Litecoin is known as the little brother of Bitcoin and it is a peer-to-peer (P2P) cryptocurrency that has gained widespread adoption since the creation in 2011. Advantages of Litecoin in comparison to Bitcoin will be discussed here.
It is a form of digital money that uses a blockchain to maintain a public ledger of all transactions. It is used to transfer funds between individuals or businesses which there is no need for an intermediary such as a bank.
Advantages of Litecoin:
- Number of coins
- Market cap
Litecoin is based on the same open-source code behind Bitcoin, but it has some advantages. It was created by an engineer named Charlie Lee to be the silver to Bitcoin’s gold, and one of the main differences between the two cryptocurrencies is the transaction speeds.
As it generates blocks about four times faster than Bitcoin, it can confirm the legitimacy of transactions faster and process the more in the same time frame.
Number of Coins
Some cryptocurrencies hold intrinsic value as they have limited supplies. Once a certain number of bitcoins (BTC) or litecoins (LTC) are created no more coins can be created.
Bitcoin has a limit of 21 million coins, but Litecoin will max out at 84 million. So it can be considered as one of the advantages for Litecoin.
Although the market cap is lower than Bitcoin, Litecoin still ranks among the top five cryptocurrencies. These rankings fluctuate if the price and number of coins in circulation change.
Another difference between Bitcoin and Litecoin is the hashing algorithm that each uses to solve a block, as well as how many coins are distributed each time a solution is found. When a transaction is made, it is then grouped with others that have been recently submitted within a block.
Miners use the cycles of their GPUs (graphics processing units) and/or CPUs (central processing units) to solve complex mathematical problems, passing the data within a block through the aforementioned algorithm until they find a solution. Right then, all transactions within the respective block are fully verified and stamped as legitimate.
Miners also reap the fruits of their labor each time a block gets solved, as a predefined number of coins is distributed among those who helped out—with the more powerful hashers getting the lion’s share. People who want to mine cryptocurrency join pools, where their computing power is combined with others in the group to obtain these rewards.
Litecoin and Bitcoin use contrasting algorithms for hashing. Bitcoin uses SHA-256 (Secure Hash Algorithm 2), which is considered relatively more complex; Litecoin uses a memory-intensive algorithm referred to as scrypt.
Different proof-of-work algorithms is different hardware, so it is essential to be sure that the mining rig meets the proper specifications for producing coins.
How to Buy Litecoin
If you’d like to buy some of this coin but don’t want to mine it, purchase it with another cryptocurrency on an exchange site. In some of these exchanges, as well as other services such as Coinbase, you can buy Litecoin with fiat currency.
Like bitcoins and lots of other cryptocurrencies, litecoins typically are stored in a digital wallet. There are different kinds of wallets; some are software-based and live on the computer or mobile device, and some are physical hardware wallets.
Another secure yet outdated and complex method to store litecoins is a paper wallet, which you have to generate and print a private key on a computer not connected to the web.
Each wallet has private keys that are required to receive and send coins to and from your Litecoin address. Because these keys are stored offline in a hardware wallet, they are more secure than wallets connected to the internet.
These application-centric wallets are in the form of desktop or mobile software and are available for almost all popular operating systems and devices. In addition to third-party applications such as Electrum, desktop users also have the option to install Litecoin Core, which is the full-fledged client created and updated by the Litecoin development team. Litecoin Core downloads the entire blockchain directly from the p2p network, avoiding any middleman in the process.
Litecoin Blockchain Explorers
Like other public cryptocurrencies, all Litecoin transactions within its blockchain are public, viewable and searchable. The easiest way to peruse the records or search for an individual block, transaction, or even address balance is through a Litecoin block explorer. There are many to select from internet.