Litecoin was created in 2011 and is therefore a well-established cryptocurrency. It is a fork of the bitcoin blockchain, meaning that it shares several similarities with bitcoin. The goals to create a quicker, more reasonable, and cheaper type of bitcoin. It has lower transaction charges than bitcoin and can be up to multiple times faster to extract each square.
Litecoin is a good place to test new cryptocurrency functionality because it has a smaller market cap than bitcoin. This space has allowed LTC to have some advantages over bitcoin. For example, litecoin’s transaction speed is fast enough to make everyday transactions possible, like buying a cup of coffee.
Major Features of Litecoin
LTC is a cryptocurrency with a maximum supply of 84 million litecoins. Each coin can be divided into 8 decimal places. LTC works on the lightning network which allows small transactions to be processed without being added to the main blockchain.
LTC is created using a proof-of-work protocol, which is similar to the one used by Bitcoin. This means that a network of miners carry out complex calculations to keep the Litecoin blockchain running. The Litecoin network uses a Scrypt hashing algorithm, which means that miners can earn newly-minted Litecoins as a reward for their work.
The scrypt algorithm litecoin uses makes it impossible for miners to pool their resources together. This decentralized structure of the network makes it very hard for a group of miners to try and take over the system.
When buyers and sellers use litecoin to make transactions, the data from those transactions is added to new blocks that are being mined. Once that happens, the transaction is considered complete. Miners who confirm transactions get rewarded with fees for each transaction. The fee for a transaction is usually $0.05.
LTC is designed to be used as a currency for everyday transactions and/or as a store of value. You could say that investing in LTC is similar to investing in gold. While gold does have some transactional value, it is mostly seen as a store of value.
How does LTC work?
Litecoin was created in 2011 as a fork from Bitcoin. It was designed to have similar technical features to Bitcoin. Litecoin has since become a popular gateway into the cryptocurrency market, offering users faster transfers and more efficient mining. Like Bitcoin, Litecoin is mainly used as a currency to pay for goods and services.
The proof-of-work mechanism in litecoin uses a scrypt-based process that is not as resource intensive as other mechanisms. This allows the mining process to spread out among more people.
Litecoin has lower transaction fees than bitcoin and requires less time to mine. What litecoin tries to provide is both a currency that is convenient to use and one that people can trust.