Imagine if there was a cryptocurrency like Bitcoin but faster, cheaper, and could handle a heavier load of transactions per second. Hundreds of cryptocurrencies have attempted to function like this, but only one stands at the top. ****THIS IS NOT FINANCIAL ADVISE AS IT’S PROVIDED FOR EDUCATIONAL AND ENTERTAINMENT PURPOSES ONLY*****
The cryptocurrency that we’re going to be talking about today is Litecoin!
Everything You Need To Know About Litecoin
Here’s everything you need to know about Litecoin, how it works.
What is Litecoin?
Litecoin or LTC is a cryptocurrency that functions similarly to Bitcoin, except instead of having a long-term store of value—it’s supposed to be sound money. Think of sound money as your local currency, something that can be used daily and long-term store of value as gold or diamond that you keep in a vault as it slowly increases in value. Both coins have their perks, but the convenience that comes with Litecoin gives it an advantage over Bitcoin.
This revolutionary coin was founded by Charlie Lee, an ex software engineer from Google who played poker as a hobby. Charlie made Litecoin serve as a faster, cheaper, and more decentralized version of Bitcoin. You can think of Litecoin as a “light” version of Bitcoin, hence the name.
What Makes Litecoin Unique?
Skipping most of the general technical stuff, what truly sets Litecoin apart from the rest?
Speeding Through The Competition
If you don’t already know, Bitcoin has a block time of 10minutes. This means that transactions are collected, grouped, and placed into a block every 10 minutes. This means that the subsequent block has to wait another ten minutes before it can be added to the blockchain and start making a transaction.
In contrast, Litecoin has a block time of 2.5 minutes, four times faster than Bitcoin’s block time. This difference in speed makes Litecoin a lot more efficient and convenient if you want to maximize your transactions per day.
Quantity AND Quality
Block time doesn’t matter if the network’s transaction speed is slow. However, Litecoin speed blitzes Bitcoin in this area again!
Bitcoin can only process five transactions per second, having a transaction cost between $2-$10. However, Litecoin has a speed of 54 transactions per second and an even lower transaction cost at as little as $0.1-$0.2.
The Power of Transparency
Just like Bitcoin, Litecoin is open source. This means that anyone can take a look at the network’s code and request improvements or suggestions that can benefit the network. If your suggestion is good and more than half of the miners agree to the change, your code suggestion will be accepted!
The nature of open source networks makes it so that the developers and miners can benefit through the transparency, making the network more efficient in the process as well!
Lightning Fast Transactions
Litecoin uses a layer two solution that allows users to make quick, almost free, and easy transactions within seconds. This solution is called the lightning network, and Litecoin is the first network to adopt and use it!
Should You Mine Litecoin
Although this is a lot easier said than done because of the introduction of ASIC mining, investing time and money into Litecoin is a good choice. Especially since the popularity of cryptocurrencies has been on the rise since the pandemic, the value of most cryptos is going to increase tremendously.
Litecoin and Bitcoin are essentially different sides of the same coin, the only difference being their practical use. Do you have any questions about Litecoin? Drop them in the comments below!
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