✔️ Information reviewed and updated in February 2024 by Pedro Martínez González
While there are digital currencies that are hegemonic, or at least protagonists of the market, as is the case with Ethereum and Bitcoin, there are also others that have come to fight for a place at the top such as Litecoin. And it is that every day it is more frequent to find new thriving cryptocurrencies in the market due to their offer and technology.
Here we will talk about one of the most popular competitors and the one that is gaining more prominence in the market. That's right, we will tell you everything you need to know about Litecoin and its relevance as a cryptocurrency in the world of digital currencies.
➡What is Litecoin? ✨
As you could read at the beginning, a spoiler from us, Litecoin is a cryptocurrency which has the abbreviation LTC and was launched in 2011. The main characteristic of this cryptocurrency is that it was created on an open source P2P network which was published under a license from MIT.
The main characteristic of this virtual currency is that it was inspired by Bitcoin, although its development was done under 6 developers led by a former Google employee. Its main purpose is to serve as an improved alternative to Bitcoin.
Its advantage over the leading currency is that it has a much higher processing speed which speeds up the processing of transactions. For it a Scrypt function is incorporated which uses a PoW algorithm thus allowing a sequential function. This helps the Blockchain work more efficiently.
In addition, the inclusion of all this technology makes mining much faster and more accessible than other currencies. And it is that, to mine Bitcoin, for example, a very advanced and powerful equipment is required, whereas Litecoin only needs a good adapted CPU and GPU.
Although the value of Litecoin has not been very stable, since it started with a low value that has been climbing and climbing until it stabilizes above 120 euros, standing out for its peaks such as a mountain range, in reality it has become striking for its relative " low volatility ”.
This has been achieved thanks to the incorporation of updates such as the activation of SegWit, which has been designed to reduce scalability problems of virtual currencies.. This has made it possible to increase the size of the blocks, thus allowing greater speed in blockchain transactions.
Differences between Litecoin and Bitcoin
- Processing speed: The first characteristic that we can find is that Litecoin has a processing speed 4 times higher than that of Bitcoin. This is because Bitcoin takes 10 minutes to process a block while LTC takes 2.5.
- Maximum amount of coins: Another difference is found in the fact that the maximum amount of Litecoin has already been set at 84 million while Bitcoin has only produced 21 million. Of course, as with its competitor, the reward for mining these tokens is reduced from time to time.
- Safety: Thanks to the fact that the blockchain has been improved, as well as new algorithms have been incorporated it has been possible to reduce the vulnerability that this virtual currency has against hacks. This makes the operation much more secure, as well as more private.
- Wider miner network: Another great advantage is that this virtual currency has a truly decentralized chain, as well as technology designed to optimize mining. This makes mining easier, with common computers, which makes the network of miners more extensive.
The main technology behind Litecoin is the use of a Blockchain or chain of blocks, only improved. This makes the blockchain much more efficient, and, above all, much faster processing 4 times faster than Bitcoin does.
Known as a network between equals, peers, Peer to Peer or P2P, this system is responsible for giving life to the validation of the blocks. In the same way, the Scrypt function is added. This allows creating a network of nodes which allows direct data exchange.
Litecoin mining is much simpler and easier thanks to the fact that Scrypt function is incorporated into the Proof of Work algorithm. This means that it becomes possible to mine with GPUs and computers that are much less specialized and with a more accessible average power.
We explain the operation of mining with the Pools, a group of computers which are in charge of solving cryptographic problems together. Once the math puzzle is solved, Litecoin is responsible for granting a reward or benefit to the participants of the process, that is, a Token.
➡Where to use it? ✨
While Litecoin does not yet have the reach of other cryptocurrencies as a form of paymentYes, it has been fighting because it is included as a payment method. We can see this with the proposal sent to Amazon in which it is sought to implement LTC as a form of payment.
OKPAY is another of the first companies that have decided to accept Litecoin as a form of payment which offers a great advantage for users. This is because OKPAY is a good backup and offers you good options for use in different businesses that accept this payment processor.
➡How to get it? ✨
There are three options to get your LTC Token. Lthe first is mining, which offers group rewards, since mining is done in pools or sets. The second option is investment which can be done with many brokers and has a process similar to that of Forex.
Finally, we can find in buying cryptocurrencies a good option to have Litecoin quickly. To do this, you can go to any of the main exchange houses which offer this cryptocurrency, since it is one of the most valued in the market.