What is Litecoin
And What Purpose Does It Serve?
Litecoin was launched in 2011 by former Google and Coinbase engineer, Charlie Lee. Looking to improve on Bitcoin’s functionality, the founder set out to create a new cryptocurrency that offered faster transaction speeds and an increased total supply. While Bitcoin has a maximum total supply of 21,000,000 BTC, Litecoin has a maximum supply 84,000,000 LTC. While the crypto was designed to improve some of Bitcoin’s practicalities, it was never designed to replace it. As one of the earlier altcoins, Litecoin is affectionately known as Digital Silver to Bitcoin’s Digital Gold.
Litecoin at a glance
Litecoin is a decentralized digital currency that operates off of blockchain technology. The cryptocurrency offers a transparent and immutable monetary system that enables peer to peer transactions, without the need for a government or central authority.
When considering what is Litecoin known for, one of the key aspects to this digital currency is that it offers 4x faster transaction speeds than that of its predecessor, Bitcoin. By increasing the block size on the blockchain, the team was able to speed up the time it takes for transactions to be verified. To illustrate this, in 2017 0.00000001 LTC was transferred from Zürich to San Francisco in under one second.
Instead of Bitcoin’s SHA-256 hashing algorithm, Litecoin built their network to function off of a different hashing algorithm called Scrypt. This offers a lower hash rate and is more memory intensive than the original cryptocurrency. This allows smaller miners to operate on the network, as opposed to only large mining pools.
How are Litecoin transactions executed?
Much like its predecessor Bitcoin, Litecoin uses the same concept of verifying transactions. When sending LTC from one wallet to another, the transaction is entered into a mining pool where it will wait until the next block is ready to be created. Once picked up by a miner, the transaction will be verified by the miner, they will be paid the transaction fee, and the miner will confirm that the said funds are available. Once this is confirmed the transaction is verified and the movement of funds will occur as requested. As Litecoin utilises a shortened block generation time, transactions can take place more quickly.
What is Litecoin worth?
What purpose does it serve?
Value of Litecoin
In the decade that Litecoin has been around, the altcoin has seen a rise in value of approximately 960%. The value of LTC can be established by viewing a reputable exchange and checking what the value is at that given moment, as with any market related asset. Litecoin is a prominent feature in the top 10 cryptocurrencies based on overall market capitalization, and is a popular cryptocurrency based on its quick and inexpensive transactions.
Due to Litecoin’s low cost transactions fees and fast transaction speeds, Litecoin offers an excellent means to send money internationally. Far surpassing the tiresome and costly process of transferring fiat funds across borders, Litecoin allows anyone anywhere in the world to instantly send funds no matter how big or small.
Low Transaction Fees
Another feature of the Litecoin network is the very small transaction fees charged when transacting the cryptocurrency. Litecoin offers users a flat rate, as opposed to a percentage of the transaction as many other cryptocurrencies do. The Litecoin transaction fee is set at 1/1,000 LTC, and this fee is paid directly to the miner verifying the transaction.
How does Litecoin Mining Work?
An integral part in understanding what is Litecoin is understanding how the Litecoin mining process works. The altcoin holds a few similarities to Bitcoin, however it has implemented several key differences. Like Bitcoin, the cryptocurrency uses a decentralized network of miners to verify transactions and create new coins. However, the newer cryptocurrency uses a different mining algorithm called Scrypt which utilizes a more memory intensive process and offers a more even playing field for miners in terms of what equipment they can use. What Will Litecoin Be Worth In The Future? While no one can say with certainty what anything might be worth in the future, Litecoin certainly has a bright future ahead for it. Unlike Bitcoin, the network’s founder is an active member of the cryptocurrency network and community as a whole, and is able to advise, implement and innovate with the brilliant team of developers that work on the project. Some key features that the cryptocurrency is working on is incorporating confidential transactions, implementing Schnorr signatures and making multi-sig transactions more efficient with Merkelized Abstract Syntax Trees (MAST).
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