Sunday, 23 June 2024

Litecoin (LTC) – An Early Altcoin with Faster Payments

21 Jun 2024
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Litecoin (LTC) - An early altcoin that serves as a faster and cheaper version of

Litecoin (LTC) is an alternative cryptocurrency. It was created in October 2011 by Charles Lee, a former Google engineer.1 Litecoin was adapted from Bitcoin’s code but with several modifications.

Like Bitcoin, Litecoin is based on an open payment network. It is not controlled by any central authority. Litecoin has been called “the silver to Bitcoin’s gold.”1

It was one of the first altcoins derived from Bitcoin’s code. Litecoin was initially a strong Bitcoin competitor.1 However, as more cryptocurrencies emerged, Litecoin’s popularity declined.

Key Takeaways

  • Litecoin (LTC) was founded in 2011 by Charlie Lee, two years after Bitcoin’s creation.1
  • Litecoin processes transactions faster than Bitcoin, with 2.5 minutes per block vs. Bitcoin’s 10 minutes.1
  • Litecoin has a total coin cap of 84 million, while Bitcoin’s cap is 21 million.1
  • Litecoin can handle up to 50 transactions per second, compared to Bitcoin’s 7 transactions.1
  • Litecoin’s block reward halves every 840,000 blocks, unlike Bitcoin’s 240,000 blocks.1

What Is Litecoin (LTC)?

Key Takeaways

Litecoin is an early cryptocurrency. It was developed by Charlie Lee, a former Google engineer, in 2011. Litecoin’s structure resembles Bitcoin’s. Thus, it has served as a testing ground for improvements later applied to Bitcoin.2 Litecoin differs from Bitcoin in aspects like its faster block generation rate and use of the Scrypt hashing algorithm.

Litecoin’s Origins

Litecoin was created by Charlie Lee, an MIT graduate and ex-Google engineer. In 2011, Lee became interested in Bitcoin.1 As Lee stated, “In October 2011, I experimented with Bitcoin’s codebase. It started as a fun side project to create a fork of Bitcoin.”

A Reaction to Bitcoin

Litecoin has always reacted to Bitcoin. When announcing Litecoin on a Bitcoin forum, creator Charlie Lee called it “a lite Bitcoin version.”1 While sharing many Bitcoin features, Lee adapted and improved certain aspects he felt could be better.

The History of Litecoin (LTC)

Litecoin was developed by Charlie Lee, an MIT graduate and former Google engineer.1 Lee became interested in Bitcoin in 2011.

He stated, “In October 2011, I played with Bitcoin’s codebase. It was a fun side project to create a fork of Bitcoin.”1

Segregated Witness (SegWit)

In 2017, Litecoin adopted SegWit, a protocol update. Due to Litecoin’s Bitcoin similarity, it tested SegWit’s viability.

The test succeeded, and Bitcoin later adopted SegWit. Some opponents favoring larger Bitcoin blocks created Bitcoin Cash through a hard fork.3

Lightning Network Integration

The Lightning Network scales Bitcoin by using micropayment channels. Litecoin’s Lightning integration proved such innovations were possible on Bitcoin.

Lee argued when Bitcoin fees are high, “it’s easy to use Litecoin to onboard onto the Lightning Network.” Litecoin integrated Lightning in 2018.3

MimbleWimble Privacy Protocol

The Litecoin website states MimbleWimble, a privacy protocol obscuring transaction amounts, was completed in May 2022.3

Mining Litecoin (LTC)

Litecoin is a minable cryptocurrency. If you choose to mine Litecoin, it’s advisable to join a mining pool. Even with an ASIC for Scrypt, mining pools enhance your chances of rewards, though shared with members.4

Joining Mining Pools

Litecoin mining utilizes application-specific integrated circuits (ASICs) or personal computers (limited capacity). In 2024, purchasing Scrypt-compatible ASIC miners and joining pools more efficient at hashing is recommended.5

ASIC Mining Hardware

Litecoin mining validates transactions through blocks on its blockchain. The first to guess the hash receives 12.5 Litecoins reward. ASIC miners handle computational demands for Litecoin mining.5

