Litecoin is a decentralized, peer-to-peer, open source cryptocurrency software project that runs under the MIT/X11 license. It was created by an ex-staff member of Google, Charlie Lee, to deal with transaction times. Litecoin was created in October 2011 as a lighter, faster, and improved version of Bitcoin. Bitcoin and Litecoin are a part of the blockchain technology, which is a part of cryptocurrency. Comparing Litecoin to Bitcoin is kind of like China to Japan or comparing Silver and Gold. In 2014, Litecoin had the second largest share in the cryptocurrency market with $0.4 billion. Bitcoin had the largest share with $4 billion.
There are a few basic differences between Litecoin and Bitcoin:
- Litecoin is a faster means of a transaction when looked at in terms of confirmation. It takes about 2 ½ minutes for a Litecoin transaction to be processed. This is quicker when compared to Bitcoin, which typically takes about 10 minutes.
- Litecoin supply is four times that of Bitcoin.
- Litecoin uses the memory-intensive scrypt algorithm, which is different from Bitcoin’s processor-intensive sha256 algorithm. This enables it to perform large-scale custom hardware attacks because of its large memory.
- In 2017, Litecoin upgraded to Segregated Witness (SEGWIT). This enables Litecoin transactions to be quicker, less expensive, and secure. SEGWIT is where specific signature data is made small when removed from Bitcoin. This allows more room for data to be added to the block. This is termed a soft fork.
- It is a more decentralized cryptocurrency compared to Bitcoin. This is because of its faster mining process.
FEATURES OF LITECOIN.
- You can use Litecoin to send money to anybody in the world.
- Transaction fees are quite lower than other forms of money transfer. Using Litecoin eliminates both bank charges and government taxes on it.
- Litecoin uses secure software, such as software that can be compared to sending emails.
- Inflation does not affect Litecoin payments.
- Litecoin is the future of commerce.
- Can be used to purchase services, such as website development.
- It is a safe and easy way for merchants to acquire money.
- Litecoin is faster and quicker due to its use of SEGWIT, which also gives it that extra memory necessary to perform transactions.
- It has a large community like Ethereum. It has developers and users.
Just like with any form of blockchain technology, there are drawbacks. Some of these setbacks affect cryptocurrency as a whole. These include:
- Litecoin transactions are not easily traced. When a transaction is made, it is virtually impossible to follow how the transaction goes.
- They are easily susceptible to government clampdown. All cryptocurrency transactions are devoid of government taxes and regulations. Since there is no central server that necessarily oversees these transactions, it makes it vulnerable to government clampdowns.
- Litecoin carries a certain form of risk. The uncertainty of government clampdown is one, but despite its popularity, it is still not accepted worldwide as a form of commerce. Until it is fully accepted, there are still remaining dangers when trading with them.
There are pros and cons to cryptocurrencies like Litecoin. It is an area that continues to grow as people look for ways to store their money in these currencies to prevent themselves from losing money in countries where the local currency isn’t strong. It is also a look into the future, as digital currency could become the way of the future. Though there are many risks, such as government intervention, price fluctuation, and lack of acceptance everywhere. Like with anything else, if you are thinking about buying Litecoin, do your research first. Try reading “Litecoin: The Ultimate Beginner’s Guide for Understanding Litecoin” by Elliott Branson. If you’re going to buy Litecoin, try using a trusted wallet like Coinbase.