currencies and also allows them to oversee their speculative stocks.

Difference between Litecoin and Bitcoin

Litecoin vs Bitcoin

Transaction Speed

Litecoin has a much higher transaction speed as compared to Bitcoin. The blocks are generated faster and the transactions are processed faster as well, with a high number of transactions getting processed over the same time period.

( Suggested Read - Bitcoin vs Bitcoin Cash )

Number of Coins

Both the cryptocurrencies have a finite number of coins that are available for circulation. While Bitcoin has a total of 21 million coins available, Litecoin has 84 million coins available – the cryptocurrency’s coins are four times more than that of Bitcoin.

Market Cap

Litecoin has a smaller market cap as opposed to Bitcoin. While Litecoin’s market cap presently stands at over $12 billion, Bitcoin’s market cap presently dangles over $900 billion.

Algorithms

Both Litecoin and Bitcoin adopt varying algorithms. While Litecoin adopts Scrypt, Bitcoin makes use of SHA-256.

Both the algorithms have a varying impact on how the process of mining fresh coins takes place. A great degree of computing power is required for confirming transactions for Litecoin and Bitcoin. Generally Bitcoin’s algorithm SHA-256 is far more complex to that of Litecoin’s algorithm Scrypt.

The miners have tried applying some complex techniques for being able to mine bitcoins effectively. They have adopted ASICs, i.e hardware systems set up for mining Bitcoins.

Scrypt on the other hand, has been set up in a manner which makes it less vulnerable to ASIC-based mining custom hardware solutions, which offers it an advantage by making it more accessible for the people who wish to mine.

Halving Intervals for Block Rewards

While Bitcoin has a block reward halving for every 210,000 blocks, Litecoin’s block reward halving is undertaken every 840,000 blocks. This implies that Litecoin generates four blocks for every one block generated by Bitcoin.

Conclusion

The success or failure of Litecoin is dependent on a number of criterias. The rate at which it is adopted by the users is one criteria, and the more people purchase the cryptocurrency, for whichever purpose, its value will escalate. The cryptocurrency’s presence on leading exchanges becomes another lucrative advantage for it.

( Suggested Read - Future of Cryptocurrency )

Yet Litecoin, unlike Bitcoin, doesn't really attract as much attention from the public, nor does it have that level of public trust. With governments deliberating on the best approach for regulating cryptocurrencies, fresh regulations can result in large price shifts for each cryptocurrency, which include Litecoin.

Till date, Litecoin has managed to survive and prevail in a world where several cryptocurrencies have declined and become obsolete. Having established itself as a well-known and recognized blockchain powered payment network worldwide, it remains to be seen how Litecoin will be shaping itself up in the long term.

Latest Comments

wl83606205b1f8aa525da45d3

Jul 13, 2024

RECOVER YOUR STOLEN CRYPTO FROM FAKE CRYPTO INVESTMENT. Do you need help on how to recover lost or stolen crypto from a fake broker or investment platforms? I'm forever grateful to GEO COORDINATES RECOVERY HACKER for helping me recover my lost funds. This team can help you recover your coins without being in a hurry for you to pay for the services and the work smart and genuinely. I invested over $450,000 USD. I contacted several recovery companies online, it was all a tragic story. I came across a lot of Testimonies about GEO COORDINATES RECOVERY HACKER. I contacted them providing the necessary information and it took the experts about 48 hours to locate and help recover my stolen funds. I never believed I could recover all my funds back to my wallet. To anyone who has also lost their bitcoin, you can reach out to them through via Email: geovcoordinateshacker@protonme Email: geovcoordinateshacker@gmail.com WhatsApp +1 (512) 550 1646 Website; https://geovcoordinateshac.wixsite.com/geo-coordinates-hack

bettykerr233d975a24243f64421

Jul 14, 2024

A Life-Changing Experience: How Morrison's Recovery Helped Me Recover My Money from an Online Scammer

