In the year 2007 Charles Lee, a computer scientist introduced the Crypto-world with his unique creation called the Litecoin. According to data obtained, In May 2017, Litecoin became the first of the top five cryptocurrencies to adopt Segregated Witness.
Later in the month of May, the first Lightning Network transaction was completed through Litecoin with a transferring 0.00000001 LTC from Zürich to San Francisco in less than one second. This variant of crypto gained much appreciation since its inception and today stands as one of the primary variants of digital currency trading all over the globe.
Since Litecoin first saw the daylight in the crypto market, it showed rapid growth and thus it was found that during the month of November 2013, its overall aggregate value increased remarkably performing a 100% jump within 24 hours. Litecoin rightly earned its spot as one of the preferred altcoins among all the others helping the investors and traders around the world thus reaching a market capitalization of a $1 billion in November 2013.
What is it all about?
Litecoin is a decentralized digital currency like that of the “Bitcoin”. It uses encryption techniques the same as that of the Bitcoin in order to create and transfer funds and complete a transaction. The Litecoin has a larger amount of coins that can be created having a faster transaction rate to that of the Bitcoin. Litecoin is one of the favorite variants of cryptocurrencies has got a very high value in the market in terms of preferences and has much more longevity than that of the Bitcoin.
Now looking at this rise in the popularity of Litecoin is simply in response to the demand for alternative currency options separating themselves from centralized banks and governments. On the other hand traders and investors have simply able to realize the massive potential that this variant of cryptocurrency can offer to them and serve them well with their regular transaction.
How does it work?
Litecoins are created by the elaborate procedure of mining which consists of processing transaction list of Litecoin. The supply of Litecoin is fixed which is pretty much unlikely with regards to normal currency. It has already been estimated that only 84 million Litecoins can be in circulation and not a single one extra. In every 2.5 minutes, the Litecoin network generates block also known as a ledger entry of the most current Litecoin transactions. This process has a global impact and hereby the Litecoin derives its value.
Few differences between Bitcoin and Litecoin
Since the inception of Litecoin, it has gained much popularity in no time. This rising demand thus compelled the trader to start comparing it with the most successful of the crypto-variant of all time known as Bitcoin. Now accordingly different in opinion is very evident and thus we try to figure out the major differences between the two in short.
- In the year 2009 Bitcoin was created by Mr. Satoshi Nakamoto, the Litecoin came into existence in the year 2011 holding the capable hands of Mr. Charlie Lee.
- Bitcoin has an average transaction time of around 10 minutes. Whereas, Litecoin only takes around 2.5 for each transaction.
- Block reward per block for Bitcoin is 12.5, whereas in the case of Litecoin it is 25.
- Bitcoin has a supply limit of 21 million only which cannot be altered. In the case of Litecoin, this number goes up to 84 million.
- Bitcoin has a market cap value of 153.9 billion which is pretty much high in regards to Litecoin which has only 9.7 billion when compared.
- The single unit value of Bitcoin in USD is 9088.16. Whereas one unit value of Litecoin is 173.55
- There is a unique difference between the mining process of Bitcoin and to that of the Litecoin in general.
- Often Bitcoin is considered as gold whereas Litecoin is termed as Silver.
Pros and Cons of Litecoin
- It has a massive capability of getting flexible with the implementation.
- It is easy to use and considerably faster than Bitcoin.
- Purchasing of Litecoin is cheaper in comparison to Bitcoin and other variants and thus mostly preferred by traders around the globe.
- Less volatile during a market crash if any.
- Total availability of Litecoin is 84 million which is quite massive.
- Pretty much all the hardware wallets support Litecoin.
- A market can be somewhat damaged due to Bitcoin’s scaling problem.
- Lacks market cap value to that of Bitcoin.
- In comparison to Bitcoin has less creditability in the crypto market.
- Have less priority in traders than that of Bitcoin.
Future of Litecoin
Litecoin promises to be one of the most trusted altcoins in the coming days and shows signs of a long-term steady growth overall. This is one of the main reasons why many of the investors are largely keeping their faith with this variant of cryptocurrency.
There is an ample amount of scope for the Litecoin to grow in terms of value in the coming days as predicted by the trade pundits. However, that does not simply mean that there is no scope for the other altcoins to grow. With the current trade trend, it is very much evident that more and more traders are showing a keen interest in purchasing Litecoin than the rest of the variants obtained.
We thus come to the very conclusion that though Litecoin has few major drawbacks when in comparison to Bitcoin, it really offers much when it comes to choosing altcoins. As stated above the future of Litecoin is very bright and according to the trading scenario, more and more traders are getting encouraged to use Litecoin as their mode of transaction.
Keeping this in mind the use of Litecoin can be considered as one of the best altcoins for transaction and trader will be more beneficial in the long run both in terms of its transaction and price value.