Litecoin is an open source software project. It is a peer-to-peer cryptocurrency. Peer-to-peer cryptocurrency means a non-material currency that is protected with cryptography and maintains a decentralized exchange network. Under MIT/X11 license, this cryptocurrency option is released.
Litecoin is process that creates and transfers money based on a cryptographic and open source protocol. It is more similar to Litecoin. LTC is the representing symbol for Litecoin.
On October 7, 2011 this crypto currency option was released on GitHub. A Google employee, Charlie Lee first released it. It was almost similar to Bitcoin Core, except that it has different hashing algorithm, a decreased block generation time and a modified GUI.
By the time of November 2013, $1 billion market capitalization was earned by Litecoin. By time of 2017, it became the first of the top five crypto currencies.
Differences from Bitcoin
- Litecoin is comparatively faster transaction option than bitcoin.
- Litecoin is not a memory-hard function.
Charlie Lee-the creator of Litecoin, took the source code of Bitcoin to use this as a basis. Then he created a faster crypto currency option that will take 2.5 minutes to produce a block. Usually in Bitcoin it takes 10 minutes to generate a block. In this case, Litecoin is faster than bit coin.
Usually Litecoin produces coins that are 4 times more than in amount of Bitcoin. Scrypt hashing algorithm is the main working formula of Litecoin. To run this algorithm, equipment is used that is more expensive than SHA-256. Because of this, graphics processor for Litecoin mining is better.
As we know, bit coin is known as “golden”. Litecoin is known as “silver coins”. As growth has increased in Litecoin, so it took the attention of the Chinese government. Waves Platform declared that they will open a gateway for Litecoin. It will help the crypto currency to work within its own network.
Though litecoin has very many similarities with Bitcoin, still from some perspectives it has some major differences. Litecoin uses Scrypt algorithm over SHA-256 algorithm. Litecoin requires large amount of memory. It uses high cost component systems. This algorithm can make even distribution in mining capacity. It has faster blocks. Transaction confirmation times are led by these blocks.
Litecoin Mining Process
If any miner can successfully verify a block, then 50 litecoins will be given to the process. When time increases, the number of awarded Litecoins will be reduced. One cannot spend twice through the same litecoins. This scam can be detected immediately by another miner. It can only happen if the majority of miner agrees in this false transaction which is not possible if we think in a practical way.
Litecoin is applicable for any currency. Even it will be accepted if it’s U.S dollar. The main formula is when a good value gets cheaper, it becomes more available.
Right now Litecoin is looking forward to get universally accepted. Once their values will be stabilized and the concept of cryptocurrencies will be accepted, this system will become more popular.