elsajones972f642cf1c34dc40c4

Jul 14, 2024

Many people routinely become victims of various frauds and disregard their options for assistance in doing so. Without a doubt, the best computer specialist to help you recover your money, monitor your alleged unfaithful partner's gadgets, upgrade your institution result and address any other cyber security concerns you may have is the Wizard James Recovery company. You should not attempt to ignore or move on from bitcoin fraud, even if you have previously been duped by a fictitious or an unregulated broker. This is something you shouldn't overlook because it might have a long-term effect on you. The good news is that getting assistance after falling for one of these scams is now much easier because of modern technology. It is true that those who fall prey to bitcoin fraud might be able to get their money back. The secret to navigating these frauds is knowing where to search for the most effective assistance. A similar situation happened to me when I was defrauded of $43,000 in Bitcoin. Luckily, I came across a hacker who could help me. You may be sure that any valuables that are misplaced or stolen will be deposited back into your wallet or bank account, whichever you prefer. Wizard James Recovery can be reached by email at (WIZARDJAMESRECOVERY AT USA DOT COM) if you have any questions.

jacksonlewis009721dd38f5af674712

Jul 18, 2024

The sophistication of the bitcoin scam is increasing, and a lot of individuals fall victim to it. It might be annoying, but don't feel bad about it. Reporting bitcoin scams is necessary, and if you have fallen victim to one, you need to obtain all assistance you need. An online foundation has been set up to assist clients in recovering their money from dishonest people who have stolen it. For reliable and efficient assistance in recovering your money if you have fallen victim to a bitcoin scam, get in touch with Wizard James Recovery Company. I became a victim of a bitcoin scam. I attempted to invest in bitcoin but ended up losing $329,00 USD. I owe Wizard James Recovery Company a huge debt of gratitude for helping me recover every last bit of Bitcoin that thieves had stolen. To find out more about their services, get in touch with them through WhatsApp +447418367204.

lilygreen8887bf95f8fdfb0a42de

Jul 21, 2024

Due to the fraudulent recovery agents I dealt with earlier, my recovery process has been a little rough. Nevertheless, thanks to the team's assistance during the consultation and one-on-one chats on WhatsApp at +447418367204, I was able to successfully retrieve my locked-up Bitcoin assets, valued at $422,610, in just 82 hours! Or rather, the staff put in a lot of effort on my behalf; all they needed from me was a few details about my investment with the fraudulent firm, and they took care of the rest. Before coming across WIZARD JAMES RECOVERY, I had encountered a few other recovery agents who seemed to be primarily concerned with their service fee, much like the fraud company was doing to me. I nearly lost hope that I would ever receive my money back, but today I've come full circle to return here and leave my own thankful review because I found out about the team through the numerous reviews on this website. With my newly acquired awareness and WIZARD JAMES RECOVERY on my side, I feel prepared to take on the world!... To help educate more people about cryptocurrencies and how to best navigate the digital financial landscape, I wish more awareness platforms and opportunities were created. This would undoubtedly help to reduce the rapidly spreading fraudulent activities that are currently taking place and prevent potential investors from falling for the scam. I'm glad I now know so I can pass it on to my kids and prevent them from making the same mistakes I did. Additionally, you can reach them at WizardJamesRecovery. Com, their official website, or by email at wizardjamesrecovery@ usa .com.

llee18716682515e6d1ad44d6

Jul 22, 2024

Hi there to all of you. If you have ever sent bitcoins to the incorrect wallet address or wish to retrieve lost cryptocurrency from internet con artists, I wholeheartedly recommend Mark Wizard Recovery service. Within a day of contacting online scammers, I was able to get my lost bitcoins. They are the most skilled professional hackers I have ever encountered, and I am really appreciative of their help in getting back what I lost. Here is their contact information in case you need their help. Email address… markwizard@solution4u.com Whatsapp… +1{716}{545}{4535} Website… https://www.markwizardrecoverysolution.com

xavierabadi88991bf829ff7b24071

Jul 22, 2024

EMAIL: WIZARDJAMESRECOVERY(@)USA.COM WEBPAGE: WIZARDJAMESRECOVERY . COM Information truly is power when it comes to investing in cryptocurrencies like Bitcoin. Invest some time in your education before venturing into the world of virtual currencies. Understand the basics of Bitcoin, be aware of the risks involved in using it, and be informed about any new developments in the industry. If you arm yourself with knowledge, you'll be better able to handle the dynamic crypto world.Wizard James Recovery's unmatched professionalism and competence set them apart from other recovery services. Their team of experts has the technical know-how to handle intricate blockchain transactions in addition to their in-depth understanding of the nuances of the cryptocurrency sector. Their track record speaks for itself and their dedication to aiding people like me is admirable. My misplaced Bitcoin would have stayed unreachable indefinitely without their help. I also want to express my sincere gratitude to Wizard James Recovery for their constant assistance and knowledge in helping me retrieve my lost Bitcoin. I can now move forward in the bitcoin industry with fresh confidence thanks to their assistance, since I have the information and tools I need to make informed decisions. Contact them with the information above. Warm regards, Xavier.