Litecoin mining is relatively easier than Bitcoin due to the Scrypt algorithm. However, profitability depends on electricity costs, mining hardware, and Litecoin’s market price.5

Cloud mining enables mining without costly hardware, utilizing third-party cloud providers. Yet, mining expenses include equipment, electricity, and maintenance costs. Mining time per Litecoin varies based on hardware, network difficulty, and mining power.5

Stay informed about industry developments, market trends, and community support to assess Litecoin’s future potential as a minable cryptocurrency.5

Litecoin (LTC) – An early altcoin that serves as a faster and cheaper version of Bitcoin

Litecoin was created to produce blocks four times faster than Bitcoin.216 This altcoin generates a new block every 2.5 minutes. Bitcoin, in contrast, creates a new block every 10 minutes.

The main appeal of Litecoin is its speed and ease of acquisition.216

Faster Transactions

Litecoin facilitates quicker transaction confirmations compared to Bitcoin.216 This cryptocurrency also offers lower fees than Bitcoin.

Lower Fees

While Bitcoin utilizes the SHA-256 PoW hashing algorithm, Litecoin employs Scrypt.6 Scrypt is a password-based key derivation function designed for better security.

Scrypt makes large-scale, custom-built hardware attacks on Litecoin more difficult. This less resource-intensive hashing algorithm was chosen by Litecoin’s creator, Charles Lee.

Litecoin (LTC) vs. Bitcoin (BTC)

Litecoin and Bitcoin share similarities as2 cryptocurrency pioneers. However, there are key differences between them. Litecoin produces four times more blocks than Bitcoin. It also allows a higher coin limit.

Litecoin’s main appeal is speed and ease of acquisition. It generates a new block every 2.5 minutes, while Bitcoin takes 10 minutes.

Coin Supply and Block Generation

Bitcoin has a smaller coin supply with 21 million maximum coins. Litecoin’s limit is 84 million coins. Litecoin’s next halving is projected for July 30, 2027. The block reward will drop to 3.125 LTC.

Bitcoin’s last halving occurred on April 19, 2024. The block reward reduced to 3.125 BTC.2

Hashing Algorithms

Bitcoin uses the SHA-256 PoW hashing algorithm. Litecoin uses the less resource-intensive Scrypt algorithm. Scrypt is designed to be more secure against hardware attacks.

Halving Schedules

Litecoin’s halving dates differ from Bitcoin’s. It was released two years later. The rewards halve at different intervals as Litecoin produces blocks faster.

Litecoin’s halving schedule: Aug. 25, 2015 (50 to 25 LTCs), Aug. 5, 2019 (25 to 12.5 LTCs), Aug. 2, 2023 (12.5 to 6.25 LTCs), and mid-2027 (expected: 6.25 to 3.125 LTCs).2

Buying and Selling Litecoin (LTC)

Most cryptocurrencies can be purchased on exchanges.7 Several U.S. exchanges facilitate Litecoin transactions. Examples are Coinbase, eToro, and Kraken.

Other Litecoin exchanges in the U.S. include Binance.US, Robinhood, and Gemini.

Cryptocurrency Exchanges

To set up an account, you’ll undergo “Know Your Customer” registration. This involves providing identification, tax details, and other required information.7 Once approved, you can deposit and trade Litecoin.

KYC Requirements

Selling Litecoin differs on centralized and decentralized exchanges. On centralized exchanges like Kraken, you send LTC to their address.7 The exchange then facilitates the sale.

Decentralized exchanges may or may not require KYC procedures.

Centralized vs. Decentralized Exchanges

BTC Direct allows users to buy Litecoins using bank transfers or cards.8 Since June 2018, BTC Direct employees can receive part salary in Bitcoin.

Litecoin exchanges

The Future of Litecoin (LTC)

Recent Developments

As of May 2024, Litecoin’s website and GitHub lacked major projects.2 However, the Litecoin Foundation’s GitHub showed activity for LiteWallet (Android and iOS) and other non-core blockchain projects. In 2024, Litecoin activated Runes, similar to Bitcoin’s non-fungible tokens.

