What Is Litecoin
Over the past several years, public interest in cryptocurrencies has increased dramatically. The main focus of this interest has been Bitcoin , which, following the release of its first public client in , has become the dominant name in cryptocurrency.
Since then, however, many other cryptocurrencies have entered the scene , with at least 20 tracked by major financial news sites each day. Among these, one name which has garnered increasing interest is Litecoin.
On the surface, Bitcoin and Litecoin have a lot in common. At the most basic level, they are both cryptocurrencies. Whereas state currencies such as the U. Yet Bitcoin and Litecoin also differ in important respects. Whether Bitcoin's market cap strikes you as either high or low depends largely on a historical perspective. One of the main differences between Bitcoin and Litecoin concerns the total number of coins that each cryptocurrency can produce. This is where Litecoin distinguishes itself.
The Bitcoin network can never exceed 21 million coins, whereas Litecoin can accommodate up to 84 million coins. In theory, this sounds like a significant advantage in favor of Litecoin, but its real-world effects may be negligible.
This is because both Bitcoin and Litecoin are divisible into nearly infinitesimal amounts. In fact, the minimum quantity of transferable Bitcoin is one hundred millionth of a Bitcoin 0.
In November , IBM executive Richard Brown raised the prospect that some users may prefer transacting in whole units rather than in fractions of a unit, a potential advantage for Litecoin. Yet even assuming this is true, the problem may be solved through simple software changes introduced in the digital wallets through which Bitcoin transactions are made.
This can help circumvent the psychological aversion to dealing in fractions. Although technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required for those transactions to be confirmed by other network participants.
According to data from Blockchain. The equivalent figure for Litecoin is roughly 2. In principle, this difference in confirmation time could make Litecoin more attractive for merchants. For example, a merchant selling a product in exchange for Bitcoin would need to wait nearly four times as long to confirm payment as if that same product were sold in exchange for Litecoin. On the other hand, merchants can always opt to accept transactions without waiting for any confirmation at all.
The security of such zero-confirmation transactions is the subject of some debate. By far the most fundamental technical difference between Bitcoin and Litecoin are the different cryptographic algorithms that they employ. Bitcoin makes use of the longstanding SHA algorithm, whereas Litecoin makes use of a comparatively new algorithm known as Scrypt. In both Bitcoin and Litecoin, the process of confirming transactions requires substantial computing power.
In exchange for doing so, these miners are rewarded by earning units of the currency which they have mined. SHA is generally considered to be a more complex algorithm than Scrypt, while at the same time allowing a greater degree of parallel processing. Consequently, Bitcoin miners in recent years have utilized increasingly sophisticated methods for mining Bitcoins as efficiently as possible.
The practical consequence of this has been that Bitcoin mining has become increasingly out-of-reach for the everyday user. This has led many commentators to view Scrypt-based cryptocurrencies such as Litecoin as being more accessible for users who also wish to participate in the network as miners. It remains to be seen whether the cryptocurrencies with which we have become familiar will retain their stature in the months and years to come.
Your Money. Personal Finance. Your Practice. Popular Courses. Login Newsletters. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Litecoin: An Overview Over the past several years, public interest in cryptocurrencies has increased dramatically. Key Takeaways Bitcoin has been the dominant name in cryptocurrencies since , but Litecoin and others have joined the fray.
Litecoin can produce a greater number of coins than Bitcoin and its transaction speed is faster, but these factors are largely psychological boons for the investor and don't impact the value or usability of the currency. Bitcoin and Litecoin use fundamentally different cryptographic algorithms: Bitcoin uses the longstanding SHA algorithm, and Litecoin uses a newer algorithm called Scrypt.
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Related Articles. Bitcoin Bitcoin vs. Ethereum: What's the Difference? Bitcoin How to Buy Bitcoin. Cryptocurrency The Future Of Cryptocurrency. Litecoin Vs. Dogecoin: Comparing Virtual Currencies. Partner Links. Related Terms Bitcoin Mining, Explained Breaking down everything you need to know about Bitcoin mining, from blockchain and block rewards to Proof-of-Work and mining pools. Bitcoin Definition Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments.
It follows the ideas set out in a whitepaper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Litecoin Launched in the year , Litecoin is an alternative cryptocurrency based on the model of Bitcoin. Litecoin Mining Litecoin mining is the processing of a block of transactions into the Litecoin blockchain. Mining Mining validates transactions on the cryptocurrency network and is used to add newly found coins to circulation.
2. Lowering the perceived price point
View more search results. Interested in litecoin trading with IG? Find out more. Open a contract in which you agree to exchange the difference in price of LTC from when you open your position to when you close it. Litecoin is different to bitcoin in a few important ways.
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Hence, it becomes an obvious choice to exchange your Litecoins for Bitcoins if you are doing it multiple times in a month. You can learn about investing in Dash. Hi Would you be good enough to send me simple instructions to withdraw! However, for this to be done, you need to thoroughly understand the process of conversion. Bitcoin Basics. As soon as that happens, we will transfer the Bitcoins to your wallet. A stock is equity in a company, and a bond is debt owed to a company. How Litecoin Is Different Litecoin is different than other currencies is a couple key ways. First, unlike Bitcoin and Ethereum, Litecoin uses a software algorthym Scrypt to mine units. Cryptocurrency The Future Of Cryptocurrency. Get started. Related Articles. Cryptocurrency Bitcoin. Well, instant may be a big word. Are you sure you want to place sell order?
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