What is Litecoin?

in #litecoin5 years ago

Cryptocurrencies such as Bitcoin and Ethereum are currently well known even beyond the crypto scene. Somewhat unknown, but no less interesting is the Litecoin. But what is Litecoin and what makes him?

The Litecoin was released by former Google employee Charlie Lee, who launched the currency in October 2011 and integrated it into an open source software project. In fact, the story of Litecoin began in November 2013.

What is Litecoin: the technical background


Technically, the Litecoin is almost identical to the Bitcoin. All transactions are managed by means of peer-to-peer, by loosening blocks, coins can be generated, ie generated.

In the trading area, the Litecoin is often referred to as "crypto-silver". This term is not so wrong: In the Litecoin network significantly more coins can be generated, which is why significantly more coins are in circulation.

Litecoin: Faster processes, more coins


There are some serious differences to Bitcoin. So the Litecoin offers a faster payment confirmation. While processing a block takes ten minutes for Bitcoin, Litecoin does it within 2.5 minutes.

Instead of using SHA256, Litecoin uses scrypt in its proof-of-work algorithm. Scrypt is specifically designed to complicate brute-force attacks with specialized hardware, but is very memory-intensive and requires that you need a high-performance GPU for mining.

As mentioned earlier, the Litecoin network can generate significantly more coins - while the maximum number of Bitcoins is 21 million, it is 84 million for Litecoin.

Litecoin: shadowy in payment transactions


If you do not want to become a Litecoin Miner yourself, you can buy the currency in various crypto exchanges - if available, of course, with other crypto currencies as a means of payment. If you want to exchange your Litecoins in return, you can do likewise. Litecoin is supported by many crypto wallets, the digital counterpart of the classic wallet, so to speak.

In the medium term, the Lightning Network aims to create a solution for scaling cryptocurrencies. Separate micropayment channels should facilitate the transaction of coins away from the blockchain. Nevertheless, the usability of Litecoin is currently very limited. While many online shops are already accepting payments via Bitcoin or Ethereum, the Litecoin is still in the dark.

Source of info cryptomonday.de.