Litecoin is the digital silver to Bitcoin’s digital gold. Bitcoin got their first but Litecoin was right behind it with a number of improvements. Litecoin adoption has lagged behind Bitcoin significantly but it does offer a faster transaction rate (hence the “lite) and it remains a popular choice for cryptocurrency enthusiasts.
By: Keegan Francis | Dec 16, 2019 | Modified Apr 10, 2020
Litecoin, having established itself in 2011, became the second most popular cryptocurrency to make its way onto the markets. Litecoin is a lot like the bitcoin network, sharing much of the original codebase. The intention of Litecoin was to provide a faster experience with less friction when compared to what is offered by the bitcoin network. Like many other cryptocurrencies, Litecoin claims to be the best for payments, offering fast transaction times and low fees.
You can buy Litecoin at many cryptocurrency exchanges, including:
All-Time Low : $ 1.11 USD
All-Time High : $ 375.29 USD
All-Time High : $20 billion USD
Current : $3 billion USD
Current : 63 million
Max : 84 million
50-100 transactions per second
Reason: Litecoin is reasonably disbursed throughout the world. Part of the reason for this, is Litecoin’s age in the crypto community. Litecoin being around for 8 years has allowed for the circulated coins to be well disbursed.
Reason: Litecoin is typically compatible with whatever upgrades take place on other related networks such as Bitcoin, and Bitcoin Cash. Upgrades are cross compatible.
Reason: Litecoin is currently among the top 10 cryptocurrencies in the world. This means that Litecoin is traded on virtually every exchange, generating millions of dollars in volume per day.
Litecoin was started in 2011 by an ex-Google employee by the name of Charlie Lee. The Litecoin Foundation, a non-profit company based out of Singapore was started to oversee the long-term development of Litecoin. It was in 2013 that Litecoin started receiving massive amounts of market attention. This occurred after a software release that fixed many of the issues not addressed in the initial version of Litecoin. In total, Litecoin became worth more than a billion dollars just two years after its initial launch. Litecoin would then follow Bitcoin through the market swings, including a massive rise during the crypto bubble in December 2017.
Litecoin, like Bitcoin, adopts the process of mining to release Litecoin into circulation. In 2019, the amount of Litecoin being issued by the network per block decreased by half, from 25 to 12.5. As a result, the number of miners participating in the mining of Litecoin decreased significantly, indicating a loss in popularity, and incentive to participate in the network.
Litecoin has several notable differences that set it apart from Bitcoin. Litecoin has four times the supply (84 Million), which is a reasonably flexible supply for long term considerations. Litecoin has an average block time of 2.5 minutes, which is a quarter of Bitcoin’s allowing Litecoin to publish blocks at a faster rate. This ultimately means that Litecoin is inherently more scalable than the bitcoin network. Faster blocks means that Litecoin can handle more transactions on the network. Furthermore, Litecoin has a larger max block size of 4 MB, allowing each block to hold four times the volume of transactions than Bitcoin. When compared to other blockchain networks,
Litecoin gets to leverage the upgrades that take place on other networks with built on similar technology such as Bitcoin, and Bitcoin Cash. The best example of this is when Bitcoin was upgraded with a technology called “Segregated Witness”, Litecoin was able to be upgraded with minmimal alterations to make it compatible for Litecoin’s codebase.
Litecoin being second to market in the realm of cryptocurrency has allowed it to establish dominance as a “digital silver” to Bitcoin’s “digital gold”. Litecoin is often the second cryptocurrency that newcomers to the world of crypto get exposed to, although this quality is more and more being given to Ethereum.
Litecoin is very much a copy of Bitcoin. There isn’t anything necessarily novel or innovative about Litecoin, which makes its value offering less appealing for those looking to invest in the latest and greatest. Litecoin has the same amount of capability as Bitcoin, which pales in comparison to something like Ethereum or EOS, which are platforms that have enabled smart contracts.
Litecoin still appears to be much more like an investment, rather than an actually currency, due to the value of Litecoin being very volatile.
One of the reasons that Litecoin has its name is because it is “lighter” software than Bitcoin. Due to several tweaks the developers of Litecoin made, Litecoin as a transaction processing network, is faster than Bitcoin.
While nothing in this world is truly free, there exists a couple of ways of obtaining Litecoin with very little effort. One of those ways is through a Litecoin faucet. A faucet is a service that will transfer you a small amount of Litecoin that you can play with. You can also put your Litecoin address on your website, and have people donate Litecoin to you. Create a website, or service that people enjoy, and let the money trickle in.
The total supply of Litecoin is four times the total supply of Bitcoin, making brining it to a total of 84 million coins.
One of the reasons why Litecoin is cheaper than other popular cryptocurrencies is because of its supply. There are four times as many Litecoin as there are Bitcoin, making it much less rare. Based on a simple supply and demand analysis, there are more Litecoin, making each one worth less. Litecoin doesn’t have the same level of adoption of other popular cryptocurrencies such as Ethereum or Bitcoin, and thus is inherently less valuable.
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Litecoin does not have the technological capability of hosting dApps like Ethereum does.
No, Litecoin has a blocktime of 2.5 minutes, which means that your payments may take 2.5 minutes or more to be included in a block.