genevievemartin998db5bfed0c3854126

Jul 23, 2024

Finding trustworthy help in a time of internet fraud and financial misconduct may be likened to a laborious journey through a maze of lies. In the midst of the chaos, my journey with Wizard James Recovery served as a beacon, rekindling my hope for recovering what was rightfully mine. Let's go back to that uncertain, frustrating period. Like many others, I was caught up in the web of lies that con artists created, entangling my digital possessions in the payload of outrageous fees and broken promises. Suffocating was the anguish of being helpless against such injustice. But in the midst of all the uncertainty, Wizard James Recovery offered a ray of hope. I chose to reach out after hearing rumours about their skill from a colleague who had effectively enlisted their assistance during my time at Weebly. Their expertise and attention were evident from the first, providing crucial support during my worst moments. It's not easy to navigate the digital asset recovery space, but Wizard James Recovery has shown themselves to be true experts in the area. Leading a group of exceptionally talented professionals, they set out to make up for the wrongs these dishonest people had done to me. Throughout the process, communication was essential, and frequent updates gave much-needed transparency and assurance. Their steadfast dedication to my case was apparent at every stage, giving me the confidence and trust that had been sorely lacking in my earlier attempts. The scam company's website was shut down, among other challenges we encountered, but Wizard James Recovery never gave up. My missing money was retrieved in full within three days thanks to their methodical approach and unwavering efforts. Wizard James Recovery's knowledge and commitment shone through in my life once more. Their exceptional capacity to turn the tide against fraudsters and bring justice to individuals who have been harmed is evident. Wizard James Recovery was more than just a happy ending; it was proof of the value of honesty, skill, and sincere concern in a dishonest industry. For anyone who has been duped financially, they are more than just a source of assistance; they are rays of hope. I will now fully recommend Wizard James Recovery to anyone who needs help getting their forfeited assets back. I never regret giving them my case, and I will always be thankful of the positive energy they brought into my life at that difficult period. There is no challenge too big for you to take on, no injustice too big to correct, when Wizard James Recovery is on your side. Contact email at WIZARDJAMESRECOVERY{@}USA.COM Whats app: _+4_4_7_4_1_8_3_6_7_2_0_4.

alicemoles3245f47f677a474801

Jul 24, 2024

"Morrison's Recovery Services: The Go-To Solution for Online Scam Victims" ''I Lost $20,000 in an online investment scam. Morrison's Recovery Services not only recovered my funds but also helped me understand how to protect myself from future scams. Their dedication and knowledge made all the difference'' ''Dealing with identity theft was a nightmare until I found Morrison@cyber-wizard.com services. They guided me through the steps to restore my credit, reclaim my account, and prevent further damage. Their expertise and support were invaluable.''

malikaziz23555116f17e74f74587

Jul 25, 2024

I have always seen the opportunity to invest with trepidation. After selling our business two years ago, my spouse and I decided to use the money we saved to purchase some Bitcoin. I have been retired for two years. After seeing an ad on Instagram that seemed legitimate, I made the decision to contact them about investing in their platform. Together, my spouse and I invested $430,000.00 USD in cryptocurrency. We were even confident that we would treble our original investment. After a while, we discovered that everything was a hoax, in contrast to what we had been told. We were going through a really horrible period, but luckily we were able to contact an old friend who told us about Wizard James Recovery, and how they might assist us in receiving our money back. After we got in touch with Wizard James Recovery, the hacking firm was able to retrieve everything we had lost in a matter of days. We have found Wizard James Recovery to be of great assistance, and we strongly advise anyone wishing to retrieve their money back to get in touch with them using the following channels. WhatsApp= +447418367204 Email= wizardjamesrecovery at usa dot com Page= WizardJamesRecovery. com