The Litecoin is ranked one of the oldest altcoin in the cryptocurrencies business. However, it was launched in the year 2011 as the Bitcoin’s fork. Being a peer-peer internet cryptocurrency, the Litecoin was released under the MIT/X11 license as a project of the open source software. The creation and transfer process of the Litecoin is purely independent as an open source Cryptographic protocol. The Litecoin has so much in common with the Bitcoin including most of its technical details. All in all, there is a very clear line that distinguishes the two, this being the decreased block generation time in the Litecoin.
With the briefing on what the Litecoin is, it would be fair enough if we venture in to the History and background of this altcoin featuring its founders as well as its technical stake and real-time case of use for better understanding. Let me take you through this whole generation of digital currency technology.
History of the Litecoin (LTC)
The genius behind the Litecoin is Charles Lee who happens to be an ex-worker at the Coin Base as the Engineering director. His main aim was to come up with a coin that has so much in common with the Bitcoin but still has its touch of uniqueness in some way. In this case, he came up with what he called ‘The Digital Silver’ complementary to ‘The Digital Gold’ status of the Bitcoin.
Initially, Lee heard about Bitcoins which captured his interest. He understood the significance of these kind of altcoins to the world therefore he immediately ventured in to mining the bitcoins. This was just like his other known counterparts who are enthusiast of the digital coin technology. Later, he decided to get in to the altcoin scene himself.
Lee is an outspoken man who is now known as the key influencer of the Crypto space. This is because he is always transparent to the rest of the world about the performance of the Litecoin especially on social media (Twitter @satoshilite).
Understanding the Litecoin (LTC)
The Litecoin is referred to as an open source software in the Cryptoworld. This is because it is a global payment network that is decentralized as well as fully secure mathematically. The Litecoin is incorporated in most internet spending and web commerce. In this case, the Litecoin has full support from the industry as the most effective medium of exchange in digital currencies, thanks to its liquidity and general trade volume. The Litecoin is a future prospect that will take over and facilitate the digital transactions fully.
Key Features of the Litecoin (LTC)
- The Blockchain – When it comes to handling large volumes of transactions, the Litecoin works perfectly well. This is because the Litecoin has incorporated features like the; Frequent block generations, Segregated witnesses as well as Lightening which enable it to support the large volume transactions without the need to make any adjustments to this software in the future. The Litecoin works perfectly well for those customers who need those instant confirmations and lower transaction fees.
- Mining – The algorithm that is used in the Litecoin is known as the Scrypt which is responsible for determining the mining process of these coins. Its major function is to allow utmost degrees of the parallel processing methods which are more accessible to the new miners too than the traditional algorithm. When you use the Scrypt algorithm you are assured of mining the Litecoin without worrying about using the AISIC-based hardware for mining. The AISIC-based hardware for mining comes hand in hand with the SHA-256 algorithm. With this kind of technology, the Litecoin can produce four times what the Bitcoins can supply yearly.
- Industrial Integration – Litecoin was developed as the fork for the Bitcoin which makes it a result of two very similar cryptocurrencies. The Litecoin is well integrated in the world of digital currencies receiving a lot of support from its loyal and passionate community of users. Some of these sectors include the ATMS, Online exchange platforms, both the merchants who are found online and offline, developers as well as the web casinos.
Benefits of the Litecoin (LTC)
Although the Litecoin was initially developed from the Bitcoin, it has several independent advantages. Some of them include:
- Faster processing and confirmation of transactions than the Bitcoin network. This definitely means that it is more effective and the transaction costs involved are way lower and manageable.
- The Litecoin has a larger number of coins in existence which total up to about 84 billion which is almost four times what the Bitcoin network can produce. This means that there is lesser competition in the mining as well as greater profit margin.
- The Scrypt algorithm that is used in the Litecoin happens to be safer than the other hashing algorithms. In this case, the Scrypt provides for more efficient processing power unlike in the SHA-256 algorithm.
- The Litecoin has very significant gains in the market especially in the financial year of 2017. In the current year, 2018, it is top ranked as having the 6th largest capitalization in the market which by the first week of 2018 had skyrocketing scores on the profit margin.
- In addition, the Litecoin is very flexible meaning that you can easily purchase it using other Cryptocurrencies like the Bitcoins or can be compatible with most of the exchange platforms like the Coin base, Cyrptopia among other platforms.
However, the Litecoin mining can be very energy consuming and for you to safely secure your coins, you need to have basic knowledge on how to come up with the Private keys.
For you to transfer the Litecoins to other people you have to own a Litecoin wallet at first. Let’s say for instance Jane wants to send 0.5 LTC from her wallet to Jack’s wallet. All Jane has to do is copy and paste the wallet’s address of Jack in her wallet app. Jane should then proceed to filling the 0.5LTC in the quantity field then click the send button. In some cases, to avoid inconveniences when typing the wallet address, Jack can provide Jane with a QR code that she can scan with her phone.After the transaction, there will be the miner’s fee which goes to those Litecoin miners who are put in place to be the support team of the network. The process is easy and very efficient.
In conclusion, I hope that with this guideline about the Litecoin, you have an insight on the basic information that you ever wanted to know about it.