When we talk about Crypto Currency, most people will immediately think about Bitcoins. However, there is a second currency, Litecoin. Today we’ll cover what Litecoins are
What Is Litecoin?
Litecoin is an alternative to Bitcoin. You may even call it the silver to the gold that is Bitcoin. Litecoin was launched in 2011, approximately two years after Bitcoin. It was an Altcoin at the time, but has become a mainstream Crypto Currency. Litecoin is a decentralized peer-to-peer digital currency using blockchain technology that is fast and flexible. There are many similarities to Bitcoin, but a few differences.
Firstly, Litecoin has a total hard cap. Just like Bitcoin, there’s an upper limit. However, this is 4 times greater than that of Bitcoins which is 21 million. Litecoins use the Scrypt Algorithm, while Bitcoins use the SHA-256.
There Will Only Ever Be 84 Million Litecoins
There is a hard cap on Litecoins, as we mentioned before. This is higher than that on Bitcoins, which has a few effects. Firstly, because the cap is higher, that means it can be mined for longer. And because there are more of them, they’re easier to mine. However, because of this, they’re also worth less than Bitcoins. However, the value of Litecoins has been increasing very quickly
Litecoin Mining Without ASIC Mining
The big difference is that Bitcoin uses SHA-256 algorithm and Litecoin uses Scrypt. What this means for you is that the algorithm is different obviously, but what does it really mean? It means that you can’t mine Litecoins with ASIC systems. This is a big bonus because ASIC miners have made it very difficult for smaller miners to compete. In Litecoin, that is not an issue at all, because it can only be mined using GPU’s. We’ve covered GPU Mining, and a good GPU processor before.
Average Transaction Fee
This is the biggest difference between Litecoin and Bitcoin. The average transaction fee of Litecoins is 0.08 Dollars, per transaction. The average transaction fee of Bitcoins is 2.70 dollars per transaction. That is a massive difference. The average Time of a transaction for Litecoins is also much lower. This is because there are fewer users of Litecoins. So it takes 2.5 minutes for an average Litecoin transaction to be confirmed, but 10 minutes for an average one using Bitcoins
Litecoins have been around almost as long as Bitcoin. It is a fast and stable currency, with lower transaction costs, as we showed above. It’s one of the futures of Crypto currency, and a safe thing to invest in.