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What is Litecoin (LTC)?.
Litecoin (LTC) is a currency that was created in 2011 as an alternative to Bitcoin. It was developed by a group of developers who wanted to address the increasing centralization of Bitcoin and the challenges faced by mining companies in profiting from large scale mining. To avoid dominance by enterprise miners Litecoin transformed into a cryptocurrency and implemented a peer to peer payment system.
To learn more about what makes Litecoin unique continue reading.
key Highlight
- Litecoin founded in 2011 by Charlie Lee, a Google engineer shares similarities, with Bitcoin but utilizes a different algorithm. It aims to serve as a transaction medium.Compared to Bitcoin Litecoin has transaction processing times.
Understanding Litecoin (LTC)
One of the goals of Litecoin was to incentivize miners to control the mining process through a different encryption method. However miners quickly embraced machines and continued to improve their mining capabilities.
Similar to Bitcoin Litecoin can be mined using ASIC miners. It holds information about transactions within the blockchain. The block is validated by mining software. Made visible to any participating system (known as a miner) that wants to access it. Once a miner confirms its validity the next block, in the sequence is. Litecoin is given as a reward.
Charlie Lee
Charlie Lee, a Google engineer introduced Litecoin in 2011 as a global payment network that operates without the control of any central authority. Lee often referred to Litecoin as “a version of Bitcoin” and likened it to being the “silver” counterpart to Bitcoins “gold.”
Maximum Supply of Litecoin
Litecoin has a supply of 84 million coins with 150 coins pre mined during its launch. The blockchain of this cryptocurrency generates a block approximately every 2.5 minutes. Over time the supply of Litecoin is designed to decrease in order to maintain its value. By June 2023 there will be than 11 million Litecoins available for mining.
Litecoin Halving
In the context of Litecoin halving refers to the reduction in rewards given when a blocks hash and transaction information are validated, resulting in the creation of a block. This process effectively cuts the number of Litecoins awarded by half. Helps slow down the rate at which new coins are produced.
Significant dates related to Litecoin halving include;
- August 25, 2015: Reduced from 50 to 25 LTC
- August 5, 2019: Reduced from 25 to 12.5 LTC
- August 23, 2023 (Expected): Reduced from 12.5 to 6.25 LTC
Litecoin hashing algorithm
Litecoin utilizes a hashing algorithm called Scrypt (pronounced as “ess crypt”). Scrypt is different from SHA 256 as it requires memory and operates at a slower speed. However modifications were made to the Scrypt algorithm in 2011 by the Tenenbricks project enabling CPUs to mine with it which increased its popularity within the cryptocurrency community.
The memory intensive nature of Scrypt presented challenges in creating application integrated circuits (ASICs) for individual miners. Nonetheless its resistance, against ASICs was short lived as the worlds first Litecoin ASIC miner was introduced in 2016.
Litecoin Development
The landscape of Litecoin mining has evolved over time shifting from miners with personal setups to a corporate structure where tech companies operate large mining pools responsible for the majority of Litecoin mining.
Although its market cap is relatively lower compared to popular cryptocurrencies Litecoin continues to be one of the most actively traded digital currencies. It maintains its position among the 30 coins out of, over 18,000 tracked by CoinMarketCap. This indicates that it remains a cryptocurrency even though investors may not have the same level of enthusiasm as they do for Bitcoin. Additionally new coins are also emerging in the market.
Litecoin Today’s Price
Litecoin Overview
| Coin Name | Litecoin |
| Coin Name | LTC |
| Market Cap | $6,108,864,961 |
| Circulating Supply | 73,536,214 LTC |
Where to Purchase Litecoin
To buy cryptocurrencies you can visit cryptocurrency exchanges. These exchanges are available both within and outside the United States. It’s essential to keep in mind that exchanges within the U.S. Are regulated and supervised by organizations like the Securities and Exchange Commission (SEC) to protect the interests of investors and traders. If you reside in the U.S. your options for exchanges are limited to those operating within the country.
Exchanges based outside the U.S. on the hand may or may not have regulatory oversight. Some countries have implemented controls. Provided regulatory authority, over their financial regulatory agencies. In case you prefer exchanges here are a few where you can purchase Litecoin;
Coinbase
eToro
Kraken
Binance.US
Robinhood
How to Sell Litecoin
To sell your Litecoin you have an options depending on the type of exchange you’re using. If you’re using an exchange like Kraken the process involves sending your LTC to your Kraken address and utilizing their platform to facilitate the sale.
On the hand if you prefer a decentralized exchange such as KuCoin or Crypto.com it’s necessary to connect your wallet to the exchange and complete the “Know Your Customer (KYC)” registration process. Once approved you can deposit your Litecoin. Initiate the selling procedure.
Keep in mind that some exchanges may offer withdrawal options in fiat currency. If converting your Litecoin to fiat is what you seek it’s essential to find an exchange that supports this functionality.
How Litecoin Differs from Bitcoin
One distinction between Litecoin and Bitcoin lies, in their maximum supply.Bitcoin has a supply of 21 million coins while Litecoins supply is limited to 84 million coins.
Another way Litecoin differs from Bitcoin is in its mining protocol. As mentioned earlier Bitcoin uses SHA 256. Litecoin utilizes a modified version of the script protocol to generate new coins. This difference in protocols affects the speed at which transactions are processed for both cryptocurrencies. Compared to Bitcoin, Litecoins transaction processing and confirmation times are four times faster. This makes it particularly convenient, for businesses that don’t require highly secure transactions or have urgent time constraints.
Will Litecoin Have a Future?
Predicting how investors, traders, cryptocurrency enthusiasts, governments and the general public will engage with Litecoin in the coming yearss quite challenging. Governments are exploring cryptocurrency regulations new digital currencies are emerging regularly. The market remains highly unpredictable.
Is Litecoin Still a Good Investment?
Initially Litecoin was not created with the intention of being an investment or a store of value. However some investors do utilize LTC in this way while others do not. To determine if investing in Litecoin is beneficial for you personally it would be wise to seek guidance from an advisor.
Which is Better; Litecoin or Ethereum?
Litecoin serves as a cryptocurrency specifically designed for peer, to peer transactions.On the side Ethereum functions, as a blockchain platform that runs on a worldwide virtual machine enabling different cryptographic technologies. Within the Ethereum blockchain there exists a token known as Ether (ETH) which is utilized to facilitate transactions. In terms of worth ETH typically finds itself among the five and boasts significant trading activity. Deciding between the two options relies on your interests, objectives and intended purposes.
Why is Litecoin so special?
Litecoin was originally created to improve several of Bitcoin’s perceived shortcomings, such as slow transaction processing speeds and mining monopolies.