Continued Interest and Adoption

In 2024, Litecoin had a market price over $80, $310 million 24-hour trading volume, and $6 billion market cap.9 Between January and May 2024, the network processed a record 34 million transactions – nearly four times the previous year’s amount for that period.2

These metrics suggest continued interest in Litecoin’s future.

Metric Litecoin (LTC) Bitcoin (BTC)
Network Hashrate (as of May 2, 2024) 1.0 peta-hash per second2 581.83 exa-hashes per second2
24-Hour Transaction Volume (as of May 2, 2024) $350 million2 $39 billion2
Market Capitalization $6 billion9 Much higher than Litecoin2
Total Coin Supply Limit 84 million coins2 21 million coins2
Next Halving Date July 30, 20272 April 19, 20242

Conclusion

Litecoin, an early altcoin, facilitates quicker transactions with lower fees.10 It’s a faster, cheaper Bitcoin version.11 While popularity has waned, Litecoin continues developing with sustained interest.

Ranking ninth with over $11 billion market cap,10 Litecoin offers faster block generation, lower fees, and larger supply.10 Its Scrypt mining algorithm and Lightning integration contribute relevance.11

Newer cryptocurrencies emerge with enhanced scalability and transaction speeds.11 However, Litecoin’s brand recognition, user base, and Litecoin Foundation’s efforts suggest maintained relevance.11 Consult knowledgeable advisors for informed Litecoin investment decisions.11

Tesla Coin Price Tracker – Real-Time Updates

FAQ

What is Litecoin (LTC)?

Litecoin (LTC) is an alternative cryptocurrency. It was created in October 2011. It was adapted from Bitcoin’s code. However, it had several modifications.

How was Litecoin developed?

Litecoin was developed by Charlie Lee. He was an MIT graduate. He was also a former Google engineer. Lee became interested in Bitcoin in 2011.According to Lee, “In October 2011, I played with Bitcoin’s codebase. I tried to create a fork of Bitcoin. It was mainly for fun.”

How is Litecoin different from Bitcoin?

Litecoin was a “lite Bitcoin version”. It had a faster block generation rate. It used the Scrypt hashing algorithm. It was also used to test Bitcoin improvements.

How does Litecoin compare to Bitcoin in terms of transactions and fees?

Litecoin facilitates faster transaction confirmations. It also has lower fees compared to Bitcoin.

How can Litecoin be mined?

ASICs or personal computers mine Litecoin. Joining a mining pool increases rewards. However, rewards are shared with members.

Where can I buy and sell Litecoin?

Litecoin trades on cryptocurrency exchanges. U.S. exchanges include Coinbase, eToro, and Kraken. KYC registration is required to open accounts.

What is the future outlook for Litecoin?

In May 2024, no major Litecoin projects were listed. However, the Foundation worked on LiteWallet and other projects. Litecoin had a market price over , 0 million trading volume, and billion market cap, showing future interest.

Source Links

  1. https://www.investopedia.com/articles/investing/040515/what-litecoin-and-how-does-it-work.asp
  2. https://www.investopedia.com/articles/investing/042015/bitcoin-vs-litecoin-whats-difference.asp
  3. https://builtin.com/blockchain/what-is-litecoin
  4. https://www.binance.com/en/support/faq/how-to-mine-litecoin-ltc-on-binance-1fa09667b94b4c9c8ff1c40373840918
  5. https://coinswitch.co/switch/crypto/what-is-litecoin-mining/
  6. https://www.forbes.com/advisor/investing/cryptocurrency/litecoin/
  7. https://www.sciencedirect.com/topics/computer-science/litecoin
  8. https://btcdirect.eu/en-eu/about-litecoin
  9. https://www.litefinance.org/blog/analysts-opinions/litecoin-price-prediction-forecast/
  10. https://phemex.com/academy/what-is-litecoin-ltc
  11. https://www.kvarnx.com/content/what-is-litecoin