The essence of the Litecoin project, the main differences from Bitcoin. Where to buy, store and how to mine Litecoin. Prospects for cryptocurrency quotes.
The Litecoin cryptocurrency is called silver, comparing it with Bitcoin, which rightfully owns gold. Initially, the coin was created as a backup version of the military-technical cooperation, which for a long time had no analogs. Subsequently, the payment system grew into an independent project that created Bitcoin’s real competition. True, Lightcoin could not hold on to silver, giving way to BCH, Ripple, and the decentralized networks of ETN and EOS. Despite the fact that the startup is gradually losing ground, it remains an attractive option for diversifying the investment portfolio. What is Litecoin, what are the features of a coin, how to mine a cryptocurrency, where to buy it and what are the forecasts for its rate, read on in the review?
Cryptocurrency Litecoin – payment system to replace the MTC
In 2018, relative stability began on the cryptocurrency market and there were some clear trends. The ICO boom has not yet passed and continues to grow, but a pattern has begun to be traced: developers are increasingly moving away from unconventional startup ideas, creating analogs (forks, clones) of the most popular cryptocurrencies. First of all, we are talking about payment systems and decentralized networks of the type of BTC and ETN. It is logical that with the correction of the market, almost all of them will cease to exist, giving way to the oldest, but no less popular cryptocurrencies. Although these oldest cryptocurrencies have been criticized several times, they are confidently in the TOP rating by the CoinMarketCap capitalization level and are unlikely to be knocked out of it.
One of these coins is Litecoin cryptocurrency, which is one of the most flexible, progressive and promising. This cryptocurrency is circulated on almost all exchanges in the world, except for “pocket” ones (“sharpened” for a specific project). Its code is constantly being improved, and it is possible that someday this payment system will be able to catch up with the MTC in terms of capitalization. What is Litecoin, what are its differences from Bitcoin, where to buy and store, how to mine and what are the prospects for cryptocurrency, read the review?
Litecoin cryptocurrency review: essence, mining, prospects
The founder of the project was Charlie Lee, who today is one of the main developers. Initially, cryptocurrency was conceived as an analog of Bitcoin, a kind of reserve currency. In 2011, its main code was developed, repeating the MTC code, only with greater bandwidth, and in 2013 the project received worldwide recognition, taking 2nd place in terms of capitalization. Subsequently, some changes were made to Litecoin regarding the mining algorithm, transaction speed and a number of coins. The order of building the blockchain is the same for both coins, the differences are only in the function of finding the hash. Both coins have a Proof-of-Work consensus algorithm.
Differences between Litecoin and Bitcoin:
- the number of Litecoin coins – 84 million, of which more than 56 million were mined (the issue is limited to 21 million coins at the MTC, of which 17 million are already mined)
- hash algorithm: Litecoin has Scrypt, Bitcoin has SHA-256;
- Computation generation speed is 4 times higher. 6 blocks are generated in 15 minutes;
- In the future, the adaptation of Atomic Swap technology, which will allow you to pay for goods with both Bitcoin and Litecoin. For example, if the seller accepts only BTC for payment, then it will be possible to pay for goods using LTC (automatic conversion) without commission. The technology has not yet been implemented, but it may be in the future that will become a significant competitive advantage compared to the military-technical cooperation;
- there is protection against “double costs”. Peer-to-peer network eliminates the intervention of any third parties.
Litecoin and Bitcoin are very similar. LTC developers have one goal – to increase the speed of transactions. And in part, they succeeded but failed to break the glory of the military-technical cooperation. There are two reasons for this:
- Bitcoin is familiar to investors and has legislative support in some countries. And although the idea of Litecoin seems promising, investors preferred an already proven asset;
- Bitcoin does not have a founder, a development team is working on it, and the network itself is completely decentralized. Litecoin was created by one person, Charlie Lee, who had a significant stake until the end of 2017. This dependence partially frightened off investors who feared an artificial influence on quotes.
The official website of the startup is somewhat confusing. It is a one-page page on which only basic information about wallets, shops, and exchanges is available from the basic information. There is no White Paper, no sensible description of the essence of the project and its advantages, nor information about the developers. Why such a serious startup was left without any more or less informational support is a mystery. And this is one of the reasons why Litecoin is inferior to competitors. Some of the information can be found on litecoin-foundation.org, but this is at least inconvenient.